Investment Rating - The investment rating for the company is "Buy" (maintained) [1][10]. Core Views - The report highlights a turning point in the company's atomization business and expresses optimism about the future of its HNB (Heated Not Burned) business [1]. - The company reported a total revenue of 11.8 billion RMB for 2024, representing a year-on-year increase of 5.3%. However, net profit decreased by 20.8% to 1.3 billion RMB, with a net profit margin of 11.0% [4][6]. Summary by Sections Financial Performance - In 2024, the company's revenue was 11.8 billion RMB, with a gross margin of 37.4%, down 1.3 percentage points from the previous year. The net profit was 1.3 billion RMB, reflecting a decrease of 20.8% year-on-year [4][6][7]. - The company declared a final dividend of 0.05 HKD per share as of December 31, 2024 [4]. Revenue Breakdown - The self-owned brand business saw significant growth, with revenue reaching 2.48 billion RMB, up 34.0% year-on-year. Notably, revenue from Europe and other regions for electronic atomization products was 2.02 billion RMB, up 37.2% [6]. - Revenue from enterprise client business was 9.32 billion RMB, slightly down by 0.3%. The report anticipates that increased regulatory enforcement in the U.S. will enhance market share for compliant products [6]. Research and Development - The company maintained a high R&D expenditure, amounting to 1.57 billion RMB, which is 13.3% of total revenue. This includes 1.03 billion RMB for electronic nicotine delivery systems [6][7]. - Sales and distribution expenses rose significantly by 74.7% to 920 million RMB, attributed to increased marketing efforts for self-owned brands globally [6]. Future Projections - The company is projected to achieve revenues of 13.13 billion RMB in 2025, 15.27 billion RMB in 2026, and 17.54 billion RMB in 2027, with growth rates of 11%, 16%, and 15% respectively [9][10]. - Expected net profits for 2025, 2026, and 2027 are 1.63 billion RMB, 2.15 billion RMB, and 2.64 billion RMB, with growth rates of 25%, 32%, and 23% respectively [9][10].

Investment Rating - The investment rating for the company is "Buy" [2] Core Insights - The company's performance in Q4 2024 met expectations, with revenue of HKD 11.8 billion, a year-on-year increase of 6%, and a net profit of HKD 1.3 billion, a year-on-year decrease of 21% [9] - The decline in net profit is attributed to a 1.3 percentage point drop in gross margin due to changes in product mix and a 3.1 percentage point increase in sales expense ratio due to increased marketing investments in proprietary brands [9] - The company is focusing on long-term strategies, continuous R&D investments, and strengthening its technological moat while binding with international leading clients [9] Financial Summary - Revenue and profit figures for the company from 2021 to 2027 are as follows: - Revenue: HKD 13,755 million (2021), HKD 12,157 million (2022), HKD 11,177 million (2023), HKD 11,799 million (2024), projected HKD 12,423.9 million (2025E), HKD 14,311 million (2026E), HKD 16,699 million (2027E) [7] - Net Profit: HKD 5,287 million (2021), HKD 2,510 million (2022), HKD 1,645 million (2023), HKD 1,303 million (2024), projected HKD 1,300 million (2025E), HKD 1,653 million (2026E), HKD 2,178 million (2027E) [7] - The company’s PE ratio is projected to be 58.0 (2024E), 46.0 (2025E), and 34.7 (2026E) [7] Business Segments - The company's OEM business showed positive growth in H2 2024, with revenue increasing by 11% year-on-year, particularly in the U.S. market, which saw a 5% increase [9] - The proprietary brand segment continued to grow, with an 11% year-on-year increase in revenue in H2 2024, driven by product line expansion and enhanced brand recognition in the U.S. and U.K. markets [9]

