Investment Rating - Buy rating maintained for Smoore International (6969 HK) [1] Core Views - Smoore International's 2024H1 results were largely in line with expectations, with revenue of RMB 5 037 million (-1 7% YoY) and net profit of RMB 683 million (-4 8% YoY) [1] - The company's self-branded business showed strong growth, with revenue increasing by 71 9% YoY to RMB 1 116 million, driven by new product launches and market share gains [1] - Smoore's gross margin improved by 1 8 percentage points to 38 0% in 2024H1, mainly due to the expansion of higher-margin self-branded business and cost optimization efforts [1] - The company is expected to benefit from industry consolidation amid tightening global regulations, leveraging its compliance capabilities, technological advantages, and flexible business model [1] Business Performance - Self-branded business revenue grew significantly in Europe (88% YoY) and the US (20 6% YoY) in 2024H1 [1] - Enterprise client business revenue declined by 12 3% YoY, with mixed performance across regions: US (-9 8%), Mainland China (+41 4%), Europe (-16 0%) [1] - Smoore increased its R&D investment, particularly in medical vaporization and heat-not-burn products, with R&D expense ratio rising by 3 08 percentage points to 15 09% [1] Financial Projections - Revenue is forecasted to grow 6% in 2024, 15% in 2025, and 11% in 2026, reaching RMB 11 811 million, RMB 13 583 million, and RMB 15 033 million respectively [1][2] - Net profit is expected to be RMB 1 632 million (-1% YoY) in 2024, RMB 1 915 million (+17% YoY) in 2025, and RMB 2 134 million (+11% YoY) in 2026 [1][2] - EPS projections are RMB 0 27 (2024), RMB 0 31 (2025), and RMB 0 35 (2026), with corresponding P/E ratios of 31 38x, 26 75x, and 23 99x [1][2] Financial Ratios - ROE is expected to remain stable at around 7 08%-7 88% from 2024 to 2026 [2] - Gross margin is projected to maintain at approximately 38 0%-38 4% over the next three years [5] - The company's net debt ratio is expected to stay negative, indicating a strong financial position [5]

2024 SMOORE INTERNATIONAL HOLDINGS LIMITED 思摩爾國際控股有限公 司 （於開曼群島註冊成立的有限公司） （股份代號：6969） 中期報告 (Incorporated in the Cayman Islands with limited liability) (Stock code: 6969) Interim Report 2024 SMOORE INTERNATIONAL HOLDINGS LIMITED 思摩爾國際控股有限公 司 (Incorporated in the Cayman Islands with limited liability) (Stock code: 6969) Interim Report 2024 SMOORE INTERNATIONAL HOLDINGS LIMITED 思摩爾國際控股有限公 司 SMOORE INTERN ATIONAL HOLDINGS LIMITED 思 摩 爾 國 際 控 股 有 限 公 司 INTERIM REPO RT 中 期 報 告 2024 目 錄 1 思摩爾國際控股有限公司 二零二四年中期報告 2 公司 ...

上 市 公 司 电子 公 司 点 评 / 公 司 点 评 报告原因：有业绩公布需要点评 | --- | --- | |------------------------|---------------------| | 市场数据： | 2024 年 08 月 23 日 | | 收盘价（港币） | 8.94 | | 恒生中国企业指数 | 6219.24 | | 52 周最高/最低（港币） | 10.52/4.61 | | H 股市值（亿港币） | 548.76 | | 流通 H 股（百万股） | 6,138.24 | | 汇率（人民币/港币） | 1.0926 | 一年内股价与基准指数对比走势： -34% 16% 66% HSCEI 思摩尔国际 资料来源：Bloomberg 证券分析师 屠亦婷 A0230512080003 tuyt@swsresearch.com 研究支持 张文静 A0230122100001 zhangwj@swsresearch.com 联系人 张文静 (8621)23297818× zhangwj@swsresearch.com 2024 年 08 月 26 日 思摩尔国际 (06969) ...

