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