CITIC Securities determined that with the deepening cooperation with Smoore Intl (06969) and its major customers, its revenue growth is expected to be restored.
According to the report released by CITIC Securities, it maintains its 'buy' rating for Smoore Intl (06969). The company's major customer, British American Tobacco, announced that the revenue of the new tobacco product category is expected to achieve unit growth in the first half of the year, and double-digit growth will be achieved in the second half of the year after the launch of innovative products such as HNB. The bank determined that with the deepening cooperation between the company and its major customers, the revenue growth is expected to be restored.
The report stated that the PMTA approval of NJOY's four mint-flavored e-cigarettes releases a signal indicating a shift in the US regulatory attitude, and the bank determined that more mint-flavored e-cigarette products may be approved for listing in the future, which is bullish for the compliant e-cigarette product market in the United States. The bank estimates that the revenue from NJOY for the company in 2023 is about 200 million yuan, accounting for 2% of the total revenue. With the help of Altria's channel advantages in obtaining approval, it is expected that the sales of NJOY will be boosted and the company will fully benefit.