Smoore Intl 6969

[winston]

not vested

SMOORE INTL Annual NP Fades 34.5% to RMB1.645B; Final DPS HK5 Cents

SMOORE INTL (06969.HK) announced its annual results for the year ending 2023, with revenue of RMB11.168 billion, down 8% YoY.

It recorded net profit of RMB1.645 billion, down 34.5%, with an EPS of RMB27.01 cents.

A final dividend of HK5 cents was declared, versus HK8 cents over a year ago.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

vested

Daiwa Hikes SMOORE INTL (06969.HK) TP to $8, Looks forward to 2024 Profit Growth

The management of SMOORE INTL (06969.HK) expected double-digit revenue growth for 2024 after two years of revenue regression, Daiwa said in its report.

Earnings growth was estimated to slacken mainly due to continued investment in R&D of new products, and the product and revenue mix to be more diversified.

The broker envisaged the worst is over and reiterated Outperform on SMOORE INTL, with a target price raised from $6 to $8.

SMOORE INTL said the outlook for revenue growth in the U.S. and China remained highly dependent on regulatory rules.

The broker estimated that both markets will track a step forward in this year's recovery from last year's low base.

The broker raised its profit forecast for 2024 and 2025 by 1%-2% to reflect the higher revenue growth forecast.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

vested

BofAS Reduces TP of SMOORE INTL (06969.HK) to $5.4; 2023 Revenue Miss

BofA Securities highlighted in a report that SMOORE INTL (06969.HK) 's revenue fell 8% YoY to RMB11.2 billion last year, 8% lower than the prediction, mainly due to worse-than-expected sales of e-cigarettes and disposable products.

Net profit after tax fell 34.5% YoY to RMB1.65 billion, broadly in line with expectations.

The broker commented that SMOORE's sales in China this year are already at a low level, and a turnaround in sales is expected, driven by disposables, private label products and cannabidiol (CBD) products, although e-cigarette sales are likely to fall slightly again.

Earnings are expected to be broadly flat YoY on the back of lower gross margin expectations, higher marketing spend, and continued investment in R&D for healthcare and heat-not-burn (HNB) products.

BofAS lowered its adjusted EPS forecasts on SMOORE for 2024 and 2025 by 15% and 12% respectively, and chopped its target price from $6.3 to $5.4.

The broker kept its Underperform waiting, citing low visibility of profitability, unfavourable regulatory factors on e-cigarettes and disposable products, as well as a high P/E ratio of 23x for this year.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

vested

SMOORE INTL(6969)

Analysis：

In the three months ended March 2024, the company recorded an after-tax profit of RMB339.5 million, an increase of 12.8% year-on-year.

In the future, will launch differentiated innovative products in fields such as electronic vaping, heat-not-burn, atomization for special purpose, inhalation therapy and beauty atomization.

Apart from that, the company will also continue to expand the application of atomization technology, by which the company is able to bring sustainable returns with healthy growth in business.

Strategy：
Buy-in Price: $8.51, Target Price: $9.30, Cut Loss Price: $7.88

Source: Phillips

[winston]

vested

<Research>CICC Elevates SMOORE INTL (06969.HK) TP to $11.5 on Steadily Improving Varied Atomized Vape

CICC recently invited the management of SMOORE INTL (06969.HK) to join its 2024 mid-term strategy meeting to have an in-depth exchange of views on the Company's recent situation and future development strategy, which are of concern to the market, CICC released a research report saying.

CICC expected that, with the strengthening of regulation in Europe and the US, the sales of new products became better, with continuously strong overseas demand.

The subsequent growth of the varied vape of the Company is expected to rise steadily, and increase its global market share.

New businesses such as HNB, beauty atomization and medical care, are also expected to gradually enter the harvest period, which will open up the ceiling for medium- to long-term growth.

CICC maintained earnings forecasts unchanged, with current price corresponding to a PE ratio of 31x/ 26x for 2024/ 2025, with rating kept at Outperform.

