Yinghe Technology received an overweight rating from Zhongtai Securities: E-cigarette business revenue will exceed 3.341 billion yuan in 2023, and monthly shipments will exceed 20 million units

Yinghe Technology received an overweight rating from Zhongtai Securities: E-cigarette business revenue will exceed 3.341 billion yuan in 2023, and monthly shipments will exceed 20 million units

Zhongtai Securities conducted research on Yinghe Technology (300457) and released a research report "Lithium battery equipment leader, solid-state battery equipment and e-cigarette business continue to benefit". This report gives an overweight rating to Yinghe Technology (300457).

On May 4, Zhongtai Securities conducted research on Yinghe Technology (300457) and released a research report "Lithium battery equipment leader, solid-state battery equipment and e-cigarette business continue to benefit". This report has a positive impact on Yinghe Technology (300457) gives an overweight rating.

The e-cigarette ODM business is expected to become the company's second growth curve. The e-cigarette business is mainly based on brand business, providing customers with products such as e-cigarettes, cartridges, atomizers and other e-cigarette accessories. Yinghe Technology's e-cigarette business has achieved rapid growth in 2023, with operating income reaching 3.341 billion. Yuan, accounting for 34% of the company's total operating income.

The e-cigarette products provided by the company's Skoll subsidiary have won widespread favor among European users for their rich flavors and high quality. In particular, the SKE brand has performed particularly well in the British market, with its market share continuing to soar. Skoll's brand business in the UK and other European countries has achieved breakthrough development. In August 2023, SKE's market share in the UK has increased to third place.

Yinghe Technology has more than 5,000 employees and has established a Shajing branch with a manufacturing industry base of more than 20,000 square meters to ensure high-quality output of products, with monthly shipments of more than 20 million units. On September 21, 2022, the company's e-cigarette subsidiary Skoll has obtained a tobacco monopoly production enterprise license, which will help to take advantage of industrial development opportunities to further expand the expansion and layout of new tobacco markets at home and abroad.

The company actively expands overseas markets, especially setting up a wholly-owned subsidiary in the UK to speed up the TPD certification of new products and increase market share.

Although the e-cigarette business is developing rapidly, the company also warned of potential policy risks. Since the new tobacco industry is in its early stages of development, domestic and foreign policy changes may affect business development.

Yinghe Technology has covered the company with an "overweight" rating for the first time. It is expected that the company's net profit attributable to the parent company will continue to grow in the next few years, benefiting from the development of new technologies and the expansion of overseas markets.

Zhongtai Securities concluded that Yinghe Technology's e-cigarette business has occupied a place in the global market through continuous product innovation and market expansion, showing good market competitiveness and growth. At the same time, the company is also actively responding to possible policy and market risks to maintain the continued and healthy development of the business.