Investment Rating - The investment rating for the company is "Buy" (maintained) [1][10]. Core Views - The report highlights a turning point in the company's atomization business and expresses optimism about the future of its HNB (Heated Not Burned) business [1]. - The company reported a total revenue of 11.8 billion RMB for 2024, representing a year-on-year increase of 5.3%. However, net profit decreased by 20.8% to 1.3 billion RMB, with a net profit margin of 11.0% [4][6]. Summary by Sections Financial Performance - In 2024, the company's revenue was 11.8 billion RMB, with a gross margin of 37.4%, down 1.3 percentage points from the previous year. The net profit was 1.3 billion RMB, reflecting a decrease of 20.8% year-on-year [4][6][7]. - The company declared a final dividend of 0.05 HKD per share as of December 31, 2024 [4]. Revenue Breakdown - The self-owned brand business saw significant growth, with revenue reaching 2.48 billion RMB, up 34.0% year-on-year. Notably, revenue from Europe and other regions for electronic atomization products was 2.02 billion RMB, up 37.2% [6]. - Revenue from enterprise client business was 9.32 billion RMB, slightly down by 0.3%. The report anticipates that increased regulatory enforcement in the U.S. will enhance market share for compliant products [6]. Research and Development - The company maintained a high R&D expenditure, amounting to 1.57 billion RMB, which is 13.3% of total revenue. This includes 1.03 billion RMB for electronic nicotine delivery systems [6][7]. - Sales and distribution expenses rose significantly by 74.7% to 920 million RMB, attributed to increased marketing efforts for self-owned brands globally [6]. Future Projections - The company is projected to achieve revenues of 13.13 billion RMB in 2025, 15.27 billion RMB in 2026, and 17.54 billion RMB in 2027, with growth rates of 11%, 16%, and 15% respectively [9][10]. - Expected net profits for 2025, 2026, and 2027 are 1.63 billion RMB, 2.15 billion RMB, and 2.64 billion RMB, with growth rates of 25%, 32%, and 23% respectively [9][10].
思摩尔国际（06969）：2024年报点评报告：雾化业务迎来改善转折点，看好HNB业务后续弹性