Investment Rating - The report maintains a "Buy-A" investment rating for the company, with a target price of HKD 12.12, while the current stock price is HKD 9.37 [1]. Core Insights - The report highlights that the company's performance is expected to improve in the medium to long term, driven by the growth of new products and a recovery in the market [6]. - The FDA's recent approval of menthol-flavored e-cigarettes marks a significant shift in regulatory stance, which is anticipated to benefit the company as it is a key supplier to NJOY, a major client [3][4]. - The company has demonstrated confidence in its growth prospects through active share buybacks, having repurchased 78.66 million shares, representing 1.28% of total shares, for a total expenditure of HKD 665 million [6]. Financial Summary - The company is projected to achieve revenues of CNY 123.57 billion, CNY 140.24 billion, and CNY 157.02 billion for the years 2024, 2025, and 2026, respectively, reflecting year-on-year growth rates of 10.65%, 13.49%, and 11.96% [6][8]. - Adjusted net profits are expected to be CNY 16.94 billion, CNY 18.91 billion, and CNY 21.64 billion for the same years, with corresponding growth rates of 0.95%, 11.64%, and 14.43% [6][8]. - The report indicates a projected PE ratio of 36.6x for 2024, decreasing to 30.0x by 2026, suggesting a favorable valuation trend [6][8]. Market Dynamics - The report notes that the demand for disposable products remains strong in overseas markets, and the company is actively launching innovative products to enhance its market share [4]. - Regulatory changes in the UK, which plan to ban disposable e-cigarettes by April 2025, are expected to favor the company's pod-based products, potentially leading to a market shift [4]. - The FDA's increased enforcement against illegal e-cigarette sales is seen as a positive for established players like the company, which have products already approved [6].
思摩尔国际：FDA首次批准薄荷醇口味电子烟，积极回购彰显公司发展信心