Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The FDA has recently approved four menthol-flavored e-cigarettes from NJOY, marking the first approval of flavored e-cigarettes beyond tobacco in the U.S. This indicates a clearer regulatory direction and potential benefits for compliant products [2] - The approval of menthol-flavored e-cigarettes is expected to create new opportunities for other brands to gain approval, particularly in the disposable and pod-based product segments [2] - The company, Smoore International, is positioned well in the e-vapor market, having achieved a net profit of 310 million yuan in Q1 2024, a year-on-year increase of 5.6%, indicating a return to positive growth [2] - The company is expected to see a net profit of 1.8 billion, 2.08 billion, and 2.47 billion yuan for the years 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 29, 25, and 21 [3] Financial Summary - The company's revenue for 2024 is projected to be 12.19 billion yuan, with a growth rate of 9.17% [6] - The net profit for 2024 is estimated at 1.8 billion yuan, reflecting a growth rate of 9.17% [6] - The company's total assets are expected to grow from 25.51 billion yuan in 2023 to 32.17 billion yuan by 2026 [5] - The company's earnings per share (EPS) is projected to increase from 0.27 yuan in 2023 to 0.40 yuan in 2026 [6]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The FDA has revoked the marketing ban on Juul, shifting its status to pending review, which allows Juul products to continue selling in the U.S. until the PMTA approval process is completed. This is expected to benefit the market share of pod-based products as the FDA increases regulation on disposable products [5] - The company is positioned as a leading global manufacturer in the vaping industry, with diversified operations in electronic vaporization, heated non-combustion products, special-purpose vaporization, and medical vaporization. The company has seen steady growth in disposable products and improved profitability [5] - The company achieved a net profit of 310 million yuan in Q1 2024, marking a year-on-year increase of 5.6%, indicating a return to positive growth [5] - The company is expected to maintain a strong growth trajectory in the long term, driven by its innovative product offerings and market insights [5] Financial Data Summary - Closing price (HKD): 8.87 [2] - Circulating shares (billion): 6.138 [2] - Net asset per share (HKD): 3.42 [2] - Projected net profit for 2024-2026: 1.8 billion, 2.09 billion, and 2.47 billion yuan respectively, with corresponding PE ratios of 22, 19, and 16 [5] - Revenue growth rates for 2024-2026 are projected at 9.17%, 13.03%, and 11.27% respectively [6][8] - The company’s ROE is expected to improve from 7.68% in 2023 to 8.99% in 2026 [8]

Investment Rating - The report assigns an "Outperform" rating to the company [1] Core Views - The company reported a revenue of 11.168 billion yuan in 2023, a year-on-year decrease of 8.0%, and a comprehensive income of 1.566 billion yuan, down 37.2% year-on-year. In Q1 2024, the comprehensive income was 310 million yuan, reflecting a year-on-year increase of 5.6% [1] - The company has launched upgraded ceramic atomization core technology, FEELM Max, which has led to a 74.5% increase in revenue from disposable electronic atomization products to 3.37 billion yuan [3] - The self-owned brand business saw a revenue increase of 26.0% to 1.847 billion yuan, with the XROS series contributing significantly to sales [3] Summary by Sections Financial Performance - In 2023, the company achieved a total revenue of 11.177 billion yuan, with a net profit of 1.645 billion yuan, reflecting a year-on-year decrease of 34.5% [4] - The projected net profits for 2024 and 2025 are 1.698 billion yuan and 1.975 billion yuan, respectively, indicating growth rates of 3.2% and 16.3% [5] Market Analysis - The sales revenue from enterprise customers decreased by 12.7% to 9.321 billion yuan, primarily due to a 92.7% drop in revenue from the mainland China market [6] - Conversely, sales to the U.S. market increased by 8.2% to 4.084 billion yuan, while revenue from Europe and other markets grew by 8.9% to 5.074 billion yuan [6] Profitability Forecast - The report forecasts that the company's overall revenue will grow by 11.1%, 9.9%, and 8.0% from 2024 to 2026, with retail customer sales expected to maintain a higher growth rate of 25.7%, 23.8%, and 20.8% during the same period [6][7] - The gross margin is expected to improve slightly, reaching 39.1% by 2026 [6] Valuation - The report suggests a price-to-earnings (PE) ratio of 28 to 30 for 2024, leading to a reasonable value range of 7.84 to 8.40 yuan per share [1][4]

