Jinwu Financial News | According to Tianfeng Securities Research Report, China's Bolton (03318) announced the 2023 annual results. In 2023, the company achieved revenue of 2,064 billion yuan, a year-on-year decrease of 11.2%; realized net profit of 141 million yuan, an increase of 66.5% over the previous year. The revenue side was affected by the policy and pressured in the short term, and the profit side benefited from corporate restructuring.
The bank believes that since the national standard for e-cigarettes was implemented on October 1, 2022, the domestic e-cigarette production and sales system has officially entered the era of compliance. Furthermore, the implementation of the tax system has further established the legal status of e-cigarette products, and it is expected that domestic tobacco profits will be added and increased in the future. With the successive clarification of domestic and foreign regulations, it will effectively push up the industry threshold, increase concentration, and gradually optimize the competitive pattern of the industrial chain, and the industry is expected to enter a new stage of compliance development.
The bank believes that with the implementation of domestic regulations, the integrated layout of the company's industrial chain has outstanding advantages, which is expected to further promote the layout of domestic and foreign channel networks. Due to the impact of China's new policy to control the sales of e-cigarette products and fragrances, the company's e-cigarette product revenue is under pressure in the short term. The bank expects the company's 24-26 revenue to be 25.2/27.6/3.07 billion yuan (31.5/3.56 billion yuan before 24/25) and net profit of 2.7/3.56 billion yuan (the value was 37/410 million yuan before 24/25). Based on the company as a listed company that simultaneously lays out the domestic e-cigarette industry chain and flavors, it has a certain scarcity and maintains a “buy” rating.