Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The company reported a revenue of 11.168 billion, net profit of 1.645 billion, and total comprehensive income of 1.566 billion for the year 2023, reflecting a year-on-year decline of 8%, 34%, and 37% respectively [6]. - The revenue from ODM business faced pressure, while the revenue from disposable vape products saw significant growth, and the self-owned brand business continued to grow rapidly [6]. - The company is optimistic about its long-term growth as a leading electronic cigarette exporter, with an export total of 11.08 billion USD in 2023, a year-on-year increase of 12.48% [7]. Summary by Sections Revenue Performance - In 2023, the company experienced a 13% decline in TOB business revenue, which accounted for 83% of total revenue. Revenue from the US, mainland China, and Europe showed mixed results, with the US up by 8% and mainland China down by 93% [6]. - The TOC business revenue increased by 26%, with its revenue share rising from 8% in 2021 to 17% in 2023, driven by new product launches in overseas markets [6]. Profitability Analysis - The company's net profit decreased by 34% in 2023 due to a decline in domestic revenue, a drop in overall gross margin, and increased sales and R&D expenses. The gross margin and net margin were 38.8% and 14.7%, down by 4.5 and 5.9 percentage points year-on-year [6]. - The company maintained a strong cash flow, with net cash flow from operating activities exceeding net profit for three consecutive years [6]. Future Outlook - The company expects continued growth in self-owned brands and disposable products, with HNB, aerosol medical, and special-use aerosol categories gradually contributing to revenue and profit increments [7]. - Projected net profits for 2024, 2025, and 2026 are 1.65 billion, 1.90 billion, and 2.13 billion respectively, corresponding to a current PE of 23, 20, and 18 times [7].
2023A点评：自主品牌延续亮眼增长，多元发展和降本增效并进