Financial Data and Key Metrics - The company expects a double-digit growth in overseas markets, potentially between 10% to 20% [2] - Domestic market revenue is expected to remain flat [2] - Free brand business is projected to grow by 10% to 20% [2] - Medical sector is expected to see a high single-digit to low double-digit growth, excluding additional R&D investments [2] - Capital expenditure for 2024 is estimated to be around 1 billion, similar to 2023 [2] - The company aims to maintain a dividend payout ratio of around 35% [2] Business Line Data and Key Metrics - Growth in 2024 is expected to be driven mainly by disposable products, while refillable products may see a slight decline [1][2] - Cannabis vaporizers are expected to maintain a growth rate of over 20% [2] - The company is investing in new product lines, particularly in medical and beauty sectors, with expected returns in 2025 and 2026 [2][3] Market Data and Key Metrics - The US market saw a decline in the second half of 2023 due to the impact of non-compliant disposable products [6] - The company is preparing for potential bans on disposable products in Europe and the US by developing new product lines [4][5] - The company's free brand, VAPORESSO, is expanding in Europe with new product offerings [5] Company Strategy and Industry Competition - The company is focusing on differentiated products and new technological routes to stay competitive [1] - It is preparing for potential regulatory changes in Europe and the US by diversifying its product portfolio [4][5] - The company is investing in R&D to develop new solutions and technologies, particularly in the medical and beauty sectors [2][3] Management Commentary on Operating Environment and Future Outlook - The company is optimistic about future growth, particularly in 2025 and 2026, as new product lines mature [2][3] - Management is cautious about the regulatory environment in the US and Europe, particularly regarding disposable products [1][4] - The company is prepared to adapt to market changes and regulatory shifts by leveraging its R&D capabilities [4][5] Other Important Information - The company has a strong cash position, with cash and deposits totaling approximately 16 billion [5] - It is open to increasing share buybacks if necessary [5] - The company uses a mix of USD and RMB for customer settlements, with complex arrangements for large clients [6] Q&A Session Summary Question: Trends for refillable and disposable products in 2024 - Disposable products are expected to drive market growth, while refillable products may see a decline due to regulatory pressures [1] Question: CBD growth trends in 2024 - CBD growth is expected to recover in the second half of 2024, driven by new product launches and market recovery [2] Question: Cash flow, capital expenditure, and dividend guidance for 2024 - The company expects strong cash flow, with capital expenditure similar to 2023 and a dividend payout ratio of around 35% [2] Question: Revenue and profit guidance for 2024 - Revenue is expected to grow in overseas markets, while domestic revenue remains flat. Profit growth is expected to be in the high single-digit to low double-digit range, excluding medical R&D investments [2] Question: Impact of US flavor ban and FDA enforcement - The company is cautious about FDA enforcement and the potential impact of flavor bans, but remains optimistic about its product portfolio [4] Question: New product launches in Europe - The company is preparing to launch new products in Europe, including larger-capacity refillable products, to adapt to potential bans on disposable products [4] Question: Pricing pressure from large clients - Pricing pressure from large clients is decreasing as the focus shifts to differentiated products and innovation [5] Question: R&D investment in HMB market - The company is investing in R&D to develop new solutions and technologies, particularly in the HMB market, with expected returns in the future [5] Question: Free brand strategy in Europe - The company is expanding its free brand, VAPORESSO, in Europe with new product offerings, including bottled e-liquids [5] Question: Share buyback plans - The company is open to increasing share buybacks if necessary, given its strong cash position [5] Question: US market decline in H2 2023 - The decline in the US market in H2 2023 was due to the impact of non-compliant disposable products and changes in customer stocking patterns [6] Question: Currency settlement arrangements - The company uses a mix of USD and RMB for customer settlements, with complex arrangements for large clients [6]

Investment Rating - The investment rating for Smoore International is "Buy" (maintained) [1]. Core Views - The report highlights steady growth in performance and anticipates an increase in market share due to stricter regulations in the electronic cigarette industry [1]. - The company reported a pre-tax profit of 400 million HKD for Q1 2024, representing a year-on-year growth of 25.2%, and a net profit of 340 million HKD, up 12.8% year-on-year [1]. - The total comprehensive income reached 310 million HKD, reflecting a year-on-year increase of 5.6% [1]. - Global regulatory policies for electronic cigarettes are continuously evolving, providing opportunities for leading companies to develop in compliance with regulations [1]. - The company emphasizes product research and development, with an investment of approximately 1.48 billion HKD in 2023, marking a year-on-year increase [1]. - The report projects revenue growth of 12% in 2024, 13% in 2025, and 13% in 2026, with net profit growth of 2%, 15%, and 13% respectively [2][3]. Financial Summary - For the fiscal year 2023, the company reported revenue of 11.168 billion HKD, with a year-on-year decline of 8%. Projections for 2024 estimate revenue of 12.546 billion HKD, reflecting a growth of 12% [2][3]. - The net profit attributable to the parent company for 2023 was 1.645 billion HKD, down 34% year-on-year, with a projected increase to 1.677 billion HKD in 2024 [2][3]. - The report indicates a return on equity (ROE) of 7.68% for 2023, with projections of 7.26% for 2024 and 8.04% for 2026 [2][3]. - Earnings per share (EPS) for 2023 was 0.27 HKD, with expectations of maintaining this level in 2024 and increasing to 0.32 HKD and 0.36 HKD in 2025 and 2026 respectively [2][3].

