HK Stock Market Move | SMOORE INTL (06969) has risen by over 4% now, as overseas regulations tighten, benefiting compliance leaders. Domestic policy risks have been largely eliminated.

SMOORE INTL (06969) rose over 7% in intraday trading, and at the time of writing, it was up 4.3% at 10.7 Hong Kong dollars, with a trading volume of 2.14 billion Hong Kong dollars. Caitong pointed out that in the previous period, US synthetic nicotine products seized market share in compliance products, and with stricter regulations, there is potential for expansion in compliance business. At the same time, the HNB business is expected to contribute to incremental growth. Europe is also strengthening regulation of disposable products. On the domestic front, the bans on flavored cigarettes and the e-cigarette consumption tax have been implemented, signalling a policy bottom for the domestic market. With improvements in sales environment, upgrades in products to meet new national standards, and clearance of previous inventory, domestic sales are expected to improve. In the long term, the clearance of unqualified product capacity will promote market share concentration, benefiting leading companies in production, brands, and other aspects. The bank stated that as a global leader in electronic cigarette OEM, Smoore continues to deepen its cooperation with overseas clients, benefiting from the rapid growth in demand for new tobacco products overseas. Domestic policy risks have been largely resolved, and sales are expected to gradually improve by season. The company's atomization technology is leading in the industry, actively expanding into multiple atomization areas, and is expected to achieve multiple successes in the atomization application field with strong product and brand power.