CITIC Securities released a research report maintaining a 'buy' rating for Smoore Intl. The company's major customer, British American Tobacco, recently announced that revenue from new tobacco product categories is expected to achieve unit growth in the first half of the year, and double-digit growth after the launch of innovative products such as HNB in the second half of the year. The bank's determine that with the deepening cooperation between the company and major clients, the income growth rate is expected to be repaired.
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.