Core Viewpoint - Daiwa's research report indicates that Smoore International's total revenue for Q3 increased by 27% year-on-year to HKD 4.2 billion, marking a historical high and the largest increase since 2021 [1] Group 1: Financial Performance - The management provided guidance for the first time, expecting the heated tobacco (HNB) business to contribute at least HKD 1.2 billion in revenue for the full year, which is approximately 8% of total sales [1] - The key positive factor is the improvement in the HNB business, with growth momentum not solely reliant on a single client, British American Tobacco [1] Group 2: Market Outlook - Despite limited visibility on profitability, the trend of improvement in the core business is expected to help stabilize the company's stock price [1] - Daiwa has revised its earnings per share forecast for Smoore International for 2025 to 2027 down by 6% to 20%, anticipating a slower recovery in profit margins [1] Group 3: Investment Rating - Daiwa maintains a "Outperform" rating for Smoore International, with a slight increase in the target price from HKD 16 to HKD 17 [1]