External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

Smoore International Holdings / Equity Bottom-Up

<ul><li>Net profit of RMB717mn came in at the low end of the pre-announcement, when revenue reportedly stood at a 9.4% YoY decline to RMB5.1bn.</li><li>A large part of the decline was explained by an 81.5% YoY tumble in China revenue to RMB393mn (or 96.3% YoY to RMB62mn should we excluding re-exporters), as a result of the enactment of the new national standard governing e-vapor, together with other market malignant practices.</li><li>From here, China revenue only represents only 1.2% to the total, and will no longer move the needle. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Net profit of RMB717mn came in at the low end of the pre-announcement, when revenue reportedly stood at a 9.4% YoY decline to RMB5.1bn.A large part of the decline was explained by an 81.5% YoY tumble in China revenue to RMB393mn (or 96.3% YoY to RMB62mn should we excluding re-exporters), as a result of the enactment of the new national standard governing e-vapor, together with other market malignant practices.From here, China revenue only represents only 1.2% to the total, and will no longer move the needle. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Smoore Int’l (6969 HK) – 1H Rev/Np -9%/-48%; Potential Turn-Around by 2024

<ul><li>Smoore reported 1Q rev/ net profits at RMB2.5b/300mn, tracking below our full year estimates at only 16%/10%, respectively.</li><li>By region, China revenue was down 98% YoY while that of overseas was up 58%, thanks to strong sales of disposable refillers in Europe.</li><li>Although weakness in the China market was very much expected (as fruit flavoured refillers were still legal in 1Q22), the magnitude of decline is more severe than our/ market’s expectation of a c80-90% decline.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Smoore reported 1Q rev/ net profits at RMB2.5b/300mn, tracking below our full year estimates at only 16%/10%, respectively.By region, China revenue was down 98% YoY while that of overseas was up 58%, thanks to strong sales of disposable refillers in Europe.Although weakness in the China market was very much expected (as fruit flavoured refillers were still legal in 1Q22), the magnitude of decline is more severe than our/ market’s expectation of a c80-90% decline.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Smoore Int’l (6969 HK) – 1Q tracking below us on weak domestic sales

<ul><li>A slow start for China in 2023, when Jan and Feb retail sales were cannibalized by unlawful refills under the new regulatory regime, according to our channel check.</li><li>While regulators have been actively combating any illegal distributions, we are hopeful of seeing compliant refills (i.e. tobacco flavored) to recover from 2Q onwards.</li><li>However, we remain cautious in China revenue and expect a small YoY decline.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

A slow start for China in 2023, when Jan and Feb retail sales were cannibalized by unlawful refills under the new regulatory regime, according to our channel check.While regulators have been actively combating any illegal distributions, we are hopeful of seeing compliant refills (i.e. tobacco flavored) to recover from 2Q onwards.However, we remain cautious in China revenue and expect a small YoY decline.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Smoore Int’l (6969 HK) – Operational Challenges Remain

Thematic (Sector/Industry)

<ul><li>3Q wrapped up with 2 beats, 2 in-lines and 2 misses. We revised our 2022E earnings forecasts by -1 to -23%, and that put us roughly 5-25% below consensus.</li><li>In our view, risks are still skewed to the downside, barring any sporadic lockdowns.</li><li>When policy rhetoric is not turning, we again see grounds on the enforcement of “stay put for the holiday” for the coming CNY holiday.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

3Q wrapped up with 2 beats, 2 in-lines and 2 misses. We revised our 2022E earnings forecasts by -1 to -23%, and that put us roughly 5-25% below consensus.In our view, risks are still skewed to the downside, barring any sporadic lockdowns.When policy rhetoric is not turning, we again see grounds on the enforcement of “stay put for the holiday” for the coming CNY holiday.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Consumer – Lacklustre 4Q22E Outlook Despite Any Short-Lived Rally; Top Buy CRB/ Proya/ CTGDF

<div><div><div><div><ul><li>A non-eventful 3Q. While earnings cuts and de-ratings have taken place and reset market expectation across 1H results, in our view, earnings volatility for 3Q is unlikely to be drastic.</li><li>For items that we monitored, our channel checks suggested that sales momentum was largely on track to us - low-teen growth for CRB, double-digit growth for Nongfu, and particularly sequential double- digit recovery for Mengniu and Feihe.</li><li>Separately, the lockdown of Hainan since August could mean downside revision potential for CTGDF despite a well-maintained GPM.</li></ul></div></div></div></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

A non-eventful 3Q. While earnings cuts and de-ratings have taken place and reset market expectation across 1H results, in our view, earnings volatility for 3Q is unlikely to be drastic.For items that we monitored, our channel checks suggested that sales momentum was largely on track to us - low-teen growth for CRB, double-digit growth for Nongfu, and particularly sequential double- digit recovery for Mengniu and Feihe.Separately, the lockdown of Hainan since August could mean downside revision potential for CTGDF despite a well-maintained GPM.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Consumer – Addressing Recent Investors’ Concerns

China

Smoore International Holdings Limited offering vaping technology solutions with advanced research and development technology. The Company manufactures and produces closed system vaping devices, self branded open system vaping devices, vaping components, and other products. Smoore International Holdings markets its products throughout Hong Kong.

Smoore International Holdings (6969 HK)

Smoore Int’l (6969 HK) – 1H Rev/Np -9%/-48%; Potential Turn-Around by 2024

Net profit of RMB717mn came in at the low end of the pre-announcement, when revenue reportedly stood at a 9.4% YoY decline to RMB5.1bn.

CMB International

Smoore Int’l (6969 HK) – 1Q tracking below us on weak domestic sales

Smoore reported 1Q rev/ net profits at RMB2.5b/300mn, tracking below our full year estimates at only 16%/10%, respectively.

CMB International

Smoore Int’l (6969 HK) – Operational Challenges Remain

A slow start for China in 2023, when Jan and Feb retail sales were cannibalized by unlawful refills under the new regulatory regime, according to...

CMB International

China Consumer – Lacklustre 4Q22E Outlook Despite Any Short-Lived Rally; Top Buy CRB/ Proya/ CTGDF

3Q wrapped up with 2 beats, 2 in-lines and 2 misses. We revised our 2022E earnings forecasts by -1 to -23%, and that put us roughly 5-25% below...

CMB International

China Consumer – Addressing Recent Investors’ Concerns

A non-eventful 3Q. While earnings cuts and de-ratings have taken place and reset market expectation across 1H results, in our view, earnings...

CMB International