Financial Performance - Revenue for 2023 decreased to RMB 11,168,422 thousand, down from RMB 12,144,980 thousand in 2022[10] - Gross profit for 2023 was RMB 4,334,446 thousand, with a gross margin of 38.8%, compared to 43.3% in 2022[10] - Net profit for 2023 was RMB 1,645,090 thousand, with a net profit margin of 14.7%, down from 20.7% in 2022[10] - Total assets increased to RMB 25,508,284 thousand in 2023, up from RMB 24,359,317 thousand in 2022[10] - Cash and cash equivalents decreased significantly to RMB 5,332,076 thousand in 2023 from RMB 9,762,933 thousand in 2022[10] - Total sales revenue for the period was approximately RMB 11,168,422 thousand, a decrease of 8.0% year-over-year[40] - Revenue from the Chinese mainland market was approximately RMB 163,008 thousand, a significant decrease of 92.7% year-over-year, accounting for 1.5% of total revenue[40] - Revenue from overseas markets was approximately RMB 11,005,414 thousand, an increase of 11.2% year-over-year, accounting for 98.5% of total revenue[40] - Revenue from enterprise customers decreased by 12.7% year-over-year, accounting for 83.5% of total revenue[40] - Revenue from the company's own brand business increased by 26.0% year-over-year, accounting for 16.5% of total revenue[40] - Revenue from the US market for enterprise customers was approximately RMB 4,083,779 thousand, an increase of 8.2% year-over-year, accounting for 36.6% of total revenue[41] - Revenue from Europe and other markets for enterprise customers was approximately RMB 5,074,276 thousand, an increase of 8.9% year-over-year, accounting for 45.4% of total revenue[43] - Revenue from disposable e-vapor products in Europe and other markets was approximately RMB 3,370,149 thousand, a significant increase of 74.5% year-over-year, accounting for 30.2% of total revenue[43] - Revenue from the company's own brand business was approximately RMB 1,847,359 thousand, an increase of 26.0% year-over-year[44] - The company's total R&D expenditure in 2023 was approximately RMB 1,482,846 thousand, an increase of 8.1% compared to the previous year, accounting for 13.3% of revenue[50][51] - The company's R&D expenditure in the electronic nicotine delivery systems sector (including e-cigarettes and heated non-combustible products) was RMB 1,033,899 thousand, accounting for 69.7% of total R&D spending[50] - The company's R&D expenditure in the atomized medical and beauty products sector increased by 67.4% to RMB 277,627 thousand, accounting for 18.7% of total R&D spending[50] - The company's total revenue for the review period was approximately RMB 11,168,422 thousand, a decrease of 8.0% year-on-year[61] - The company's gross profit for the review period was approximately RMB 4,334,446 thousand, a decrease of 17.6% year-on-year, with a gross margin of 38.8% compared to 43.3% in 2022[61] - Revenue from enterprise customers decreased by 12.7% to approximately RMB 9,321,063 thousand, with a significant drop of 92.7% in revenue from the Chinese mainland market[63] - Revenue from the US market increased by 8.2% to approximately RMB 4,083,779 thousand, accounting for 36.6% of total revenue[63] - Revenue from Europe and other regions increased by 8.9% to approximately RMB 5,074,276 thousand, accounting for 45.4% of total revenue[63] - The company's own brand business sales increased by 26.0% to approximately RMB 1,847,359 thousand, accounting for 16.5% of total revenue[62] - Revenue from the company's own-brand business reached approximately RMB 1,847,359 thousand, a year-on-year increase of 26.0%, with revenue from the US at RMB 372,192 thousand (up 8.8%) and from Europe and other regions at RMB 1,475,167 thousand (up 31.3%)[64] - Total revenue for 2023 was RMB 11,168,422 thousand, a decrease of 8.0% compared to 2022, with revenue from Europe and other regions accounting for 45.4% (RMB 5,065,271 thousand), the US at 10.8% (RMB 1,210,769 thousand), and Hong Kong at 36.0% (RMB 4,016,522 thousand)[65] - Revenue from the Chinese mainland market was approximately RMB 875,860 thousand, a significant decrease of 92.7% compared to 2022, accounting for only 1.5% of total revenue after adjustments[66] - Gross profit for 2023 was RMB 4,334,446 thousand, a decrease of 17.6% year-on-year, with the gross