SMOORE INTL (06969) saw its stock plummet 6.02% in early trading on Thursday, continuing its post-earnings decline. The significant drop comes on the heels of the company's recently released interim results, which revealed mixed financial performance and raised concerns among analysts about its short-term profitability.

According to the company's interim report, SMOORE INTL's revenue for the first half of the year grew by 18.3% year-over-year to RMB 6.013 billion. However, the company's bottom line took a hit, with net profit falling 27.96% year-over-year to RMB 492 million. Despite the profit decline, the company declared an interim dividend of HK$0.20 per share, up from HK$0.05 in the same period last year.

Analysts have expressed mixed views on SMOORE INTL's performance and outlook. Bank of America Securities stated that the results were broadly in line with expectations, anticipating slight improvement in full-year revenue growth but ongoing pressure on profit margins. UBS, on the other hand, took a more cautious stance, lowering its earnings forecasts for the company from 2024 to 2027 by 10% to 33%. UBS cited higher sales, marketing, and R&D expenses as key factors affecting profitability, particularly as the company prepares to launch its own products in the US market. Consequently, UBS reduced its target price for SMOORE INTL from HK$14 to HK$13.11, maintaining a "Sell" rating. The market's reaction to these analyst assessments and the company's financial results appears to be driving the current stock price decline.