Core Viewpoint - The company is leveraging its R&D advantages to launch HNB products, aiming to capitalize on new industry trends and recover from previous regulatory challenges [1] Company Overview - Smoore International possesses strong R&D capabilities, particularly in ceramic core technology, and has established deep partnerships with major global tobacco companies [1] - The company is transitioning its business model from a device supplier to a tobacco business, opening new growth avenues with the launch of HNB products in collaboration with British American Tobacco [1][2] Industry Insights - The HNB segment is expected to accelerate its development, with a low penetration rate of approximately 6% in 2024, indicating significant growth potential [2] - The global traditional tobacco sales are declining, making new tobacco products a viable solution for market recovery, with 2025 anticipated as a pivotal year for major international tobacco companies [2] Market Dynamics - The HNB market is currently in a phase where supply is creating demand, with potential for increased penetration in large markets like the U.S. and China [2] - If HNB penetration in the U.S. reaches 15%, it could correspond to an incremental market size of $19.9 billion and a sales volume of 49.7 billion sticks [2] Product Development - The collaboration between Smoore and British American Tobacco on the Glo Hilo product combines their strengths, with Glo Hilo expected to compete effectively against Philip Morris's IQOS [2] - The latest Glo Hilo product features a quick preheating time of 3-5 seconds and high flavor fidelity, significantly enhancing consumer experience [2] Financial Projections - Revenue sharing for Glo Hilo is projected to be in the single to double-digit percentage range, with expected earnings per stick ranging from 0.04 to 0.11 RMB [2] - If HNB penetration increases to 12% and Glo Hilo market share reaches 25%, Smoore's annual profits from HNB could reach 6 to 7 billion RMB [2] Traditional Business Outlook - The U.S. vaping market is expected to grow from $19.81 billion in 2021 to $27.03 billion in 2024, with a CAGR of 11% [3] - Positive changes in the industry include FDA approvals for new flavors and increased enforcement against illegal products, which may benefit Smoore's vaping business [3] Long-term Strategy - The company is diversifying into medical and beauty vaping, along with special-purpose vaping, to build a sustainable future [3]
思摩尔国际(6969.HK)：万里征途 骐骥为锋