Core Viewpoint - Huachuang Securities maintains a "strong buy" rating for Smoore International (06969) with a target price of HKD 21.90, highlighting the company's leading position in the global electronic vaporization market and potential for growth in both e-cigarette and HNB (Heated Not Burned) segments [1] Group 1: Financial Performance - In Q3 2025, the company reported revenue of CNY 10.21 billion, a year-on-year increase of 21.8%, while net profit was CNY 809 million, a decrease of 23.8%. Adjusted net profit stood at CNY 1.18 billion, a slight increase of 0.1% [1] - For Q3 alone, revenue reached CNY 4.197 billion, up 27.2% year-on-year, with net profit at CNY 317 million, down 16.4%. Adjusted net profit for the quarter was CNY 444 million, reflecting a 4.0% increase year-on-year [1] Group 2: HNB Product Growth - The market feedback for HNB products has been positive, with significant increases in product shipments contributing to impressive revenue growth. The Glo Hilo product has received favorable comparisons to IQOS, particularly for its design and flavor delivery [2] - As Glo Hilo expands in the European market, the product penetration rate is expected to accelerate [2] Group 3: Vaporization Business and Regulatory Environment - The vaporization business is benefiting from stricter regulations on non-compliant products globally, with a recent survey indicating that 80% of U.S. voters support enhanced enforcement against illegal e-cigarettes, which may help the company's business recovery [3] - The company's own brand performance has shown steady growth, aided by the launch of flagship products and enhanced local operations [3] Group 4: Profitability and Cost Management - The adjusted net profit margin for Q3 2025 was approximately 10.6%, a decrease of 2.4 percentage points year-on-year, primarily due to the product mix with a higher proportion of lower-margin HNB devices in early sales [4] - The company has seen steady improvements in sales, management, and R&D expense ratios, which are expected to enhance profit flexibility in the future [4]
华创证券：维持思摩尔国际(06969)“强推”评级 目标价21.9港元