HK Stock Market Move | SMOORE INTL (06969) fell more than 6% during the trading day. UBS pointed out that its valuation is too high and downgraded its rating to "Sell".

SMOORE INTL (06969) fell more than 6% intraday, down 3.48% as of writing, at HKD 12.74, with a turnover of HKD 3.19 billion. On the news front, UBS released a research report stating that they have downgraded Smoore's rating from "Neutral" to "Sell." This is mainly due to the high valuation and their relatively conservative view on the profit contribution of the new Heat-Not-Burn (HNB) product launched by their core customer, British American Tobacco (BAT). After BAT announced the launch of the new HNB product, Smoore's stock price has risen by about 35%, indicating investors are optimistic about its prospects. However, UBS expects BAT to officially launch this new product in the second half of this year, and actual results may not be seen until after next year. Currently, Smoore's stock price is trading at a 2025 P/E ratio of about 42 times, which is considered to be overvalued compared to the global tobacco industry average of 11 times and the Chinese consumer industry peer group at 34 times in 2025 P/E ratio.