Investment Rating - The report maintains a Buy-A rating for Smoore International (06969 HK) with a 6-month target price of HKD 12 12 [4] Core Views - Smoore International's self-owned brand business showed strong growth in H1 2024 with revenue increasing by 71 94% YoY to RMB 1 116 billion while ODM revenue declined by 12 35% YoY to RMB 3 922 billion [2] - The company's gross margin improved to 38 0% in H1 2024 up 1 8 percentage points YoY driven by the higher proportion of high-margin self-owned brand business and cost reduction efforts [3] - Smoore International is expected to achieve revenue of RMB 12 357 billion in 2024 representing a YoY growth of 10 65% with adjusted net profit of RMB 1 694 billion a YoY increase of 0 95% [3] Business Performance - In H1 2024 Smoore's self-owned brand VAPORESSO continued to gain market share in the open-system product category with revenue from Europe and other markets surging 88 0% YoY to RMB 929 million and US revenue growing 20 6% YoY to RMB 187 million [2] - The company's enterprise-facing sales showed signs of recovery with US revenue declining 9 8% YoY to RMB 1 858 billion and European revenue down 16 0% YoY to RMB 1 976 billion However Q2 2024 saw a sequential recovery with US revenue up 6 1% QoQ and European closed-system pod revenue surging 93 2% QoQ [2] Financial Performance - Smoore's H1 2024 revenue decreased by 1 67% YoY to RMB 5 037 billion while net profit attributable to shareholders declined by 4 76% YoY to RMB 683 million [1] - The company's adjusted net profit margin in H1 2024 was 13 6% down 0 4 percentage points YoY due to increased sales and R&D expenses [3] Valuation and Forecast - The report forecasts Smoore's revenue to grow to RMB 14 024 billion in 2025 and RMB 15 702 billion in 2026 with adjusted net profit expected to reach RMB 1 891 billion and RMB 2 164 billion respectively [3] - Smoore's PE ratio is projected to be 31 6x 30 8x and 27 6x for 2024 2025 and 2026 respectively [3]

Investment Rating - Buy rating maintained for Smoore International (6969 HK) [4] Core Views - Smoore International reported H1 2024 revenue/net profit/total comprehensive income of RMB 5 037/683/725 million down 2%/5%/1% YoY [2][5] - Self-branded business grew strongly with Q2 pod product sales recovering and showing growth momentum [6] - R&D investments in HNB and atomization products driving long-term growth [7] Revenue Analysis - TOB business revenue declined 12% YoY in H1 2024 accounting for 78% of total revenue [6] - US/China/Europe & other regions revenue changed -10%/+41%/-16% YoY respectively [6] - Disposable/pod & HNB/APV product revenue was RMB 1 217/2 704/1 116 million changing -19%/-9%/+72% YoY [6] - US pod product revenue grew 6 1% QoQ and 6 5% YoY in Q2 [6] - Europe & other regions pod product revenue surged 93 2% QoQ and 22 5% YoY in Q2 [6] - TOC business revenue jumped 72% YoY in H1 2024 with share rising 9pcts to 22% [6] - US/Europe & other regions revenue increased 20 6%/88 0% YoY [6] - New XROS 4 product became a market hit [6] - VAPORESSO brand strengthened its leading position in open system products [6] Profitability Analysis - Gross margin improved 1 8pcts to 38 0% in H1 2024 driven by [6] - Higher-margin self-branded products gaining share [6] - Lower-margin disposable products declining [6] - Net profit declined 5% YoY in H1 2024 due to [6] - Sales expense ratio up 3 3pcts to 7 4% from international market expansion and new product launches [6] - R&D expense ratio up 3 1pcts to 15 1% from increased investments in medical atomization and HNB [6] - Management expense ratio down 2 4pcts to 6 7% from cost control and efficiency improvements [6] R&D and Growth Prospects - HNB R&D spending increased 15% YoY in H1 2024 with differentiated product solutions developed [7] - Atomization product R&D spending accounted for 24 4% of total in H1 2024 up from 18 5% in H1 2023 [7] - Launched MOYAL skincare brand and first-generation atomization beauty product solution in Q1 2024 [7] - Completed development of several drug delivery devices for asthma and COPD and 10+ drug formulations in H1 2024 [7] - Leading compliant brands expected to gain market share amid tightening regulations [7] - Key client VUSE held 51 2% US market share (closed system and disposable products) as of H1 2024 [7] - Forecast 2024-2026 net profit of RMB 1 660/1 910/2 160 million with PE of 29/25/22X [7]

