UBS has issued a research report stating that it maintains its forecast for SMOORE INTL's recurring net profit this year, but has lowered projections for 2027 and 2028 by 6% and 10%, respectively. The target price has been reduced from HK$11.25 to HK$7.8, with a "Sell" rating reaffirmed. Last year, revenue increased by 21% year-over-year to RMB 14.256 billion, but gross margin fell by 210 basis points to 10.7%, indicating a significant deterioration. Management anticipates flat recurring profit in 2026, with revenue achieving double-digit growth, which falls short of market expectations for a 30% year-over-year rise in net profit. This suggests ongoing pressure on profit margins and potential risks in business execution.