BAT(US:BTI) Changjiang Securities·2026-02-13 11:06Investment Rating - The investment rating for the new tobacco industry is "Positive" and maintained [8] Core Insights - British American Tobacco achieved total revenue of £25.61 billion in FY2025, a year-on-year decrease of 1.0% (an increase of 2.1% year-on-year at constant exchange rates). Revenue from new tobacco products reached £3.62 billion, a year-on-year increase of 5.5% (7.0% at constant exchange rates), accounting for 14.1% of total revenue, an increase of 0.9 percentage points year-on-year. In H2 2025, revenue from new tobacco products was £1.97 billion, a year-on-year increase of 10.6%, with a revenue share of 14.5% [2][6] Summary by Relevant Sections Traditional Tobacco Trends - The decline in traditional tobacco is evident, with a forecasted global cigarette volume decline of approximately 2% in 2026. New tobacco products are expected to be the core growth engine, with projected low double-digit growth in revenue for 2026 [6] Product Categories - Heated Not Burned (HNB): Revenue for HNB products decreased by 0.7% year-on-year (an increase of 1.0% at constant exchange rates). The decline in cigarette sales was 3.7% year-on-year, primarily due to intensified market competition and resource allocation issues related to the early launch of Glo Hilo. Glo's global market share decreased by 1.5 percentage points to 14.9% [6] - Oral Tobacco: The modern oral tobacco segment saw a revenue increase of 47.4% year-on-year (48.0% at constant exchange rates). The market share for all oral products and new oral tobacco increased by 5.8 and 7.5 percentage points to 17.1% and 33.4%, respectively [6] - Vaping Products: Revenue from vaping products decreased by 10.4% year-on-year (8.6% at constant exchange rates). The decline in sales was 12.6% year-on-year, mainly due to illegal products in the U.S. and Canada, as well as regulatory changes in some European countries. Vuse maintained its global leadership with a market share increase of 0.6 percentage points to 38.8% [6] Investment Perspective - With the acceleration of the global new tobacco process, companies with core barriers or resource positioning in the industry present investment opportunities. Key focuses include four major international tobacco companies and two product categories (HNB and oral tobacco). Specific investment targets include Smoore International for HNB and vaping, and China National Tobacco for long-term positioning [6]