Investment Rating - The report maintains a "Buy" rating for Smoore International Holdings (6969.HK) with a target price of HKD 10.7, indicating a potential upside of 17% from the current price of HKD 9.12 [3][4]. Core Insights - Smoore's revenue for the first half of 2024 was HKD 50.3 billion, a year-on-year decrease of 1.7%, while net profit was HKD 6.8 billion, down 4.8% year-on-year. The gross margin improved to 38%, up 1.8 percentage points, while the net margin slightly decreased to 13.6%, down 0.4 percentage points [1]. - The company's proprietary brand products saw significant growth, with APV product revenue reaching HKD 11.1 billion, a 72% increase year-on-year. The European market experienced an 88% revenue growth, while the U.S. market grew by 20% [1]. - The report anticipates a recovery in the domestic market, with a 41% year-on-year increase in revenue from 2B products in China, suggesting that the compliant market has likely bottomed out [1]. Financial Performance Summary - Revenue and Profit Forecasts: The expected net profits for 2024, 2025, and 2026 are HKD 16.5 billion, HKD 19.0 billion, and HKD 21.0 billion, respectively, with corresponding EPS of HKD 0.29, HKD 0.34, and HKD 0.38 [1][7]. - Sales and Cost Structure: The sales expenses increased significantly by 70% to HKD 7.6 billion, primarily due to increased marketing investments in proprietary brands and beauty products. Management expenses decreased by 27% to HKD 3.4 billion [1][15]. - R&D Investment: R&D expenses for the first half of 2024 were HKD 7.6 billion, accounting for 15.1% of revenue, reflecting a year-on-year increase of 3.1 percentage points. The company is focusing on medical and beauty product development, with a 63% increase in related R&D spending [1][15]. Market Dynamics - The report highlights a shift in European regulations favoring refillable products, which is expected to boost demand for Smoore's products in the region. The company's 2B business in Europe and other markets saw a revenue decline of 16% due to stricter regulations on disposable products, but the demand for refillable products is anticipated to recover [1]. - In the U.S. market, Smoore has the highest number of PMTA certifications among its clients, which is expected to enhance its market position as regulatory enforcement strengthens [1]. Valuation Analysis - The report employs DCF and PE valuation models, estimating a fair valuation of HKD 66.1 billion, corresponding to a target price of HKD 11.1. The average PE for the electronic cigarette industry is projected at 11.3x for 2025, and considering Smoore's market leadership, a PE of 30x is applied for 2025, leading to a target price of HKD 10.2. The final target price of HKD 10.7 reflects a blend of these valuation methods [7][10].

Investment Rating - The report suggests maintaining attention on the company due to its strategic clarity and solid fundamentals [2]. Core Insights - The company reported a revenue of 5.037 billion RMB for the first half of 2024, a year-on-year decrease of 1.7%. However, gross profit increased by 3.2% to 1.915 billion RMB, while net profit fell by 4.8% to 683 million RMB [1]. - The self-owned brand (APV) business saw significant growth, contributing 1.12 billion RMB in revenue, a year-on-year increase of 71.9%. The European and other markets experienced a rapid rise of 88%, while the US market grew by 20.6% [1]. - The company is focusing on cost management, with distribution and sales, administrative, and R&D expense ratios at 7.4%, 6.7%, and 15.1% respectively, showing changes of +3.3pp, -2.4pp, and +3.1pp year-on-year [1]. - The ODM segment aimed at enterprise clients is in a recovery phase, with reported revenue of 3.92 billion RMB. The European market saw a decline of 16%, while the US market decreased by 9.8%. In contrast, the Chinese market experienced a growth of 41.4% [1]. - The company continues to innovate, launching the MOYAL brand and developing products for asthma and COPD drug delivery systems [2].

