SMOORE INTL (06969) extended its rally, surging more than 6% in early trading. At the time of writing, the stock was up 5.84% to HK$10.52, with a turnover of HK$130 million.

On the news front, the company recently released its first-half results, posting record revenue of RMB 7.209 billion, a 19.9% year-on-year increase. Net profit came in at RMB 572 million, up 16.2% from the prior year. Management highlighted strong performance in the ToB segment, particularly the continued expansion of electronic atomization and HNB (heated-not-burn) businesses, which contributed approximately RMB 5.91 billion in revenue, up around 24.7% year-on-year.

According to analysts, the global tightening of regulations is expected to accelerate industry consolidation. The company's compliance capabilities, technological leadership, a healthy customer base, and flexible business model are strengthening its competitive moat, which could lead to further gains in market share. With the second growth curve, the HNB business, accelerating and emerging ventures in atomized medical and beauty products entering a ramp-up phase, the company's performance is poised for steady growth.