Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 15.42 [7][8] Core Insights - The company reported a strong Q3 revenue growth of 14.1% year-on-year, reaching RMB 3.286 billion, while the net profit decreased by 22.5% to RMB 379 million [2][3] - The company is expected to continue its revenue growth trajectory, driven by the expansion of its proprietary brand business and the recovery of traditional business segments [3][5] - The report forecasts the company's net profit for 2024-2026 to be RMB 1.698 billion, RMB 2.010 billion, and RMB 2.393 billion respectively, with corresponding EPS of RMB 0.28, RMB 0.33, and RMB 0.39 [2][12] Revenue Performance - For the first three quarters of 2024, the company achieved a revenue of RMB 8.323 billion, a 4.0% increase year-on-year [2] - Q3 revenue alone was RMB 3.286 billion, marking a 14.1% increase compared to the same quarter last year [2][3] Profitability Analysis - The company's pre-tax profit for Q3 was RMB 513 million, down 2.6% year-on-year, while net profit saw a more significant decline of 22.5% [2][4] - The report attributes the profit pressure to increased R&D investments and a significant rise in tax expenses compared to the previous year [4][5] Business Segments - The ToB segment is benefiting from stricter regulations in the U.S. and Europe, leading to a shift from traditional disposable products to new closed and open products [3] - The ToC segment has shown remarkable growth, with proprietary brand revenue increasing by 71.9% year-on-year in H1 2024 [3] R&D and Innovation - The company is increasing its R&D investments, particularly in the heated non-combustible products and medical nebulization sectors, which are seen as long-term growth strategies [5] - New product developments in the medical nebulization field have received recognition from regulatory bodies in Europe and the U.S. [5] Financial Projections - The report projects a revenue increase for 2024 to RMB 12.066 billion, with a growth rate of 8.03% [12] - The expected net profit for 2024 is RMB 1.698 billion, reflecting a slight recovery from the previous year's decline [12]
思摩尔国际：Q3收入表现亮眼，新业务持续推进