Company and Industry Summary Company Overview - The company reported a revenue of 11.8 billion and a net profit of 1.3 billion for 2024, reflecting a year-on-year increase of 5.3% in revenue but a decrease of 20.8% in net profit [1] - The overall profit met expectations, with a recovery trend observed in ODM (Original Design Manufacturer) business revenue in the second half of the year [1] ODM Business Insights - The ODM business is projected to decline by 0.3% for the entire year 2024, but is expected to grow by 9.7% year-on-year in the second half [1] - Recovery in the ODM business is noted across various regions, with the United States and Europe showing growth rates of 5.1% and 14.2% respectively in the second half [1] - The Chinese market for ODM is expected to see a year-on-year increase of 25.1%, reaching 240 million [1] - The overall assessment aligns with previous expectations regarding the end of the global downturn for the company's aerosol ODM business [1] OBM Business Performance - The OBM (Original Brand Manufacturer) business is projected to generate 2.48 billion in revenue for the year, reflecting a year-on-year increase of 34%, with a 13.4% increase in the second half [1] R&D Investment - The company is increasing its R&D investment, with a projected R&D expenditure of 1.57 billion for 2024, marking a 6% year-on-year increase, primarily focused on HNB (Heated Not Burned) and medical aerosol products [2] Future Outlook - 2025 is anticipated to be a turning point for the company's performance, with long-term growth expected [2] - Two core growth drivers are emphasized: 1. **Aerosol Products**: The company is closely tied to leading tobacco groups and is expected to benefit significantly from the expansion of the compliant market in the U.S., where over 70% of aerosol sales are currently from the illegal market, as well as from category shifts in Europe [2] 2. **HNB Products**: The glo hilo product line is considered to have a competitive edge, with strong potential for market share growth as major clients express positive sentiments [2] Key Catalysts to Monitor - The market sales performance and consumer feedback for the gloHilo product line in key countries (excluding Serbia) after its launch in 2025 [2] - The regulatory environment for aerosol electronic cigarettes in the U.S. and Europe, and the pace of expansion in the compliant aerosol market [2]

Financial Data and Key Metrics Changes - In 2024, revenue was RMB 13.4 billion, up 5.3% year on year, with a better growth rate in the second half of the year compared to the first half [32] - Gross margin decreased to 37.4% from 38.7% in 2023, attributed to lower gross margin in ODM yield growth [33] - Profit before tax was RMB 1.655 billion, down 14.5%, while after-tax profit decreased by 4.8% [36] - Comprehensive income for the year was RMB 1.416 billion, with earnings per share at RMB 21.42 and a final dividend of RMB 5, resulting in a payout ratio of 40.2% [38] Business Line Data and Key Metrics Changes - Self-branded business revenue was RMB 2.48 billion, increasing its share of total revenue from 16.5% in 2023 to 21% in 2024 [39] - ODM business revenue was RMB 9.32 billion, accounting for 70% of total revenue, with a slight decline of 0.3% year on year [40] - The self-branded business saw a 30% growth in the first half of the year but only 13.3% in the second half due to a higher base [41] Market Data and Key Metrics Changes - In the U.S. market, revenue was RMB 402 million, with significant contributions from Europe and other overseas markets [42] - The China market generated RMB 30 million in revenue, primarily from beauty atomization products launched in the first half of the year [43] - ODM business in Europe saw a slight increase of 0.3%, while the U.S. market experienced a small decline of 2.4% due to cash flow pressures faced by some customers [46] Company Strategy and Development Direction - The company aims to solidify its position in the atomization industry, focusing on e-cigarettes, H&B, beauty, inhalation therapy, and special purpose atomization [20][22] - The management emphasizes the importance of R&D and technology as the main engine for development, with a commitment to innovation and long-term operation [24][25] - The company is optimistic about the future, expecting growth in various segments, particularly in H&B and beauty optimization products [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about growth amidst stability in the e-cigarette market, with expectations for a turning point in 2025 [18][21] - The company is focused on enhancing management quality and productivity to prepare for future high-speed growth [30] - The management highlighted the importance of compliance and adapting to regulatory changes in key markets like the U.S. and Europe [67][116] Other Important Information - The company has invested significantly in R&D, with expenses increasing from RMB 1.48 billion to RMB 1.57 billion in 2024 [35] - The beauty atomization product, Moyo, launched in 2024, has received positive feedback and is expected to perform better in 2025 [75] - The company is exploring new markets and product categories, including inhalation therapy and beauty atomization, to diversify its offerings [54][75] Q&A Session Summary Question: What are the considerations behind the stock incentive plan linked to market cap? - The management emphasized the alignment of the incentive plan with shareholder interests and the confidence in achieving the set market cap goals [81][83] Question: How is customer feedback on new HMB products and their global launch progress? - The management reported positive feedback from trial sales, highlighting improvements in convenience and flavor, with plans for a proactive global rollout [92][95][96] Question: How is the company adapting to changes in consumer behavior and regulations in Europe? - The management noted a shift towards pod-based and open system products, with a focus on compliance and product innovation to meet market demands [99][103] Question: What is the expected timeline for H&B product development and market launch? - The management indicated that the R&D process for H&B products took ten years, and they are now focused on empowering customers to expedite market entry [106][108] Question: What is the impact of new regulations on product pricing and profits in Europe? - The management expressed optimism about stable growth in Europe, driven by compliance and product iteration, which is expected to enhance revenue and profits [116]

Group 1 - The core viewpoint of the articles highlights Smoore International's significant growth in revenue and R&D investment, indicating a strong focus on innovation and market expansion [1][2][3] - In 2024, Smoore International achieved a revenue of approximately 11.799 billion yuan, representing a year-on-year increase of 5.31% [1] - The company's R&D expenditure reached about 1.572 billion yuan, reflecting a year-on-year growth of approximately 6% [1] - The gross profit was around 4.412 billion yuan, with a year-on-year increase of 1.64% [1] - Net profit stood at approximately 1.303 billion yuan, with basic earnings per share of 21.42 cents, and a proposed final dividend of 0.05 HKD per share [1] Group 2 - The self-owned brand business showed remarkable performance, with sales revenue of about 2.475 billion yuan, a substantial year-on-year increase of 34.0%, and its share of total revenue rising from 16.5% in 2023 to 21.0% [1] - Revenue from electronic vapor products in Europe and other markets was approximately 2.024 billion yuan, marking a year-on-year growth of 37.2% [1] - In the U.S. market, revenue reached about 424 million yuan, reflecting a year-on-year increase of 14.0% [1] - The company reported that revenue from enterprise client business was approximately 9.324 billion yuan, showing a slight decline of about 0.3% year-on-year, but a recovery trend was observed in the second half of the year with a revenue of about 5.357 billion yuan, up approximately 9.7% [2] - The growth in R&D spending was primarily due to increased investment in the fields of vapor medical and heated non-combustible products [2] Group 3 - The heated non-combustible business is identified as a crucial second growth curve for the company, with 2025 being a key phase for its rollout [3] - The company plans to support clients in launching heated non-combustible products in more global markets starting in 2025 [3] - Continuous R&D investment in the heated non-combustible sector is expected to yield more technological and product solutions, with a focus on collaboration with industry leaders [3]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of RMB 11,798,662 thousand, representing a year-on-year growth of approximately 5.3%[6] - The gross profit for the same period was RMB 4,411,969 thousand, with a gross margin of 37.4%[4] - The company’s net profit for the fiscal year was RMB 1,303,255 thousand, a decrease from RMB 1,645,090 thousand in the previous year[4] - The comprehensive income for the year was approximately RMB 1,416,913 thousand, a decrease of about 9.5% from RMB 1,566,470 thousand in 2023, primarily due to increased sales and R&D expenses[49] - The group reported a segment profit of RMB 1,640,180 thousand for 2024, down from RMB 1,949,597 thousand in 2023, reflecting