Core Viewpoint - Smoore International (06969) experienced a significant decline in stock price following its interim results, with a drop of over 6% in early trading and a current price of 19.23 HKD, despite a revenue increase of 18.3% year-on-year [1] Financial Performance - The company reported a revenue of 6.013 billion RMB for the first half of the year, reflecting an 18.3% increase year-on-year [1] - Adjusted net profit for the period was 737 million RMB, a decrease of 2.1% year-on-year [1] - The overall profit for the period was 492 million RMB, down 27.96% year-on-year [1] - The interim dividend declared was 0.20 HKD per share, compared to 0.05 HKD per share in the same period last year [1] Analyst Insights - Bank of America noted that Smoore's performance was generally in line with expectations, predicting a slight improvement in annual revenue growth, but continued pressure on profit margins [1] - UBS reported that the decline in net profit was primarily due to increased stock-based compensation, higher sales and development expenses, and a rising tax rate [1] - Management expressed optimism for continued revenue growth in the second half, supported by favorable policies for e-cigarettes in the US and Europe, although short-term profitability will be impacted by increased R&D spending [1] - The company is preparing to launch its own products in the US, with specific financial results from new business segments expected to be reflected by 2027 [1] - UBS downgraded its earnings forecast for the company from 10% to 33% for the years 2023 to 2027, citing higher sales, marketing, and R&D expenses, and lowered the target price from 14 HKD to 13.11 HKD, maintaining a "sell" rating [1]

Group 1 - The stock price of Yinghe Technology closed at 23.01 yuan on August 26, 2025, down 1.46% from the previous trading day, with a trading volume of 689 million yuan and a turnover rate of 4.67% [1] - Yinghe Technology's main business includes lithium battery equipment manufacturing and e-cigarette operations, positioning it as a core equipment supplier in the new energy industry chain [1] - The company's products are widely used in power batteries and energy storage, with clients including leading companies such as CATL and BYD [1] Group 2 - According to the company's 2025 semi-annual report, the contract liabilities for lithium battery equipment business reached 2.525 billion yuan, an increase of 52.72% compared to the beginning of the year, indicating a strong order reserve [1] - The company has achieved technological breakthroughs in solid-state battery equipment, with related equipment already delivered for customer pilot line use [1] - In the e-cigarette business, the subsidiary Skoll is continuously expanding into overseas markets, focusing on Europe and North America [1] Group 3 - On August 26, the net outflow of main funds was 33.7564 million yuan, with a cumulative net outflow of 227 million yuan over the past five days [1]

Core Viewpoint - UBS has downgraded the target price for Smoore International (06969) to HKD 13.11 and maintained a "Sell" rating due to a decline in mid-term net profit primarily driven by increased equity compensation, rising sales and development expenses, and a higher tax rate [1] Financial Performance - Smoore International's mid-term net profit has decreased, largely attributed to increased equity compensation and higher sales and development expenditures [1] - The company's management remains optimistic about revenue growth in the second half of the year, citing favorable policies for e-cigarettes in the US and Europe [1] Future Outlook - Short-term profitability is expected to be impacted by increased R&D spending as the company prepares to launch its own products in the US [1] - More specific financial results from new business segments such as heated tobacco, inhalation therapy, and beauty aerosol products are anticipated to be reflected by 2027 [1] Earnings Forecast - UBS has revised its earnings forecast for Smoore International for the years 2023 to 2027 down by 10% to 33%, reflecting higher sales, marketing, and R&D expenses [1]

Core Viewpoint - UBS report indicates that Smoore International's mid-term net profit has declined primarily due to increased equity compensation, rising sales and development expenses, and higher tax rates [1] Financial Performance - The management is optimistic about continued revenue growth in the second half of the year, supported by favorable e-cigarette policies in the US and Europe [1] - The company’s short-term profitability is still impacted by increased R&D expenses as it prepares to launch its own products in the US [1] Future Outlook - Management expects more specific financial results from new business segments such as heated tobacco, inhalation therapy, and beauty aerosol products to be reflected by 2027 [1] - UBS has lowered its earnings forecast for the company from this year to 2027 by 10% to 33%, reflecting higher sales, marketing, and R&D expenses [1] Target Price and Rating - The target price has been reduced from HKD 14 to HKD 13.11, while maintaining a "Sell" rating [1]

