Core Viewpoint - Smoore International (06969) experienced a significant intraday increase of over 5%, closing at HKD 18.07 with a trading volume of HKD 144 million, driven by the launch of the Glo Hilo product in Poland and anticipated market expansions [1] Group 1: Product Launch and Market Expansion - On September 18, the Glo Hilo product was officially launched on the Glo website in Poland, featuring improved separate and integrated devices with seven color options and an initial offering of 13 different flavored tobacco products (8 tea-based and 5 tobacco flavors) [1] - The marketing strategy includes a promotional campaign by British American Tobacco, offering four packs of tobacco with the purchase of heating devices, indicating a strong push for the Glo Hilo product [1] - The next anticipated market for Glo Hilo is Italy, projected to be the third-largest global market for heated non-combustible (HNB) products by 2024, with expectations for orderly expansion into other incremental markets [1] Group 2: Market Expectations and Valuation - According to CICC, as the product matures, HNB new products are generally expanding globally by reusing trial sales experiences, which is expected to adjust market expectations regarding market entry pace and user growth rates [1] - The improvement in market share, revenue growth, and profit realization are expected to anchor reasonable valuations for leading international tobacco brands, which are leveraging innovative new products to enhance their market share [1]

Investment Rating - The report does not provide a specific investment rating for the company [1] Core Insights - The company reported a revenue of 6.013 billion yuan for H1 2025, representing a year-on-year increase of 18.3%, while net profit decreased by 28.0% to 492 million yuan [1] - The company's proprietary brand business revenue reached 1.274 billion yuan in H1 2025, up 14.1% year-on-year, with significant growth in the European market [2] - The company is experiencing a recovery in the European vaping market, with a strong response to new compliant products, while the U.S. market is expected to stabilize due to tightening regulations [3] - The company is optimizing R&D expenses and maintaining stable operational capabilities, with a gross margin of 37.3% and an adjusted net profit margin of 12.3% in H1 2025 [4] Financial Performance Summary - For 2025-2027, the company is projected to achieve net profits of 1.228 billion yuan, 2.013 billion yuan, and 3.058 billion yuan, with corresponding P/E ratios of 103.4X, 63.1X, and 41.6X [4] - The total revenue is expected to grow from 11.799 billion yuan in 2024 to 19.291 billion yuan in 2027, with a year-on-year growth rate of 18% in 2027 [6] - The company's cash flow from operating activities is projected to improve significantly, reaching 2.680 billion yuan by 2027 [9]