SMOORE INTL (06969) saw a rebound of over 6%. As of the time of writing, the stock was up 5.54%, trading at HKD 11.44, with a turnover of HKD 294 million.

The rebound comes amid significant recent adjustments to the export tax rebate policy for e-cigarettes. SDIC Securities International believes this adjustment will substantially impact the e-cigarette manufacturing sector, potentially leading to a new round of industry reshuffling.

While SMOORE INTL, which has deep ties with leading brands, may see short-term performance affected by the policy change, its market position is expected to be further solidified in the long run. The phase-out of tax rebate benefits is also seen as conducive to helping the industry gradually escape the quagmire of price wars.

Huafu Securities added that as international tobacco giants' HNB (heat-not-burn) products enter mainstream markets, the company's related new tobacco product sales in new regions are expected to contribute incremental growth. Markets like the UK and other European regions are anticipated to shift towards more profitable pod-based and open-system e-cigarettes. Furthermore, significantly strengthened global e-cigarette enforcement, particularly in the US, leaves substantial room for the recovery of market share for compliant products.