SMOORE INTL (06969) dropped more than 8% in early trading, now halved from its yearly high of HK$23.92. At the time of writing, the stock was down 7.65% to HK$11.34, with a trading volume of HK$313 million.

The decline follows British American Tobacco PLC (BTI.US), a key client of SMOORE INTL, issuing a subdued earnings outlook for 2026. The company expects its performance to be at the lower end of its mid-term targets due to regulatory pressures and intense competition in the U.S. e-cigarette market, offsetting strong growth in other business segments.

British American Tobacco CEO Tadeu Marroco also highlighted additional challenges for next year, including stricter tobacco regulations in Australia and continued investments in emerging product categories, which may further constrain profit growth.

According to the latest guidance, British American Tobacco anticipates 2026 revenue growth at the lower end of its 3%-5% mid-term target range, with adjusted operating profit growth projected at 4%-6%.