Core Viewpoint - Smoore International (06969) shares rose over 6%, currently at HKD 21.64, with a trading volume of HKD 501 million, as the company prepares to discuss its mid-term performance and potential dividend distribution [1] Financial Performance - Smoore International anticipates a revenue of RMB 6.013 billion for the first half of 2025, representing an 18% year-on-year increase [1] - The company expects a pre-tax profit of approximately RMB 629 million to RMB 769 million, reflecting a decrease of 5% to 23% year-on-year, primarily due to increased non-cash share-based payment expenses of RMB 176 million, along with higher distribution, sales expenses, and legal service costs [1] Market Insights - UBS noted that the preliminary performance indicates an 18% year-on-year revenue growth, attributed to the recovery of the vape business, with increased shipments ahead of U.S. tariffs [1] - The company projects a 21% to 35% year-on-year decline in net profit for the second half, mainly due to high expenditures related to stock options and S&D in Q4 [1] - Zheshang Securities highlighted that British American Tobacco is heavily investing in resources and marketing for Glo Hilo, with positive trial feedback in Japan and early deployments in some European countries, maintaining a positive outlook for Smoore International as a core supplier [1]

Core Viewpoint - UBS has raised the target price for Smoore International (06969.HK) to HKD 14 while maintaining a "Sell" rating, citing a significant increase in revenue from ODM and HNB businesses, despite rising competition and associated costs [1] Financial Performance - The company reported a year-on-year revenue growth of 18% in the first half of the year, attributed to a recovery in the vape business and preemptive increases in shipment volumes ahead of U.S. tariffs [1] - UBS has updated its earnings forecasts for Smoore International for 2025 to 2027, with adjustments of -21%, +1%, and +21% respectively [1] Profit Outlook - The company is expected to see a year-on-year decline in net profit of 21% to 35% in the second half of the year, primarily due to high expenses related to stock options granted in the fourth quarter and S&D costs [1] Valuation - UBS maintains that Smoore International's valuation is rich and already reflects the growth potential from Vapes and HNB [1] - The target price has been increased from HKD 10.7 to HKD 14 [1]