SMOORE INTL (06969) saw its shares climb more than 5% during the morning trading session. By the time of writing, the stock was up 4.63%, trading at HK$11.52 with a turnover of HK$123 million. The move follows a recent announcement from the Ministry of Finance and the State Taxation Administration, which clarified that the value-added tax (VAT) export tax rebate for several product categories, including e-cigarettes, will be canceled effective April 1, 2026. A research report from Tianfeng Securities stated that this policy adjustment is viewed as a catalyst that will speed up industry consolidation, ultimately benefiting large, compliant enterprises with scale and technological advantages over the long term. Cinda Securities International also believes the change will significantly impact the e-cigarette manufacturing sector, triggering a new round of industry reshuffling. While SMOORE, which has deep ties with leading brands, may experience short-term earnings pressure from the policy shift, its market position is expected to strengthen further in the long run. The phase-out of the tax rebate incentive is also seen as beneficial for helping the industry gradually escape the quagmire of price wars.