Core Viewpoint - The company's third-quarter performance confirms the upward trend in industry prosperity, with significant achievements in technology research and development [1] Group 1: Investment Recommendations - The company has adjusted its profit forecast for 2025-2027, expecting net profit attributable to shareholders to reach 1.03 billion, 1.94 billion, and 2.54 billion yuan respectively, maintaining a "buy" rating [1] - The company is positioned as a core supplier in the heated non-combustible industry chain, benefiting from long-term R&D investments and a broad growth space [1] - The target price for 2025 is set at 19.87 HKD, based on a PE ratio of 110.0X [1] Group 2: Financial Performance - In Q3 2025, the company achieved a record revenue of 4.197 billion yuan, a year-on-year increase of 27.2% and a quarter-on-quarter increase of 27.5% [1] - The net profit attributable to shareholders was 317 million yuan, a year-on-year decrease of 16.4% but a quarter-on-quarter increase of 5.7% [1] - Excluding equity incentive expenses, net profit increased by 4.0% year-on-year and 4.8% quarter-on-quarter [1] Group 3: Business Growth - The OEM and proprietary brand revenues both experienced growth, with significant increases in HNB and vaping businesses [2] - The company supports strategic customers in global market expansion, leading to a substantial increase in product shipments for HNB [2] - The company has successfully launched new compliant electronic vaping products in response to increased regulatory scrutiny in major global markets [2] Group 4: Industry Trends - The upward trend in industry prosperity is clear, with traditional vaping businesses expected to benefit from regulatory changes in the US and Europe [2] - The new Glo Hilo product has received positive feedback, with plans for nationwide promotion in Japan by September 2025 and expansion into more core markets in the second half of 2025 [2] - The company is developing multiple technology platforms to address various user pain points, accelerating commercialization efforts in collaboration with partners [2]

Core Viewpoint - The report from Guotai Junan indicates that Smoore International (06969) has shown an upward trend in industry prosperity in Q3, leading to an upward revision of profit forecasts for the company, with expected net profits of 1.03 billion, 1.94 billion, and 2.54 billion yuan for 2025-2027, maintaining a "Buy" rating [1] Group 1: Financial Performance - In Q3 2025, the company achieved a record revenue of 4.197 billion yuan, a year-on-year increase of 27.2% and a quarter-on-quarter increase of 27.5% [1] - The net profit attributable to shareholders was 317 million yuan, a year-on-year decrease of 16.4% but a quarter-on-quarter increase of 5.7%; excluding stock incentive expenses, net profit increased by 4.0% year-on-year and 4.8% quarter-on-quarter [1] Group 2: Business Growth - The OEM and proprietary brand revenues both experienced growth on a quarter-on-quarter basis, with significant increases in HNB and vaping businesses [2] - In the HNB segment, the company supported strategic customers in global market expansion, resulting in a substantial increase in product shipments [2] - In the vaping segment, the company assisted more clients in launching new compliant electronic vaping products due to increased regulatory scrutiny in major global markets [2] Group 3: Industry Outlook - The traditional vaping business is expected to benefit from changes in regulatory environments in the US and Europe, with a potential increase in market share under compliant operations [3] - The new Glo Hilo product in the HNB segment has received positive feedback, with the company aiding clients in nationwide product promotion in Japan by September 2025 and plans to expand into more core markets in the second half of 2025 [3] - The company has developed multiple technology platforms to address various user pain points, and collaborative efforts to accelerate commercialization are ongoing, indicating a clear growth path for the business [3]