Core Viewpoint - UBS report indicates that Smoore International (06969) experienced a decline in mid-term net profit primarily due to increased equity compensation, rising sales and development expenses, and higher tax rates [1] Financial Performance - The management remains optimistic about revenue growth in the second half of the year, supported by favorable e-cigarette policies in the US and Europe [1] - The company’s short-term profitability is still impacted by higher R&D expenditures as it prepares to launch its own products in the US [1] Future Outlook - More specific financial results from new business segments such as heated tobacco, inhalation therapies, and beauty aerosol products are expected to be reflected by 2027 [1] - UBS has revised its earnings forecast for the company downwards by 10% to 33% for the years 2023 to 2027, reflecting increased sales, marketing, and R&D expenses [1] Target Price Adjustment - The target price for Smoore International has been reduced from HKD 14 to HKD 13.11, while maintaining a "Sell" rating [1]

Core Viewpoint - The semi-annual report of Winbond Technology for 2025 demonstrates the company's operational resilience and growth potential in a complex market environment, despite a decline in revenue and net profit year-on-year. Financial Performance - The company achieved total operating revenue of 4.264 billion yuan, a year-on-year decrease of 3.68% - The net profit attributable to shareholders was 271 million yuan, down 19.84% year-on-year - In Q2 alone, the company recorded operating revenue of 2.926 billion yuan, an increase of 14.24% year-on-year, and a net profit of 256 million yuan, up 42.48% year-on-year - The net cash flow from operating activities improved by 495 million yuan, a year-on-year increase of 69.08% [1] Lithium Battery Equipment - Winbond Technology remains a global leader in lithium battery equipment manufacturing, with strong performance in its lithium business - The company's contract liabilities reached 2.525 billion yuan, an increase of 52.72% from the beginning of the year and 75.51% year-on-year, providing solid support for revenue growth in the next 12-18 months [2] - The company has launched innovative products such as the dual-layer Super-E coating machine and the ultra-high-speed multi-station cutting and stacking machine, which significantly enhance production efficiency and reduce energy consumption [3][4] Research and Development - The company's R&D expenses amounted to 307 million yuan, a year-on-year increase of 26.16% - The introduction of advanced technologies in solid-state battery manufacturing, including the third-generation dry mixing and film-forming process, has improved manufacturing efficiency and product performance [3][4] Electronic Cigarette Business - The electronic cigarette business, primarily operated through the subsidiary Skoll, has seen significant growth in overseas markets, particularly in Europe and North America - Skoll has expanded its sales team and marketing efforts, aiming to capture a larger market share in the growing heated tobacco and vaping markets, projected to reach 53.1 billion USD and 38.7 billion USD respectively by 2025 [5] - The demand for pod-based electronic cigarettes is expected to rise, providing new opportunities for Skoll's product offerings [5] Long-term Competitive Advantage - Winbond Technology's commitment to innovation and global expansion positions it for long-term competitiveness - The company has established 10 subsidiaries and 4 manufacturing bases globally, enhancing its service capabilities and market reach [6] - The strategic focus on R&D and market expansion is expected to drive steady growth and long-term value enhancement [6]

