Investment Rating - The report maintains a rating of "Buy" for Smoore International (06969.HK) [1] Core Views - The company achieved a revenue of 11.799 billion yuan in 2024, representing a year-on-year increase of 5.6%, while the net profit attributable to shareholders was 1.303 billion yuan, down 20.8% year-on-year [7] - The second half of 2024 saw a revenue of 6.761 billion yuan, up 11.8% year-on-year, but the net profit was 620 million yuan, down 33.2% year-on-year [7] - The gross margin for 2024 was 37.4%, a decrease of 1.3 percentage points, primarily due to changes in product mix [7] - The company is experiencing rapid growth in its proprietary brand business, with revenue reaching 2.475 billion yuan, up 34% year-on-year [7] - The HNB (Heated Not Burned) product line is expected to contribute significantly to profits, with the new product glo Hilo showing positive feedback during trials in Serbia [7] Summary by Sections Financial Performance - Total revenue for 2024 was 11.799 billion yuan, with a year-on-year decline of 8.04% in 2023 [1] - The net profit attributable to shareholders for 2024 was 1.303 billion yuan, down 34.47% from 2023 [1] - Earnings per share (EPS) for 2024 is projected at 0.21 yuan, with a P/E ratio of 59.07 [1] Business Segments - Revenue from proprietary brand business reached 2.475 billion yuan, up 34% year-on-year, while revenue from disposable electronic vapor products was 3.050 billion yuan, down 9.5% [7] - The company’s B2B business revenue for the second half of 2024 was 5.402 billion yuan, up 9.7% year-on-year [7] Market Trends - The report highlights a positive trend in H2 revenue growth due to stricter regulations in Europe and the US, which has led to a recovery in ODM sales [7] - The HNB market is rapidly growing, and the company is diversifying its vaporization business, including beauty and medical applications [7] Profit Forecast - The report adjusts profit forecasts for 2025 to 2027, estimating net profits of 1.636 billion yuan, 2.221 billion yuan, and 2.870 billion yuan respectively [7] - The corresponding P/E ratios for these years are projected at 47, 35, and 27 [7]
思摩尔国际（06969）：2024年业绩公告点评：雾化电子H2增速转正，HNB有望释放利润弹性