Group 1 - The core viewpoint is that British American Tobacco (BTI.US) is expected to see accelerated growth in its new tobacco business in the second half of 2025, benefiting from a favorable industry environment and product lifecycle expansion [1] - The HNB (Heated Not Burned) segment is showing positive feedback for new products, with a goal for global expansion in 2026, despite a slight decline in market share for the Glo brand in 2025 due to competition [1] - The Glo Hilo product has achieved a 1% market share in Japan and is gaining traction in Poland and Italy, with expectations for stabilization and recovery in market share by 2026 [1] Group 2 - The vaping segment continues to benefit from an improved market environment, with a projected revenue increase in the second half of 2025, following a 13% year-on-year decline in the first half [2] - The Vuse brand has seen a 0.1 percentage point increase in market share, particularly in the U.S. where it rose by 0.7 percentage points, despite some growth being impacted by illegal vaping products in Canada [2] - The new oral tobacco product Velo Plus is expected to drive significant growth in the U.S. market, with a projected increase in market share by 9.2 percentage points to 15.6% and a global market share increase of 5.9 percentage points to 31.8% [2] Group 3 - Traditional cigarette operations remain stable, with a slight decline in market share of 0.1 percentage points, but a positive outlook for the second half of 2025 driven by improved conditions in the U.S. market [3] - The company anticipates a revenue and adjusted operating profit growth of approximately 2% for the fiscal year 2025, with accelerated growth in new tobacco revenue expected to achieve double-digit growth in the second half [3] - The company plans to increase its share buyback program to £1.3 billion in 2026, up from £1.1 billion in 2025 [3]

Investment Rating - The report assigns an "Accumulate" rating for the industry, indicating a positive outlook for investment opportunities in the new tobacco sector [4]. Core Insights - The new tobacco business of British American Tobacco is expected to accelerate growth in the second half of 2025, benefiting from a favorable industry environment [2]. - The global HNB (Heated Not Burned) industry is entering a new product lifecycle, with major brands actively engaging in market cultivation, leading to accelerated industry expansion [4]. - The Glo brand's market share is projected to stabilize and recover in 2026, primarily driven by the Glo Hilo product [4]. Summary by Sections HNB Market Performance - The Glo Hilo product has received positive feedback, with a market share of 1% in Japan and faster acquisition of market share in Poland and Italy [4]. - The overall revenue growth for 2025 is expected to be steady, influenced by competitive activities and resource reallocation [4]. E-Cigarette and New Products - The vaping market is benefiting from an improved market environment, with the Vuse brand gaining a 0.1 percentage point increase in market share, particularly in the U.S. where it rose by 0.7 percentage points [4]. - The Velo Plus product is driving significant growth in the U.S. market, achieving a 9.2 percentage point increase in market share to 15.6% [4]. Traditional Cigarette Business - The traditional cigarette business remains stable, with a slight decline in market share of 0.1 percentage points globally, but a 0.2 percentage point increase in the U.S. [4]. - The company anticipates a revenue growth of approximately 2% for the fiscal year 2025, with new tobacco revenue accelerating and expected to achieve double-digit growth in the second half of 2025 [4].