a decrease of about 15.9%[113] - Basic earnings per share for 2024 were RMB 21.42, down from RMB 27.01 in 2023[95] Revenue Breakdown - Revenue from the proprietary brand business is approximately RMB 2,475,033 thousand, a year-on-year increase of about 34.0%, accounting for about 21.0% of total revenue[16] - Revenue from the enterprise customer business is approximately RMB 9,323,629 thousand, a slight decline of about 0.3%, accounting for about 79.0% of total revenue[16] - In the U.S. market, revenue from enterprise customers is approximately RMB 3,988,170 thousand, a decline of about 2.4%, accounting for about 33.8% of total revenue[21] - Revenue from the Chinese market was approximately RMB 238,751 thousand, representing a year-on-year growth of about 25.1%[24] - The group’s revenue from major customer A was RMB 4,732,568 thousand in 2024, up from RMB 4,582,362 thousand in 2023, contributing over 10% to total revenue[116] Market Position and Share - The company maintained a market share of approximately 13.1% in the global electronic vaporization equipment market for 2024, down from 13.7% in 2023[11] - The company’s proprietary brand "VAPORESSO" has further increased its market share in the open product segment, becoming a leading brand in major global markets[17] - The proprietary brand business in the U.S. market achieved revenue of approximately RMB 424,289 thousand, a year-on-year increase of about 14.0%[17] Research and Development - Research and development expenditure for the review period was approximately RMB 1,572,313 thousand, an increase of about 6.0% from the previous year, accounting for approximately 13.3% of revenue[25] - The company achieved significant breakthroughs in research and development for its heating-not-burning and medical vaporization businesses during the review period[8] - The company plans to enhance its R&D focus on heated tobacco products and aerosol medical products as key directions for 2025[44] Operational Efficiency - The company achieved significant progress in production operations, enhancing manufacturing competitiveness through collaboration across teams and optimizing production processes[35] - The group aims to enhance manufacturing competitiveness and optimize production processes, with a focus on resource integration and cost reduction[47] Expenses and Costs - Distribution and selling expenses increased by approximately 74.7% to about RMB 919,552 thousand, representing about 7.8% of revenue, driven by increased marketing investments in global operations and new product launches in the Chinese market[60] - Administrative expenses rose by approximately 5.4% to about RMB 914,109 thousand, maintaining a stable percentage of about 7.7% of revenue[63] - R&D expenses grew by approximately 6.0% to about RMB 1,572,313 thousand, accounting for about 13.3% of revenue, with significant investments in the fields of atomization medical and heated non-combustible products[66] Future Outlook - The global electronic vaporization product market is projected to reach approximately $91.42 billion by 2029, with a compound annual growth rate (CAGR) of about 7.4% from 2024 to 2029[37] - The global heated tobacco market is expected to reach around $66.86 billion by 2029, with a CAGR of approximately 10.1% from 2024 to 2029[39] - The company is committed to building a leading global vapor technology platform, focusing on electronic vaporization, heated non-combustible products, and medical vaporization solutions[36] Corporate Governance - The company maintained a governance structure that complies with the Hong Kong Stock Exchange's corporate governance code, with a board comprising eight directors, including three independent non-executive directors[143] - The board of directors is committed to ensuring transparency and accountability to all shareholders, with regular reviews of governance effectiveness[145] Shareholder Communication - The company has established a shareholder communication policy to ensure effective communication with shareholders[152] - The company encourages shareholders to express their opinions and suggestions during the annual general meeting[150]

行业报告 | 行业研究周报 重点推荐：思摩尔国际-电子雾化设备制造商，未来有望受益于电子雾化 设备市场持续扩张 公司发布 2024 年 Q3 业绩，24Q1-Q3 公司实现营收 83.23 亿元，同比 增加 4.0%，实现税后利润 10.62 亿元，同比下降 11.9%;24Q3 实现营 收 32.86 亿元，同比增加 14.1%，环比增加 16.5%，实现税后利润 3.79 亿元，同比下降 22.5%，环比增加 10.2%。我们认为，公司作为提供雾 化科技解决方案的全球领导者，壁垒优势不断凸显，在监管不断趋严的背 景下，预计产业链集中度或将加速提升。 其他建议关注： 新兴产业 证券研究报告 思摩尔高端医疗器械项目投产；法国一次性电子烟禁令生效，24 年中国电子烟出口额保持稳 定 本周关注：思摩尔高端医疗器械项目投产；法国一次性电子烟禁令生效， 24 年中国电子烟出口额保持稳定。 思摩尔旗下科技护肤品牌取得二类医疗器械证书。近日，思摩尔旗下科技 护肤品牌 MOYAL 岚至取得了二类医疗器械证书，并于 2 月 26 日广西贺 州高新区产业举行"无创雾化高端医疗器械项目投产仪式"，项目主要生产 雾化美容设备等产品 ...