CICC also elevated its target price by 47% to $11.5 on the basis of the expected success of the new businesses and broad development prospects.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

vested

<Research>Daiwa Downgrades SMOORE INTL (06969.HK) to Hold, Adds TP to $10

In a research report, Daiwa commented that the US FDA's approval of four menthol-flavoured e-cigarette products from e-cigarette brand NJOY on Friday (21 June) is believed to be a surprise to the market, overturning earlier market predictions that the FDA may be preparing to ban the sale of menthol-flavoured e-cigarettes in America.

Still, while being a major supplier of NJOY's products, Daiwa did not expect the earnings outlook of SMOORE INTL (06969.HK) to be affected too much.

Taking into account the possible sales growth in the US market in 2H24, the broker still considered SMOORE's forward P/E ratio of around 25x to be reasonable, and is now forecasting a 16% CAGR in earnings growth from 2023 to 2026.

Related News: CICC Elevates SMOORE INTL (06969.HK) TP to $11.5 on Steadily Improving Varied Atomized Vape

The broker raised its 2024-2026 earnings forecast on SMOORE by 8-14% to reflect the expected growth in revenue from sales of menthol-flavoured e-cigarettes, which is 7-13% higher than the consensus forecast.

Daiwa meanwhile downgraded SMOORE's rating to Hold and raised its target price to $10 from $8, believing that as its share price has already accrued nearly 80% over the past four months, investors may want to wait for a better opportunity to enter.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

<Results>SMOORE INTL Interim NP Drops 4.8% to RMB683M; Div. $5 Cents

SMOORE INTL (06969.HK) announced its interim results for the six months ended June.

Revenue amounted to RMB5.037 billion, down 1.7% YoY, while gross profit was RMB1.915 billion, up 3.2%.

Net profit amounted to RMB683 million, down 4.8%, with an EPS of RMB11.2 cents.

Interim dividend was maintained at $5 cents.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

vested

SMOORE INTL (06969.HK) Soars 3%+ as China Tobacco's New E-cigarette Rules Permit Independent Pricing by Enterprises

The State Tobacco Monopoly Administration (China Tobacco) has recently issued the "Notice on Revising and Issuing the Rules for the Administration of E-cigarette Transactions", stating that the ex-factory prices and suggested retail prices of e-cigarette products produced and sold in China will be determined independently by the e-cigarette product manufacturing enterprises and e-cigarette brand holding enterprises.

In addition, wholesale prices will be reasonably determined by e-cigarette wholesale enterprises based on ex-factory prices and taking into account operating management costs and national tax policies.

The note also indicates a commitment to establishing and improving a price formation mechanism mainly regulated by the market for e-cigarette products.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

vested

Aug 21, 2024

<Research>BofAS Cuts SMOORE INTL (06969.HK) TP to $6.8 as Interim Results Miss Forecasts

SMOORE INTL (06969.HK) 's interim results missed expectations, with sales/ adjusted net profit dropping 1.7%/ 1.3% YoY, which were lower than BofA Securities' original forecasts of lower-single-digit/ mid-single-digit growth respectively, BofA Securities issued a research report saying.

BofA Securities lowered its 2024/ 2025 EPS forecasts for SMOORE INTL by 3%/ 4% correspondingly, and cut its target price from $7 to $6.8.

Based on the favorable operating conditions in 2Q24, BofA Securities reiterated rating at Buy, and predicted that earnings could grow at a CAGR of 8% from 2023 to 2026.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

vested

<Research>Daiwa Cuts SMOORE INTL (06969.HK) TP to $9; 1H NP Misses

2024/08/21

According to a recent Daiwa report, SMOORE INTL (06969.HK) reported a net profit of RMB683 million in 1H24, weaker than the market's forecast of RMB752 million.

Nevertheless, management noted strong orders from BAT for its new-generation Pod-based e-cigarette products for 2H24, with continued strength in its APV business.

The broker, however, found management's confidence for 2H24 surprising as the group estimated that its revenue would grow at a high single digit or around 10% YoY in 2024.

The broker's estimates, however, were rather conservative as it was skeptical about government enforcement against illicit e-cigarettes, which would remain a key factor for a sustained turnaround in sales.

Daiwa trimmed its 2024-2026 EPS forecast for the group by 1%-3% to reflect the lowered revenue growth forecast, while reducing the TP from $10 to $9 and maintaining a Hold rating on the group.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news