margin dropping from 43.3% to 38.8% due to lower-margin products and reduced revenue from the Chinese mainland market[68] - Distribution and sales expenses increased by 35.7% to RMB 526,238 thousand, accounting for 4.7% of total revenue, driven by the expansion of localized marketing teams and increased promotional activities in overseas markets[69] - Employee compensation and benefits within distribution and sales expenses grew by 44.4% to RMB 269,416 thousand, reflecting the company's efforts to strengthen overseas market presence[69] - Market development expenses rose by 42.4% to RMB 129,155 thousand, primarily due to increased marketing activities for new product launches in overseas markets[69] - Travel expenses increased by 22.4% to RMB 34,525 thousand, as the company intensified its overseas market expansion and promotional efforts[70] - Raw material costs accounted for 49.4% of total revenue, up from 41.5% in 2022, driven by the increased proportion of lower-margin disposable e-vapor products[68] - Labor costs decreased by 30.6% to RMB 608,898 thousand, reflecting improved production efficiency and automation, reducing the need for manual labor[68] - Administrative expenses decreased by 24.5% to approximately RMB 867,154 thousand, accounting for 7.8% of revenue, down from 9.5% in the previous year[71] - Employee compensation and benefits decreased by 17.8% to approximately RMB 564,044 thousand, accounting for 5.1% of revenue, down from 5.6% in the previous year[71] - Professional service fees decreased by 38.8% to approximately RMB 100,073 thousand, accounting for 0.9% of revenue, down from 1.3% in the previous year[71] - R&D expenses increased by 8.1% to approximately RMB 1,482,846 thousand, accounting for 13.3% of revenue, up from 11.3% in the previous year[73] - Development costs increased by 25.8% to approximately RMB 466,953 thousand, accounting for 4.2% of revenue, up from 3.1% in the previous year[74] - Other income increased by 24.6% to approximately RMB 619,147 thousand, with bank deposit interest income increasing by 23.9% to RMB 515,056 thousand[75] - Other losses totaled approximately RMB 103,740 thousand, compared to other gains of RMB 133,266 thousand in the previous year[76] - Tax expenses decreased by 34.4% to approximately RMB 291,449 thousand, primarily due to a decrease in taxable profits and the impact of preferential tax rates[78] - Comprehensive income for the year decreased by 37.2% to approximately RMB 1,566,470 thousand, primarily due to a decline in revenue and gross profit margin[79] - The company's current ratio increased to 548.8% as of December 31, 2023, up from 534.9% in the previous year, primarily due to an increase in short-term bank deposits[80][81] - The company's asset-liability ratio was approximately 19.1% as of December 31, 2023, compared to 19.5% in the previous year[84] - The company recorded foreign exchange gains of approximately RMB 19,509 thousand in 2023, compared to RMB 126,711 thousand in 2022[86] - The company incurred losses of approximately RMB 95,810 thousand from forward foreign exchange contracts in 2023, compared to RMB 50,029 thousand in 2022[86] - Approximately 60% of the company's revenue was settled in USD, while 40% was settled in RMB during the reporting period[87] - A 10% increase in the USD/RMB exchange rate would increase the company's comprehensive income by approximately RMB 599,744 thousand, while a 10% decrease would reduce it by the same amount[88] - The company's total employee costs accounted for approximately 23.0% of revenue in 2023, down from 25.0% in 2022[90] - The company invested approximately RMB 1,155,547 thousand in property, plant, equipment, and intangible assets in 2023, compared to RMB 2,478,206 thousand in 2022[92] - As of December 31, 2023, the company had capital commitments of approximately RMB 494,304 thousand for property, plant, and equipment[93] - The company had no bank or financial institution borrowings as of December 31, 2023, and held a bank credit line of RMB 6,000.0 million, of which RMB 1,102.2 million was utilized[83] - The company had no significant contingent liabilities as of December 31, 2023[96] - The annual transaction caps for battery procurement are set at RMB 4,500,000 