Core Viewpoint - Guojin Securities maintains a "Buy" rating for Smoore International (06969), projecting EPS for 2025-2027 to be 0.22, 0.39, and 0.59 yuan respectively, with current stock prices corresponding to PE ratios of 67, 37, and 25 times [1] Financial Performance - For Q1-Q3 2025, the company achieved revenue of 10.21 billion yuan, a year-on-year increase of 21.8%, with net profit and adjusted net profit (excluding stock incentive costs) at 808 million and 1.182 billion yuan, reflecting a year-on-year decrease of 23.8% and an increase of 0.1% respectively [1] - In Q3 2025, the company reported revenue of 4.197 billion yuan, a year-on-year increase of 27.2%, with net profit and adjusted net profit at 317 million and 444 million yuan, showing a year-on-year decrease of 16.4% and an increase of 4.0% respectively [1][2] Business Segments - The HNB (Heat-not-Burn) business is expected to significantly contribute to revenue, with the launch of the hilo product in Japan and Poland driving sales growth [1] - The vaping business is anticipated to achieve double-digit growth in Q3 2025, benefiting from regulatory changes in Europe and increased enforcement against illegal products in the U.S. [1] - The company is focusing on the iteration and expansion of its own brand series, with a steady increase in market share for its OBM (Own Brand Manufacturing) business [1] Profitability Outlook - The adjusted net profit for Q3 2025 increased by 4.0% to 444 million yuan, with an adjusted net profit margin of 10.6%, slightly down from 11.5% in Q3 2024 [2] - Despite a decline in profit margin, the overall performance remains strong, with future profit elasticity expected due to the anticipated increase in HNB business profitability as sales volume grows [2] Market Expansion - The expansion of the legal vaping market in Europe and the U.S. is a significant trend, with the HNB product glo hilo starting promotions in Poland, indicating potential for global sales growth [3] - The company is positioned as a unique player deeply involved in the supply chains of both vaping and HNB products, suggesting a clear path for future growth [3]