Core Viewpoint - Guojin Securities maintains a "Buy" rating for Smoore International (06969), projecting EPS for 2025-2027 to be 0.22, 0.39, and 0.59 yuan respectively, with current stock prices corresponding to PE ratios of 67, 37, and 25 times [1] Financial Performance - For Q1-Q3 2025, the company achieved revenue of 10.21 billion yuan, a year-on-year increase of 21.8%, with net profit and adjusted net profit (excluding stock incentive costs) at 808 million and 1.182 billion yuan, reflecting a year-on-year decrease of 23.8% and an increase of 0.1% respectively [1] - In Q3 2025, the company reported revenue of 4.197 billion yuan, a year-on-year increase of 27.2%, with net profit and adjusted net profit at 317 million and 444 million yuan, showing a year-on-year decrease of 16.4% and an increase of 4.0% respectively [1][2] Business Segments - The HNB (Heat-not-Burn) business is expected to significantly contribute to revenue, with the launch of the hilo product in Japan and Poland driving sales growth [1] - The vaping business is anticipated to achieve double-digit growth in Q3 2025, benefiting from regulatory changes in Europe and increased enforcement against illegal products in the U.S. [1] - The company is focusing on the iteration and expansion of its own brand series, with a steady increase in market share for its OBM (Own Brand Manufacturing) business [1] Profitability Outlook - The adjusted net profit for Q3 2025 increased by 4.0% to 444 million yuan, with an adjusted net profit margin of 10.6%, slightly down from 11.5% in Q3 2024 [2] - Despite a decline in profit margin, the overall performance remains strong, with future profit elasticity expected due to the anticipated increase in HNB business profitability as sales volume grows [2] Market Expansion - The expansion of the legal vaping market in Europe and the U.S. is a significant trend, with the HNB product glo hilo starting promotions in Poland, indicating potential for global sales growth [3] - The company is positioned as a unique player deeply involved in the supply chains of both vaping and HNB products, suggesting a clear path for future growth [3]

Core Viewpoint - The company reported a significant revenue increase in Q3 2025, driven by the HNB and vaping business, despite a decline in net profit due to initial low-margin sales and ongoing investments in R&D [1][2] Financial Performance - For Q1-Q3 2025, the company achieved revenue of 10.21 billion yuan, a year-on-year increase of 21.8%, with net profit of 809 million yuan, down 23.8% [1] - In Q3 2025, revenue reached 4.197 billion yuan, up 27.2% year-on-year, while net profit was 317 million yuan, a decrease of 16.4% [1] Business Analysis - The HNB business is expected to contribute significantly to revenue, with the HNB product "hilo" launched in Japan and Poland, leading to strong sales [1] - The vaping business is projected to see double-digit growth in Q3 2025, benefiting from regulatory changes in Europe and increased enforcement against illegal products in the U.S. [1] - The company is focusing on brand development and market expansion, with a steady increase in market share for its own brands [1] - The adjusted net profit for Q3 2025 showed a year-on-year increase of 4.0% to 444 million yuan, with an adjusted net profit margin of 10.6% [1] Growth Outlook - The expansion of the legal vaping market in Europe and the U.S. is expected to continue, with the HNB product "glo hilo" gaining traction in Poland [2] - The company is positioned uniquely in the market as a supplier in both vaping and HNB categories, indicating a strong growth potential [2] Earnings Forecast and Valuation - The company forecasts EPS of 0.22, 0.39, and 0.59 yuan for 2025-2027, with corresponding PE ratios of 67, 37, and 25 times [2]

Group 1 - The company reported Q3 2025 financial data, with revenue of 4.197 billion yuan, a year-on-year increase of 27.5%, and adjusted profit of 444 million yuan, a year-on-year increase of 4.8% [1] - HNB is expected to become a major growth driver, with significant revenue increase anticipated due to the pre-production nature and the full rollout of hilo in Japan, leading to substantial sequential growth in sales [1] - The ODM+ strategy has been further validated, with satisfactory growth from new product iterations, and overall growth expected to exceed double digits as new compliant products are launched [1] Group 2 - Emerging businesses are expected to elevate the company's valuation, with the subsidiary successfully submitting an ANDA for Breo Ellipta, which is used for asthma and COPD treatment, indicating potential for further valuation uplift [1] - The company anticipates that HNB will become a primary source of profit release by 2026, with traditional vaping business valuation solidifying [2] - Revenue projections for 2025-2027 are 14.2 billion, 16.9 billion, and 19.5 billion yuan, with corresponding net profits of 1.395 billion, 1.898 billion, and 2.368 billion yuan, leading to PE ratios of 64.53x, 47.44x, and 38.02x respectively, maintaining a "buy" rating [2]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Insights - The company reported a significant revenue and profit increase in Q3 2025, with revenue reaching 4.197 billion yuan, a year-on-year growth of 27.5%, and adjusted profit of 444 million yuan, up 4.8% year-on-year [7] - The HNB (Heat Not Burn) segment is expected to become a major growth driver, with substantial sales growth anticipated in Japan and Europe [7] - The ODM+ strategy has shown satisfactory growth due to successful product iterations, with overall growth expected to exceed double digits [7] - The valuation of the company is expected to rise with the introduction of new compliant products and the recent FDA acceptance of a generic drug application for Breo® Ellipta® [7] - The company forecasts revenues of 14.2 billion, 16.9 billion, and 19.5 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 1.395 billion, 1.898 billion, and 2.368 billion yuan [7] Financial Performance Summary - Revenue projections for the company are as follows: 11,168 million yuan in 2023, 11,799 million yuan in 2024, 14,200 million yuan in 2025, 16,900 million yuan in 2026, and 19,500 million yuan in 2027, with a revenue growth rate of 20.35% in 2025 [6][8] - The net profit forecast shows a decline in 2024 to 1,303 million yuan, followed by a recovery to 1,395 million yuan in 2025, and further growth to 1,898 million yuan in 2026 and 2,368 million yuan in 2027 [6][8] - The company's EPS is projected to be 0.23 yuan in 2025, 0.31 yuan in 2026, and 0.38 yuan in 2027, with corresponding PE ratios of 64.53x, 47.44x, and 38.02x [6][8]