thousand, RMB 6,000,000 thousand, and RMB 7,500,000 thousand for the years ending December 31, 2023, 2024, and 2025, respectively[101] - Battery product procurement transactions during the review period amounted to approximately RMB 548,638 thousand, accounting for 9.9% of the company's total procurement[102] - The company's independent non-executive directors confirmed that the ongoing connected transactions are conducted under normal commercial terms and are fair and reasonable, aligning with the overall interests of shareholders[104] - The company's auditors issued an unqualified opinion on the ongoing connected transactions, confirming compliance with the relevant agreements and not exceeding the annual cap for 2023[105] - Available distributable reserves stood at RMB 7,440.8 million as of December 31, 2023[155] - Charitable donations amounted to RMB 6.3 million in 2023, down from RMB 8.6 million in 2022[156] - The company proposed a final dividend of HK$0.05 per ordinary share for 2023[160] - The share-based compensation plan accounted for approximately 0.94% of the weighted average number of shares issued in 2023[165] - The pre-IPO share option plan allows for the issuance of up to 319,032,000 shares, representing approximately 5.20% of total issued shares[168] - The exercise price for each share option under the pre-IPO share option plan is RMB 0.38[171] - The pre-IPO share option plan has a validity period from the adoption date (September 30, 2019) to the listing date (July 10, 2020), after which no further options will be granted[172] - Each grantee must pay HKD 1 as consideration for accepting the share options under the pre-IPO share option plan, which is non-refundable and not part of the exercise price[171] - The term of share options is determined by the board and shall not exceed ten years from the date of the option offer[170] - Any unexercised share options will expire after the option term ends[170] - The company granted a total of 16,000,000 share options to Director Chen Zhiping, with an exercise price of HKD 0.38 and a fair value ranging from HKD 2.04 to HKD 2.08 per option[174] - Director Wang Guisheng was granted 6,000,000 share options, with an exercise price of HKD 0.38 and a fair value ranging from HKD 2.34 to HKD 2.42 per option[174] - Director Wang Xin received 1,428,000 share options, with an exercise price of HKD 0.38 and a fair value ranging from HKD 2.34 to HKD 2.42 per option[174] - Director Bu Zhiqiang was granted 544,000 share options, with an exercise price of HKD 0.38 and a fair value ranging from HKD 2.34 to HKD 2.42 per option[174] - Director Bu Weiqiang received 290,000 share options, with an exercise price of HKD 0.38 and a fair value ranging from HKD 2.31 to HKD 2.42 per option[174] - Director Li Xiaoping was granted 1,192,000 share options, with an exercise price of HKD 0.38 and a fair value ranging from HKD 2.34 to HKD 2.42 per option[174] - Director Yuan Xiang received 52,000 share options, with an exercise price of HKD 0.38 and a fair value ranging from HKD 2.31 to HKD 2.42 per option[174] - Director Xiong Fei was granted 81,000 share options, with an exercise price of HKD 0.38 and a fair value ranging from HKD 2.34 to HKD 2.42 per option[174] - Non-director employees were granted a total of 73,219,000 share options, with an exercise price of HKD 0.38 and a fair value ranging from HKD 2.31 to HKD 2.42 per option[174] - The company granted an additional 37,000 share options to non-director employees, with an exercise price of HKD 0.38 and a fair value ranging from HKD 2.08 to HKD 2.11 per option[174] - The number of share options available under the post-IPO share option plan at the beginning of 2023 was 160,063,272 shares, and at the end of 2023, it was 86,793,572 shares[175] - The maximum number of shares that can be issued under the post-IPO share option plan and other share option plans combined is 574,351,272 shares, which is 10% of the total issued shares as of the listing date[177] - The total number of shares that can be issued under the post-IPO share option plan is 255,319,272 shares, representing approximately 4.16% of the total issued shares of 6,137,238,720 as of the annual report date[177] - The post-IPO share option plan is valid for ten