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].
思摩尔国际：中国内地市场触底反弹，海外市场合规优势凸显有望实现高增！