Investment Rating - The investment rating for the company is "Buy" and is maintained [9] Core Views - The company achieved a revenue of 6.013 billion HKD in H1 2025, representing an 18% year-on-year increase. However, net profit was 492 million HKD, down 28% year-on-year, while adjusted net profit was 737 million HKD, a decrease of 2% year-on-year. The company also reported a share-based payment expense of 245 million HKD for H1 2025 and declared an interim dividend of 0.2 HKD per share, totaling approximately 1.24 billion HKD in dividends to shareholders [2][6] Revenue Analysis - The revenue growth in H1 2025 was primarily driven by the recovery of the vaping business. Specifically, the TOB (business-to-business) segment saw a 19% year-on-year increase, accounting for 79% of total revenue. Revenue from the TOB segment in the US, mainland China, Europe, and other regions showed varied performance, with increases of 1%, decreases of 6%, and increases of 38% respectively. The TOC (business-to-consumer) segment also grew by 14%, making up 21% of total revenue, with significant growth in mainland China at 2595% year-on-year [10] Profitability Analysis - The overall performance met the central expectations of the earnings forecast, with adjusted profits down 2% year-on-year. The decline in net profit was attributed to insufficient revenue and gross profit growth to offset rising expenses, including a significant increase in share-based payment expenses due to a stock incentive plan launched in late 2024. Additionally, distribution and sales expenses rose by 31% to 491 million HKD, and professional fees related to legal and compliance services surged by 820% to 140 million HKD [10] HNB Business Development - A significant milestone for the company in H1 2025 was the launch of Glo Hilo in collaboration with British American Tobacco. The product received positive consumer feedback during trials in Serbia and Sendai, Japan, with highlights including a close-to-tobacco flavor and reduced preheating time. The company plans to expand Glo Hilo across Japan in September 2025 and into more key markets later in the year. The company aims to continue investing in R&D for HNB products to maintain technological leadership and enhance customer adoption rates [10] Growth Potential - The company is optimistic about its growth potential in the global new tobacco trend. The vaping segment is showing signs of recovery, benefiting from regulatory shifts and increased market share among major clients. The HNB business has significant growth potential, especially considering the current market share of IQOS at over 70%. The industry is expected to continue growing at a double-digit annual rate, with ample room for penetration as the current global penetration rate is only about 6%. Long-term growth trends are also positive for medical vaping and special-purpose vaping [10]

Core Viewpoint - The company RLX Technology (雾芯科技) is experiencing significant growth, with a 40% year-over-year increase in revenue for Q2, driven by its expansion into the nicotine-containing smokeless products market and recent acquisitions in Europe [3][5][6]. Group 1: Financial Performance - Q2 revenue increased from 627 million yuan to 880 million yuan (approximately 123 million USD), marking a 40% growth compared to the same period last year [3][5]. - The company's non-GAAP profit also saw a 35% year-over-year increase, reflecting strong operational performance [5]. - The gross margin improved from 25.2% in the previous year to 27.5% in Q2, while operating expenses grew only 6.3%, significantly lower than revenue growth [7]. Group 2: Market Strategy - The company is focusing on international markets, with international revenue share rising from 17% in 2023 to over 50% by Q3 of the previous year [7]. - Recent acquisitions in Europe and plans to explore markets in the Middle East and Central America are part of the company's strategy to mitigate challenges in the domestic market [6][7]. - The company is also developing oral nicotine products and exploring other smokeless tobacco products, indicating a shift towards new product lines [8]. Group 3: Regulatory Environment - The company faces challenges in the domestic market due to illegal products, which account for 80% to 90% of the market, but it has managed to achieve "considerable" growth in China despite these issues [6][7]. - The management expresses optimism about the regulatory landscape becoming clearer, which could benefit compliant companies like RLX Technology [7]. Group 4: Shareholder Returns - The company maintains a strong cash flow, holding 15.5 billion yuan in cash and short-term investments as of June 30 [8]. - RLX Technology has engaged in stock buybacks and has announced a dividend of 0.01 USD per ADS, indicating a commitment to returning value to shareholders [8].