years from the listing date (July 10, 2020), after which no further options will be granted[183] - In 2023, the company granted a total of 85,475,100 share options under the post-IPO share option plan on April 19, July 20, August 23, and October 20[184] - 319,150 stock options were granted to Director Wang Guisheng on 2023/08/23, with exercise prices of HKD 7.79 and fair values ranging from HKD 2.15 to HKD 3.06[185] - 172,825 stock options were granted to Director Xiong Shaoming on 2023/08/23, with exercise prices of HKD 7.79 and fair values ranging from HKD 2.15 to HKD 3.06[185] - 87,650 stock options were granted to Director Wang Xin on 2023/08/23, with exercise prices of HKD 7.79 and fair values ranging from HKD 2.15 to HKD 3.06[185] - 66,500 stock options were granted to Director Wang Guisheng on 2022/11/09, with an exercise price of HKD 11.11 and a fair value of HKD 2.77[185] - 117,000 stock options were granted to Director Xiong Shaoming on 2022/11/09, with an exercise price of HKD 11.11 and fair values of HKD 2.77 and HKD 3.19[185] - 7,500 stock options were granted to Director Wang Xin on 2022/11/09, with an exercise price of HKD 11.11 and fair values of HKD 2.77 and HKD 3.19[185] - 44,333 stock options were granted to Director Wang Guisheng on 2021/04/01, with an exercise price of HKD 51.05 and fair values ranging from HKD 10.15 to HKD 12.40[185] - 78,000 stock options were granted to Director Xiong Shaoming on 2021/04/01, with an exercise price of HKD 51.05 and fair values ranging from HKD 10.15 to HKD 12.40[185] - 5,000 stock options were granted to Director Wang Xin on 2021/04/01, with an exercise price of HKD 51.05 and fair values ranging from HKD 10.15 to HKD 12.40[185] - 21,667 stock options were granted to Li Xiaoping (Director) on 2021/04/01 with an exercise price of HK$51.05 and a vesting period from 2021/04/01 to 2023/03/31[186] - 32,500 stock options were granted to Li Xiaoping (Director) on 2022/11/09 with an exercise price of HK$11.11 and a vesting period from 2022/11/09 to 2024/03/31[186] - 33,550 stock options were granted to Bu

Investment Rating - The investment rating for the company is "Buy" [3][10]. Core Views - The company's performance is steadily recovering, with multiple business products and channel expansions continuing to show growth since 2023. Additionally, the company is increasing its R&D efforts based on market demand insights, leading to efficient innovation and agile responses to consumer trends [2]. - The company has adjusted its net profit forecasts for 2024-2026 to 1.65 billion, 1.92 billion, and 2.23 billion RMB respectively, down from previous estimates of 1.94 billion, 2.28 billion, and 2.61 billion RMB. The latest closing price corresponds to P/E ratios of 24, 21, and 18 times for the respective years [2]. - In Q1 2024, the company achieved a pre-tax profit of 399 million RMB, a year-on-year increase of 25.2%, and a net profit of 339 million RMB, up 12.8% year-on-year. Total comprehensive income reached 309 million RMB, reflecting a 5.6% year-on-year growth [2]. Financial Summary - The company reported revenue of 11.177 billion RMB in 2023, with projected revenues of 12.424 billion, 14.286 billion, and 16.427 billion RMB for 2024, 2025, and 2026 respectively, indicating growth rates of 11%, 15%, and 15% [6]. - The gross profit for 2023 was 4.334 billion RMB, with projections of 4.941 billion, 4.941 billion, and 6.534 billion RMB for the following three years [6]. - The net profit for 2023 was 1.645 billion RMB, with forecasts of 1.654 billion, 1.922 billion, and 2.231 billion RMB for 2024, 2025, and 2026 respectively [6]. Market Dynamics - The company is expected to benefit from an improving market landscape, particularly in the domestic market, where a recent announcement from the National Tobacco Monopoly Administration aims to regulate the e-cigarette market, potentially eliminating non-compliant products and concentrating market share among compliant brands [2]. - On the international front, the ongoing crackdown on illegal products by the U.S. FDA and the upcoming ban on disposable e-cigarettes in the UK from April 2025 are likely to favor strong, compliant brands, positioning the company to capitalize on this industry reshuffling [2].

