Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The FDA recently approved seven electronic cigarette products for sale in the U.S. market, all under the Vuse Alto brand, including six tobacco-flavored products and one electronic cigarette device [2] - The approval of Vuse tobacco-flavored products is significant as it indicates the FDA's recognition of their reduced harm potential compared to traditional cigarettes, suggesting that the benefits of switching to these products may outweigh the risks to youth [2] - The company is expected to benefit from its strong partnership with BAT, which has already seen multiple products approved under the PMTA process, positioning the company to capture a larger market share as regulatory scrutiny increases [2] - The company is diversifying its business across various sectors, including electronic vaporization, heated non-combustion, and medical vaporization, and has returned to positive profit growth with a net profit of 310 million yuan in Q1 2024, a year-on-year increase of 5.6% [2] Financial Projections - The company is projected to achieve a net profit of 1.8 billion, 2.08 billion, and 2.47 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding PE ratios of 27, 23, and 20 times [3] - Revenue is expected to grow from 12.19 billion yuan in 2024 to 15.33 billion yuan in 2026, reflecting a compound annual growth rate [4] - The company's net profit margin is projected to improve from 14.73% in 2023 to 16.08% in 2026, indicating enhanced profitability [6]
思摩尔国际：VuseAlto烟草口味获批，合作有望提速