Investment Rating - Industry rating is maintained as "Outperform the Market" [9] Core Insights - The report highlights the production launch of Smoore's high-end medical device project, which is expected to generate revenue of 1 billion yuan within three years [4] - The French ban on disposable e-cigarettes officially took effect on February 25, 2025, following legislative approval [5] - China's total e-cigarette export value for 2024 reached approximately 10.96 billion USD, showing a slight year-on-year decline of 1.11% [6] Summary by Sections Smoore's Medical Device Project - Smoore's skincare brand MOYAL has obtained a Class II medical device certificate and launched a non-invasive aerosol high-end medical device project, focusing on aerosol beauty equipment [4] - The project aims to achieve production in the first half of the year and expects to generate 1 billion yuan in revenue within three years [4] E-Cigarette Market Developments - The French government has implemented a ban on disposable e-cigarettes, making it the second EU country to do so after Belgium [5] - The e-cigarette export data for 2024 indicates a total export value of 10.96 billion USD, with the U.S. being the largest market, accounting for one-third of the exports [6] Company Performance - Smoore reported a revenue of 8.32 billion yuan for the first three quarters of 2024, a year-on-year increase of 4.0%, with a net profit of 1.06 billion yuan, down 11.9% [7] - The company is positioned as a global leader in aerosol technology solutions, with increasing competitive advantages amid tightening regulations [7]

证券研究报告 公司研究 [Table_ReportType] 公司点评报告 | [Table_StockAndRank] 思摩尔国际(6969.HK) | | --- | | 投资评级 无评级 | | 上次评级 无评级 | [Table_Author] 姜文镪 新消费行业首席分析师 执业编号：S1500524120004 邮箱：jiangwenqiang@cindasc.com 相关研究 信达证券股份有限公司 CINDA SECURITIES CO.,LTD 北京市西城区宣武门西大街甲127号金隅大厦B 座 邮编：100031 [Table_Title] 砥砺前行，长期主义铸造价值成长 [Table_ReportDate] 2025 年 3 月 12 日 [Table_S 事件：近日公司旗下科技护肤品牌 ummary] MOYAL 岚至取得二类医疗器械证书，并 于 2 月 26 日在广西贺州高新区产业开发区举行"无创雾化高端医疗器械项 目投产仪式"，公司副总裁、美容事业部总裁吴俊兰表示新工厂将全面承接 MOYAL 岚至 TPS 技术平台的医疗器械生产与制造。公司预计 25 年产值有 望达 1.5 亿元，3 年 ...