即时点评 毛利率改善，自有品牌(APV)营收贡献增长 思摩尔国际(6969.HK) 2024-08-21 星期三 事件： 思摩尔国际公布 2024 年中期业绩，公司营收 50.37 亿元人民币，同比 下降 1.7%；毛利为 19.15 亿元人民币，同比增长 3.2%；净利润为 6.83 亿元人民币，同比下降 4.8%。 点评： 自有品牌(APV)贡献增长，毛利率改善： 相关报告 公司自有品牌业务占比上升，报告期收入 11.2 亿元人民币，同比上升 71.9%。其中，欧洲及其他市场上涨较快，同比上升 88%，美国市场同 比上升 20.6%，主要得益于公司全面推行数字化的管理，直达消费者 快速反映市场的需求。公司持续进行成本管理，24H1 公司分销及销售、 行政、研发费用率分别为 7.4%、6.7%、15.1%，同比+3.3pp、-2.4pp、 +3.1pp。分销及销售费用上升主要系公司增加本地化推广和新产品推 广所致；研发费用上升主要系公司加大雾化医疗和加热不燃烧产品的 投入所致。 面向企业客户(ODM)板块有待恢复： 公司面向企业客户报告期收入 39.2 亿元人民币，其中欧洲市场收入同 比下降 16%，美国市 ...

证券研究报告 | 半年报点评 gszqdatemark 2024 08 21 年 月 日 思摩尔国际（06969.HK） APV 表现靓丽，换弹式恢复稳增，多元结构共驱成长 公司发布 2024H1 财务数据：24H1 实现收入 50.37 亿元（同比-1.7%）， 全面收益总额为 7.25 亿元（同比-1.3%）；单 Q2 我们预计收入约实现 28 亿元（同比约+9%），全面收益总额为 4.15 亿元（同比-3%）。APV 延续 靓丽表现，换弹式稳步复苏，收入逐季改善；盈利略承压主要系研发投入 加大。 自主品牌表现靓丽。2024H1 APV 实现收入 11.16 亿元（同比+71.9%）， 其中欧洲及其他地区/美国分别实现收入 9.29 亿元（同比+88.0%）/1.87 亿元（同比+20.6%），表现靓丽主要系全新数字化运营赋能、高速洞察终 端需求，H1 成功推出爆款 XRO 4，目前自有品牌 Vaporesso 已在开放式 产品中成为市场头部品牌。 换弹业务改善，一次性小烟阶段性承压。2024H1 代工业务实现收入 39.22 亿元（同比-12.3%），分地区来看： 美国：H1 代工实现 18.58 亿元 ...

Investment Rating - The report maintains a "Buy" rating for Smoore International (06969) with a target price of 8.54 HKD, indicating a potential upside of over 20% [1]. Core Insights - The company reported a revenue of 5.037 billion HKD for the first half of 2024, a year-on-year decrease of 1.7%, and a net profit of 683 million HKD, down 4.8% year-on-year [1]. - The retail customer sales segment (APV) saw a significant revenue increase of 71.9% year-on-year, driven by strong performance in Europe and other markets, while the enterprise customer sales segment (ODM) experienced a decline of 12.3% [1]. - The company is focusing on expanding its product range and reducing costs, which has positively impacted its gross margin, which increased by 1.8 percentage points to 38.0% [1]. Revenue Breakdown - For 2024H1, the revenue from retail customer sales (APV) was 1.116 billion HKD, accounting for 22.1% of total revenue, while enterprise customer sales (ODM) generated 3.922 billion HKD, making up 77.9% of total revenue [1]. - The sales distribution by region shows that Europe and other markets accounted for 45.4% of total sales, followed by the US at approximately 36.9%, with a year-on-year decline of 3.3 percentage points [1]. Research and Development - The company increased its R&D expenditure to 760 million HKD in 2024H1, representing a year-on-year growth of 23.7%, which constitutes 15.1% of total revenue [1]. - Significant investments were made in the development of new products, including the launch of the MOYAL brand and innovative vaping solutions [1]. Profit Forecast and Investment Advice - The report projects net profits for 2024-2026 to be 1.675 billion HKD, 2.152 billion HKD, and 2.603 billion HKD respectively, reflecting year-on-year growth rates of 1.82%, 28.48%, and 20.94% [1]. - The report emphasizes the company's competitive advantages in the vaping technology sector and suggests that the tightening regulations will benefit leading brands like Smoore [1].