Investment Rating - The investment rating for the company is "Buy" with a target price set at a significant upside potential [4][3]. Core Insights - The company reported a revenue of 11.8 billion HKD for 2024, reflecting a year-on-year growth of 5.3%, while net profit decreased by 20.8% to 1.303 billion HKD [1]. - The company maintains its position as a global leader in the manufacturing of vaporization devices, with a notable increase in its proprietary brand business [2]. - The company is expected to benefit from the tightening regulations in the industry, leading to increased concentration within the supply chain [3]. Summary by Sections Financial Performance - Revenue from enterprise customer business reached 9.324 billion HKD, accounting for 79.0% of total revenue, with a slight decline of 0.3% year-on-year. However, the second half of 2024 saw a recovery with a revenue of 5.357 billion HKD, up by 9.7% [7]. - The company’s proprietary brand business generated 2.475 billion HKD, representing 21.0% of total revenue and a growth of 34% year-on-year [7]. - The gross margin for 2024 was 37.4%, a decrease of 1.3 percentage points, primarily due to changes in product mix [7]. Market Position and Growth - The company holds a market share of approximately 13.1% in the electronic vaporization device sector, maintaining its status as the largest manufacturer globally [7]. - The company’s proprietary brand "VAPORESSO" has seen an increase in market share within the open product market, contributing to overall growth [7]. Research and Development - R&D expenditure for 2024 was 1.572 billion HKD, a 6.0% increase year-on-year, representing 13.3% of total revenue. This investment is focused on vaporization medical products and heated non-combustible products [7].

Investment Rating - The report does not provide a specific investment rating for the company [1] Core Views - The company reported a total revenue of 11.799 billion yuan for 2024, representing a year-on-year increase of 5.6%, while net profit decreased by 20.8% to 1.303 billion yuan [1][2] - The growth in revenue is attributed to strong momentum in APV and cartridge replacement repairs, although profits are under pressure due to increased short-term expenses [1][2] - The company’s APV segment achieved revenue of 2.475 billion yuan in 2024, a significant year-on-year increase of 34.0%, with notable growth in Europe and the US [2][3] - The HNB product line has made significant progress, with successful product launches and positive feedback from customers, positioning HNB as a key growth area for the company [3][4] Summary by Sections Financial Performance - In 2024, the company achieved total revenue of 11.799 billion yuan, with a net profit of 1.303 billion yuan, reflecting a decrease of 20.8% year-on-year [1][7] - The gross margin for 2024 was 37.4%, down 1.4 percentage points from the previous year, while the net profit margin was 12.01%, a decrease of 2.0 percentage points [5][9] - The company expects net profits for 2025-2027 to be 1.547 billion yuan, 2.420 billion yuan, and 3.077 billion yuan respectively, with corresponding P/E ratios of 49.4X, 31.6X, and 24.9X [5][7] Revenue Breakdown - The APV segment's revenue for 2024 was 2.475 billion yuan, with growth rates of 34.0% year-on-year, and the second half of the year saw a revenue of 1.359 billion yuan, up 13.4% year-on-year [2][3] - The OEM business generated revenue of 9.224 billion yuan in 2024, a slight decrease of 0.3% year-on-year, but showed a recovery in the second half with a 10.7% increase [2][3] Future Outlook - The company is focusing on HNB as a second growth curve, with plans for a key rollout in 2025 across multiple global markets [3][4] - The company is also investing in R&D and seeking collaborations with industry leaders to enhance its HNB offerings [3][4]

Investment Rating - The report does not provide a specific investment rating for the company [1] Core Views - The company has shown a steady revenue growth of 5.6% year-on-year, achieving a total revenue of 11.799 billion yuan in 2024, although net profit decreased by 20.8% to 1.303 billion yuan due to increased short-term expenses [1][2] - The company's APV segment has performed well, with a revenue increase of 34.0% year-on-year, reaching 2.475 billion yuan, driven by strong growth in Europe and the US [2] - The HNB product line has made significant progress, with plans for a broader market launch in 2025, indicating potential for future revenue growth [3] Summary by Sections Financial Performance - In 2024, the company reported total revenue of 11.799 billion yuan, with a year-on-year growth of 5.6%. The net profit was 1.303 billion yuan, down 20.8% from the previous year [1][5] - The gross margin for 2024 was 37.4%, a decrease of 1.4 percentage points year-on-year, while the net profit margin was 12.01%, down 2.0 percentage points [5] Revenue Breakdown - The APV segment generated 2.475 billion yuan in revenue, marking a 34.0% increase year-on-year, with notable growth in Europe (+37.2%) and the US (+14.0%) [2] - The OEM business saw a slight decline of 0.3% year-on-year, totaling 9.224 billion yuan, but showed a recovery in the second half of the year with a 10.7% increase [2][3] Future Outlook - The company is focusing on HNB as a key growth area, with innovative product designs and positive feedback from customers, aiming for a significant market presence by 2025 [3] - The forecast for net profit from 2025 to 2027 is projected to grow to 1.547 billion yuan, 2.420 billion yuan, and 3.077 billion yuan respectively, with corresponding P/E ratios decreasing from 49.4X to 24.9X [5][7]