证券研究报告 公司研究 [Table_ReportType] 公司点评报告 | [Table_StockAndRank] 思摩尔国际(6969.HK) | | --- | | 投资评级 无评级 | | 上次评级 无评级 | [Table_Author] 姜文镪 新消费行业首席分析师 执业编号：S1500524120004 邮箱：jiangwenqiang@cindasc.com 相关研究 IQOS 有望发力美国地区，美国或将成为核心 HNB 市场。2024 年 IQOS 已 解决专利纠纷、重返美国，目前仍处于消费者教育阶段，我们预计新品 ILUMA 在 25H2 通过 PMTA 后，菲莫将正式发力美国市场。2023 年美国总 烟民人数为 4340 万人（卷烟+雾化），根据我们测算，美国消费能力强、新 型烟草教育程度高，假设美国 2030 年 HNB 渗透率达到 30%（HNB 烟民/ 卷烟+雾化+HNB），每年烟弹消耗量有望增长至 800-900 亿支（2023 年全 球烟弹消耗量为 1600 亿支），或将成为比肩日本的核心市场。 英美新品放量可期，全球化进展加速。公司 24 年底已在塞尔维亚推出全新 产品 ...

Investment Rating - The report does not provide a specific investment rating for the company [1] Core Views - The company has recently achieved a Class II medical device certification for its skincare brand MOYAL, with expectations of generating a revenue of 150 million yuan in 2025 and surpassing 1 billion yuan in revenue within three years [1] - The shift towards new tobacco products is compelling leading companies to accelerate their transformation, with a projected 8.4% decline in traditional cigarette sales in the U.S. in 2024 [2] - The U.S. is expected to become a core market for heated non-combustible tobacco (HNB) products, with an estimated annual consumption of 800-900 billion pods by 2030 [3] - The company is positioned as a key supplier in the compliant market, with expectations of revenue recovery in its disposable products despite regulatory pressures [4] - Profit forecasts indicate a net profit of 1.342 billion yuan in 2024, increasing to 2.551 billion yuan by 2026, with corresponding P/E ratios of 49.8X and 30.5X respectively [5] Summary by Sections Recent Developments - The company launched a new factory for MOYAL's medical device production, aiming for significant revenue growth in the coming years [1] Market Trends - The new tobacco landscape is reshaping consumer habits, leading to a decline in traditional cigarette sales and an increased focus on HNB product development [2][3] Financial Performance - The company anticipates a recovery in revenue and profitability, with projected net profits showing a significant increase from 1.342 billion yuan in 2024 to 2.551 billion yuan in 2026 [5] Operational Insights - The company is adapting to regulatory changes and market demands, positioning itself as a core supplier in the compliant market while navigating challenges in disposable product revenues [4]

Investment Rating - The report assigns an "Outperform" rating for the company [1]. Core Insights - The company is positioned as a global leader in compliant vaping technology, with significant growth potential in the Heat-Not-Burn (HNB) segment [3]. Market Overview - The global new tobacco market is estimated at approximately $76.9 billion in 2023, with HNB and e-cigarettes accounting for 45% and 28% of the market, respectively [4][14]. - The penetration rate of new tobacco products among smokers is only 8.1%, indicating substantial room for growth [15]. Regional Analysis - **United States**: The largest market for new tobacco, valued at $24.8 billion in 2023, with HNB market potential expected to increase following patent resolutions between major tobacco companies [23][27]. - **Europe**: The market reached $31 billion in 2023, with a high acceptance of HNB products, particularly in Eastern Europe [5]. - **Japan and South Korea**: Dominant markets for HNB, with respective market sizes of $11.7 billion and $2.6 billion in 2023, showing strong growth trends [5]. Competitive Landscape - Major tobacco companies like PMI and BAT are leading the transition to new tobacco products, with significant market shares in the HNB segment [6]. - The company holds approximately 13.7% of the global e-vapor device market, with a focus on expanding its HNB product offerings [7]. Financial Projections - The company is projected to achieve net profits of $1.304 billion, $1.578 billion, and $2.040 billion for the years 2024, 2025, and 2026, respectively, with corresponding EPS of 0.21, 0.26, and 0.33 [8]. - The estimated market value for the company is expected to reach between HKD 714 billion and HKD 1,020 billion by 2025, with a PE ratio ranging from 45 to 65 [8]. Growth Drivers - The growth is driven by the industry's beta benefits and the anticipated regulatory clarity, alongside the commercialization of HNB products for major clients [8].