公 司 研 究 思摩尔国际（06969.HK）：海外收入 2024年4月2日 推荐/维持 稳健增长，雾化新业务逐步落地 东 思摩尔国际 公司报告 兴 证 事件：公司发布2023年度业绩，全年实现收入111.68亿元，同比-8.0%；净 公司简介： 券 利润16.45亿元，同比-34.5%；全面综合收益总额15.66亿元，同比-37.2%。 公司是提供雾化科技解决方案的全球领导 股 者，包括基于ODM制造加热不燃烧产品的 份 海外整体增长稳健，中国大陆市场拖累收入。 电子雾化设备及电子雾化组件，拥有先进的 有  企业客户销售方面，23年实现收入93.21亿元，同比-12.7%。（1）美国 研发技术、雄厚的制造实力、广泛的产品组 限 合及多元化的客户群。 市场全年40.84亿元，低基数下（22年产品降价）稳健增长（+8.2%）， 资料来源：公司公告、同花顺 公 23H2同比有所下滑（-6.3%）。公司助力大客户在换弹产品中提升市占率， 未来3-6个月重大事项提示： 司 不过当地市场仍有大量不合规一次性产品，对公司客户的合规产品有所 无 证 不利。（2）欧洲及其他海外地区 50.74 亿元（+8.9%），公司于 ...

Investment Rating - The report maintains an "Outperform" rating for the company [5] Core Views - The company's 2023 performance was generally in line with expectations, with revenue of 11.168 billion RMB, down 8.0% year-on-year, and net profit of 1.645 billion RMB, down 34.5% year-on-year [5] - The U.S. market showed a rebound in TOB revenue, which reached 4.084 billion RMB, an increase of 8% year-on-year, despite challenges in the pod-based segment due to regulatory impacts [5] - The company is expected to benefit from compliance measures that will enhance its market share in the long term [5] - The European market continues to see strong growth in disposable e-cigarettes, with a projected high double-digit growth rate for 2023 [5] - Domestic sales showed a sequential improvement, although revenue was significantly down by 92% year-on-year due to low penetration of new tobacco standards and illegal market impacts [5] Financial Data and Profit Forecast - The company reported a revenue of 11,177 million RMB in 2023, with a forecasted increase to 12,803 million RMB in 2024, representing a year-on-year growth of 14.5% [6] - Net profit for 2023 was 1,645 million RMB, with projections of 1,797 million RMB in 2024, reflecting a growth of 9.2% [6] - The earnings per share (EPS) for 2023 was 0.27 RMB, with an expected increase to 0.29 RMB in 2024 [6] - The price-to-earnings (PE) ratio for 2024 is projected at 20.6 times, indicating a relatively low valuation compared to peers [6] Market Position and Competitive Advantage - The company has established a strong competitive position through years of technological iteration and product development, supported by patent protection and deep ties with global clients [5] - The ongoing investment in R&D, particularly in the medical aerosol field, is expected to yield commercial results, enhancing the company's long-term growth prospects [5]

2024 年 3 月 21 日 公司动态 思摩尔（6969.HK） 证券研究报告 电子烟 最坏时刻已经过去 投资评级： Xx 买入 xx 思摩尔2023年收入111.7亿，同比下降8%，净利润16.5亿，同比下降34.5%。毛利率38.8%， 同比下降4.5pct，净利率14.7%，同比下降5.9pct。随着中美两国政策落地，形势明朗，欧 目标价格： 8.1 港元 洲业务和APV业务引领增长，我们认为公司最坏的时刻已经过去，未来有望保持平稳增长。 结合公司短期的业绩下滑，我们下调24/25/26年净利润分别至19.6/20.5/21.1亿元，对应 现价(2024-3-20)： 6.87港元 EPS分别为0.35/0.37/0.38港元。维持“买入”评级，下调目标价至8.1港元，较当前股价 有17%上涨空间。 报告摘要 总市值(百万港元) 42,165.99 欧洲及其他市场保持增长，一次性产品是主要增长动力。23年来自欧洲及其他市场的收入达 流通市值(百万港元) 42,165.99 到50.7亿，同比增长8.9%。公司在上半年推出了升级feelm max陶瓷雾化芯平台，并实现 总股本(百万股) 6,137.70 ...