Investment Rating - The investment rating for the company is "Buy" with a target price set above the current price of 13.3 HKD, indicating an expected return of over 20% within the next six months [4][12]. Core Views - The company reported a revenue of 11.8 billion HKD for 2024, reflecting a year-on-year growth of 5.3%, while net profit decreased by 20.8% to 1.303 billion HKD [1][3]. - The company maintains its position as a global leader in the manufacturing of vaporization devices, with a market share of approximately 13.1% [7]. - The self-branded business segment showed significant growth, achieving a revenue of 2.475 billion HKD, which is a 34% increase year-on-year [7]. Summary by Sections Financial Performance - In 2024, the company generated 9.324 billion HKD from enterprise client business, accounting for 79.0% of total revenue, with a slight decline of 0.3% year-on-year. However, the second half of 2024 saw a recovery with a revenue of 5.357 billion HKD, up 9.7% [7]. - The company’s gross margin for 2024 was 37.4%, a decrease of 1.3 percentage points, primarily due to changes in product mix [7]. Business Segments - The enterprise client business saw revenues of 5.096 billion HKD from Europe and other markets, a slight increase of 0.3% year-on-year, while the U.S. market generated 3.988 billion HKD, down 2.4% [7]. - The self-branded business, including the newly launched "Lan Zhi" beauty vaporization product, contributed 2.475 billion HKD, with a notable growth of 34% [7]. Research and Development - The company invested 1.572 billion HKD in R&D in 2024, representing 13.3% of revenue, which is a 6.0% increase year-on-year [7]. - The focus of R&D includes products for vaporization medical applications and heated non-combustible products, with positive feedback received from consumers [7].

Core Viewpoint - Smoore International (06969) experienced a decline of over 6% in stock price, attributed to short-term pressure on profitability despite a revenue increase in the latest financial report [1] Financial Performance - For the fiscal year 2024, Smoore reported revenue of 11.799 billion RMB, reflecting a year-on-year increase of 5.3% [1] - The company's net profit was 1.303 billion RMB, showing a year-on-year decline of 20.8% [1] - Basic earnings per share were 21.42 cents, with a proposed final dividend of 0.05 HKD per share [1] Market and Product Outlook - The chairman and CEO, Chen Zhiping, indicated that the company's support for clients in launching heated not-burn (HNB) products will lead to increased sales in more global markets starting mid-year [1] - Although HNB products are not expected to contribute significantly to profits this year and may even incur losses, they are projected to provide substantial profit contributions starting next year, potentially exceeding those from e-cigarettes in the long term [1]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 16.78 [7][8]. Core Views - The company's revenue for 2024 is projected to be HKD 11.80 billion, reflecting a year-over-year increase of 5.3%, while the net profit attributable to shareholders is expected to be HKD 1.30 billion, a decrease of 20.8% year-over-year. This is slightly below previous expectations due to increased sales and R&D expenses, as well as higher tax expenses compared to the previous year [1][4]. - The second half of 2024 shows a recovery in revenue growth, primarily driven by increased demand for closed-system products due to stricter regulations on non-compliant e-cigarettes in the U.S. and bans on disposable e-cigarettes in several European countries. The company's proprietary brand VAPORESSO is also experiencing rapid growth [1][2]. Summary by Sections Revenue and Profitability - The company's revenue for the first half of 2024 is expected to be HKD 5.04 billion, a decrease of 1.7% year-over-year, while the second half is projected to be HKD 6.76 billion, an increase of 11.2% year-over-year. The net profit for the first half is expected to be HKD 680 million, a decrease of 4.8%, and for the second half, HKD 620 million, a decrease of 33.2% [1][2]. Business Segments - The To B sales revenue for 2024 is projected to be HKD 93.2 billion, a slight decrease of 0.3% year-over-year. The first half is expected to generate HKD 39.2 billion, a decrease of 12.3%, while the second half is expected to recover with HKD 54.0 billion, an increase of 10.7% year-over-year. The U.S. market is expected to see a revenue increase to HKD 21.3 billion in the second half, a quarter-over-quarter increase of 14.6% and a year-over-year increase of 5.2% [2][3]. Cost Structure and Margins - The gross profit margin for 2024 is projected to be 37.4%, a decrease of 1.4 percentage points year-over-year, primarily due to changes in the business structure leading to increased labor and indirect costs. The selling, administrative, and R&D expense ratios are expected to be 7.8%, 7.7%, and 13.2%, respectively, with the increase in selling expenses attributed to the expansion in international markets and new product promotions [3][4]. Future Outlook - The report forecasts net profits for 2025, 2026, and 2027 to be HKD 1.59 billion, HKD 2.21 billion, and HKD 2.85 billion, respectively, with corresponding EPS of HKD 0.26, HKD 0.36, and HKD 0.46. The HNB business is expected to ramp up significantly by 2026, leading to an adjustment in valuation to a PE of 43 times for 2026 [4][6].

