PMI(US:PM) Xinda Securities·2026-02-09 00:24Investment Rating - The industry investment rating is "Positive" [2] Core Insights - The report highlights that Philip Morris International (PMI) has set a three-year growth plan focusing on new tobacco products, targeting a revenue CAGR of 6%-8% and an operating profit CAGR of 8%-10% from 2026 to 2028 [3] - PMI's revenue for 2025 reached $40.65 billion, a year-on-year increase of 7.3%, with new tobacco product revenue at $16.85 billion, growing by 15.0% [2][3] - The report anticipates significant growth in the U.S. market, particularly with the launch of IQOS ILUMA, which is expected to stimulate the heat-not-burn (HNB) segment [3] Summary by Sections Financial Performance - In Q4 2025, PMI's revenue was $10.36 billion, up 6.8% year-on-year, with new tobacco revenue at $4.35 billion, reflecting a 12.0% increase and accounting for 42% of total revenue [2][3] Market Dynamics - PMI's HNB sales reached 155.1 billion units in 2025, a growth of 11.0%, maintaining a global market share of approximately 76% [4] - In Japan, HNB product penetration reached 32.6% in Q4, with HNB revenue exceeding 50% in December [4] Product Growth - The report notes significant growth in smokeless products, with sales of oral tobacco and vaping products increasing by 18.5% and 100% year-on-year, respectively [5] - The U.S. market for oral tobacco has reached high single-digit penetration, with ZYN maintaining a market share close to two-thirds [5]