SMOORE INTL (06969) declined over 7% again, hitting an intraday low of HK$15.85, representing a drop of more than 30% from its year-high of HK$23.92. As of press time, the stock was down 6.62% to HK$16.08, with trading volume reaching HK$261 million.

UBS released a research report stating that it recently met with Japan Tobacco management in Tokyo and held an investor meeting with SMOORE INTL management in Shenzhen. While the US has intensified its crackdown on illegal e-cigarettes since early 2025, feedback from field visits suggests that the impact of US enforcement may be diminishing due to inconsistent enforcement efforts. This is confirmed by Chinese customs data, which shows a 39% increase in e-cigarette exports in August, indicating that Chinese e-cigarette exporters are adapting to US enforcement measures.

UBS expects SMOORE INTL's revenue to grow 20% year-over-year in 2025, primarily driven by e-cigarette sales. However, due to rising R&D and sales expenses as well as gross margin pressure, net profit is projected to decline 40% year-over-year. The firm's net profit forecasts for 2025-27 are 18-45% lower than market consensus.

UBS maintains a "Sell" rating on SMOORE INTL with a target price of HK$13.11.