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) businesses [1] Group 1: Financial Performance - In the first three quarters, the company achieved 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 was CNY 1.182 billion, a slight increase of 0.1% [1] - For Q3 alone, the company reported revenue of CNY 4.197 billion, a year-on-year increase of 27.2%, and net profit of CNY 317 million, down 16.4%. Adjusted net profit for the quarter was CNY 444 million, up 4.0% year-on-year [1] Group 2: HNB Product Growth - The market feedback for HNB products is positive, with significant increases in product shipments contributing to impressive revenue growth. The Glo Hilo product has received praise for its stylish design and flavor delivery compared to IQOS [2] - As Glo Hilo expands in the European market, the product penetration rate is expected to accelerate [2] Group 3: E-Cigarette Business and Regulatory Environment - The company benefits from stricter regulations on non-compliant products globally, with a recent poll indicating that 80% of U.S. voters support increased enforcement against illegal e-cigarettes, which may help the company's business recovery [3] - The company's own brand performance remains strong due to the launch of flagship new products and enhanced localized operations [3] Group 4: Profitability and Cost Management - The adjusted net profit margin for Q3 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 products in early sales [4] - The company has seen steady improvement in sales, management, and R&D expense ratios, which is expected to enhance profit flexibility in the future [4]
华创证券：维持思摩尔国际“强推”评级 目标价21.9港元