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UBS: Raises the target price for Smoore International to HKD 14, maintains "Sell" rating.
Jin10 data reported on July 21st that UBS released a report updating the profit forecasts for Smoore International (06969.HK) for 2025 to 2027 with changes of -21%, +1%, and +21%, respectively. The reasons include higher revenue growth from ODM and HNB businesses; as well as increased sales, general, and administrative expenses due to intensified competition. Preliminary performance shows that the company's revenue for the first half of the year grew by 18% year-on-year, which is believed to be due to the recovery of the Vape business, with shipments having been pre-increased before US tariffs. The company expects net profit for the second half of the year to decline by 21% to 35% year-on-year, mainly due to high expenditures related to the granting of stock options and S&D in the fourth quarter. UBS maintains a 'sell' rating on Smoore International, believing that its valuation is rich and has already reflected the growth potential from Vapes and HNB. The target price has been raised from HKD 10.7 to HKD 14.