Investment Rating - The report maintains a "Buy" rating for the company with a current price target of 7.02 HKD [2] Core Insights - The company reported a total revenue of 11.168 billion HKD and a net profit of 1.566 billion HKD for the year 2023, reflecting a decline of 8.04% and 37.21% respectively [2] - The company's market share decreased to 12.41%, down by 5.7 percentage points, with a notable revenue drop in the domestic market due to regulatory changes [2][3] - The overseas market showed resilience, with revenue growth attributed to localized operations and increased enforcement of regulations, particularly in the U.S. market [2][3] Summary by Sections Financial Performance - In Q4 2023, the company achieved revenue of 3.166 billion HKD and a net profit of 372 million HKD, representing a decline of 3.52% and 8.43% year-on-year [2] - The company's gross margin and net margin for 2023 were 38.8% and 14.03%, down by 4.5 and 6.5 percentage points respectively [2][3] - The company’s revenue from corporate clients decreased by 12.7% to 9.321 billion HKD, while retail client revenue increased by 26.0% to 1.847 billion HKD [2] Market Dynamics - The overseas sales accounted for 98.5% of total sales in 2023, with significant growth in the U.S. market where the company holds a leading market share of 42% for its major product line [2][3] - The company has established five overseas warehouses to enhance delivery speed and efficiency [2] Product Development and Strategy - The company is focusing on product innovation, including the launch of new electronic vaporization technologies and a range of differentiated products in the heated tobacco and medical sectors [3] - The report anticipates a gradual recovery in quarterly profits, driven by the introduction of compliant new products and a tightening regulatory environment [3] Future Projections - Forecasts suggest a revenue increase to 12.739 billion HKD in 2024, with a projected net profit of 1.658 billion HKD, indicating a recovery trend [4][7] - The company is expected to maintain a price-to-earnings ratio of 24 in 2024, with gradual improvements in profitability metrics over the next few years [4][7]
2023年年报点评：海外收入稳健增长，自有品牌持续发力