Market Performance - The Hong Kong stock market saw strong gains, with the Hang Seng Tech Index leading the way, rising by 3.01% to surpass the 5800-point mark and setting a new high for the period [1] - The Hang Seng Index increased by 1.94%, gaining nearly 500 points and approaching the 26000-point threshold, while the National Enterprises Index rose by 1.85%, indicating a bullish market sentiment [1] Sector Performance - Major technology stocks drove the market rally, with Baidu and NetEase both rising over 6%, Alibaba up by 5.5%, Kuaishou increasing by over 5%, JD.com up by over 4%, and Meituan rising over 3% [1] - The implementation of supply-side reforms, combined with multiple catalysts, led to significant gains in the rare earth sector, with Jinli Permanent Magnet surging over 14% [1] - Stocks in copper, gold, and other non-ferrous metals also experienced gains, reflecting a broader positive trend in commodity-related sectors [1] - Goldman Sachs indicated that the boom in stablecoins is just beginning, leading to a collective rise in stablecoin-related stocks [1] - The optimization of real estate policies in Shanghai resulted in strong performance from domestic property stocks, with Vanke Enterprises rising nearly 10% [1] - Other sectors such as gaming, brain-computer interface, steel, home appliances, dining, high-speed rail infrastructure, solar energy, coal, and semiconductor stocks also saw upward movement [1] Declining Sectors - Conversely, consumer electronics stocks generally declined, with the electronic cigarette giant Smoore International falling by 4.6% [1] - Biopharmaceutical B-shares and vocational education stocks mostly trended lower, with the exclusion of certain stocks from the Hang Seng Composite Index [1] - Eucan Vision Biotech B reported a net loss of 132 million yuan in the first half of the year, leading to a decline of over 15% in its stock price [1]

Core Viewpoint - The company reported a revenue of 6.013 billion yuan for the first half of 2025, marking an 18.3% year-on-year increase, while net profit decreased by 28.0% to 492 million yuan [1] Financial Performance - Revenue for H1 2025 reached 6.013 billion yuan, up 18.3% year-on-year [1] - Gross profit was 2.244 billion yuan, a 16.6% increase, with a gross margin of 37.3%, down 0.5 percentage points [1] - Net profit fell to 492 million yuan, a decrease of 28.0%, while adjusted net profit was 737 million yuan, down 2.1% [1] - Adjusted net profit margin stood at 12.3%, down 2.5 percentage points year-on-year [1] Segment Performance - Self-owned brand revenue from electronic vapor products and vapor beauty products was 1.274 billion yuan, up 14.1%, accounting for 21.2% of total revenue [1] - Revenue from the European and other regions was 1.069 billion yuan, a 15.1% increase, driven by the strong performance of the VAPORESSO brand [2] - The U.S. market revenue was 174 million yuan, down 6.7%, while the Chinese market saw a significant increase of 2595.2% to 30.618 million yuan, mainly from the "岚至" brand [2] - Revenue from enterprise clients was 4.739 billion yuan, up 19.5%, making up 78.8% of total revenue [2] Regulatory Environment - Increased enforcement against non-compliant products in the U.S. has been noted, with the FDA and CBP seizing over 135 million USD worth of illegal e-cigarettes [2] - In Europe, several countries have imposed restrictions or bans on disposable e-cigarettes, with the UK implementing a sales ban on June 1, 2025 [2] R&D and Future Growth - The company successfully supported the launch of the high-end HNB product Hilo series, set to be released in Japan in September 2025 [3] - The vapor medical subsidiary is developing leading asthma and COPD products for the U.S. and European markets, aiming for greater revenue contributions [3] - The "岚至" home beauty device has surpassed 10,000 users, and the professional equipment has received Class II medical device certification [3] - R&D expenditure for H1 2025 was 723 million yuan, down approximately 4.9%, representing about 12.0% of revenue [3] Profit Forecast and Investment Outlook - The company is expected to benefit from increased market concentration due to stricter regulations, with significant contributions from HNB business anticipated from 2026 [3] - Adjusted net profit forecasts for 2025-2027 are 1.472 billion, 1.979 billion, and 2.663 billion yuan, respectively, with year-on-year growth of 34.40% and 34.60% in 2026 and 2027 [3]