Core Viewpoint - Daiwa's report indicates that Smoore International (06969) achieved a record high total revenue of 4.2 billion RMB in Q3, representing a year-on-year growth of 27%, the largest increase since 2021 [1] Financial Performance - The company's Q3 revenue exceeded market expectations by at least 10%, although the profit margin beat was smaller than anticipated [1] - Management provided guidance that the heated tobacco (HNB) business is expected to contribute at least 1.2 billion RMB in revenue for the year, which is approximately 8% of total sales [1] Earnings Forecast - Daiwa has lowered its earnings per share forecast for Smoore International for the years 2025 to 2027 by 6% to 20%, anticipating a slower recovery in profit margins [1] - Despite the adjustments, Daiwa maintains a "Outperform" rating for the stock, with a slight increase in the target price from 16 HKD to 17 HKD [1] Business Outlook - The report highlights a positive trend in the core business, particularly in the HNB segment, with growth momentum not solely reliant on a single client, British American Tobacco [1] - Although profit visibility remains limited, the improvement in the core business is expected to support a stabilization in the company's stock price [1]
大和：升思摩尔国际目标价至17港元 料加热烟业务开始好转