Jinwu Financial News | According to Tianfeng Securities Research Report, Smore International (06969) released the 2024Q1 financial update. After preliminary review, the 2024Q1 company achieved profit after tax of 340 million yuan, an increase of 12.8% over the previous year, laying the foundation for the full year of 2024 performance growth. In the US market, judging from regulatory trends, the bank believes that the probability of “flavored products” going through the review is low. In the later stages, the US market may be dominated by tobacco flavors, and VuseAlto tobacco-flavored products are expected to be marketed later. With the general trend of “tobacco-like management” in the US e-cigarette market, the resources and technical reserves of big brands and companies can cope with rising entry thresholds and regulatory costs in the context of stricter regulations, and the competitiveness and market share of leading brands is expected to continue to increase.
The bank believes that as a global leader in providing atomization technology solutions, the company's barrier advantages continue to be highlighted. Against the backdrop of increasingly strict regulations, it is expected that the concentration of the industrial chain may increase at an accelerated pace. The bank expects the company's net profit for 2024-2026 to be 16.64/20.71/2,462 billion yuan, an increase of 1.16%/24.46%/18.88% year-on-year. Maintains a “buy” rating based on the company's technology and leading edge.