Investment Rating - The report maintains a rating of "Buy" for Smoore International (06969.HK) [1] Core Views - The company achieved a revenue of 11.799 billion yuan in 2024, representing a year-on-year increase of 5.6%, while the net profit attributable to shareholders was 1.303 billion yuan, down 20.8% year-on-year [7] - The second half of 2024 saw a revenue of 6.761 billion yuan, up 11.8% year-on-year, but the net profit was 620 million yuan, down 33.2% year-on-year [7] - The gross margin for 2024 was 37.4%, a decrease of 1.3 percentage points, primarily due to changes in product mix [7] - The company is experiencing rapid growth in its proprietary brand business, with revenue reaching 2.475 billion yuan, up 34% year-on-year [7] - The HNB (Heated Not Burned) product line is expected to contribute significantly to profits, with the new product glo Hilo showing positive feedback during trials in Serbia [7] Summary by Sections Financial Performance - Total revenue for 2024 was 11.799 billion yuan, with a year-on-year decline of 8.04% in 2023 [1] - The net profit attributable to shareholders for 2024 was 1.303 billion yuan, down 34.47% from 2023 [1] - Earnings per share (EPS) for 2024 is projected at 0.21 yuan, with a P/E ratio of 59.07 [1] Business Segments - Revenue from proprietary brand business reached 2.475 billion yuan, up 34% year-on-year, while revenue from disposable electronic vapor products was 3.050 billion yuan, down 9.5% [7] - The company’s B2B business revenue for the second half of 2024 was 5.402 billion yuan, up 9.7% year-on-year [7] Market Trends - The report highlights a positive trend in H2 revenue growth due to stricter regulations in Europe and the US, which has led to a recovery in ODM sales [7] - The HNB market is rapidly growing, and the company is diversifying its vaporization business, including beauty and medical applications [7] Profit Forecast - The report adjusts profit forecasts for 2025 to 2027, estimating net profits of 1.636 billion yuan, 2.221 billion yuan, and 2.870 billion yuan respectively [7] - The corresponding P/E ratios for these years are projected at 47, 35, and 27 [7]

Investment Rating - The investment rating for the company is "Buy" (maintained) [6] Core Views - The company is expected to see steady growth in HNB (Heated Not Burned) products in 2025, with significant contributions anticipated in the second half of the year. The potential of the aerosol medical business is also highlighted as a key component of the company's 2030 goals [11] - Revenue for 2024 is projected at 117.99 billion CNY, with a year-on-year growth of 5.3%, while net profit is expected to decline by 20.8% to 13.03 billion CNY [1][11] - The company is focusing on expanding its HNB and aerosol medical product lines, with R&D investments showing significant increases in these areas [3][11] Financial Performance - In 2024, the company achieved a revenue of 117.99 billion CNY, with a net profit of 13.03 billion CNY, resulting in a net profit margin of 11.05% [1] - The company’s revenue for the fourth quarter of 2024 was 34.63 billion CNY, reflecting an 8% increase year-on-year, but a decline in profit by 42% due to high expenses [1] - The projected revenues for 2025, 2026, and 2027 are 128.92 billion CNY, 151.12 billion CNY, and 173.48 billion CNY, respectively, with corresponding net profits of 16.19 billion CNY, 21.21 billion CNY, and 26.59 billion CNY [11][12] Market Potential - The global market for electronic aerosol is expected to reach 91.42 billion USD by 2029, with a CAGR of approximately 7.4% from 2024 to 2029 [4] - The heated not burned market is projected to reach 66.86 billion USD by 2029, with a CAGR of about 10.1% during the same period [4] - The aerosol medical market is anticipated to grow significantly, with the global market for pulmonary drugs and delivery devices expected to reach 93.28 billion USD by 2030 [4]