HK Stock Market Move | SMOORE INTL (06969) fell more than 4% in early trading, and the clearance of non-compliant products may have a short-term impact on the overall growth of the European and American atomized electronic cigarette market.

SMOORE INTL (06969) fell more than 4% in the morning session, falling 3.4% to HKD 12.52 by the time of reporting, with a trading volume of HKD 75.0475 million. On the news front, the FDA has recently issued consecutive announcements to strengthen enforcement and management, with the head of the FDA's Center for Tobacco Products emphasizing the continued crackdown on illegal e-cigarettes through the All Government approach. Therefore, there may be cases where illegal e-cigarettes are investigated in the future; the UK is expected to be under pressure due to policy impact, but it is expected to switch to more profitable pod and open systems. Sealand pointed out that the clearance of non-compliant products may have a short-term impact on the overall growth of aerosol e-cigarettes in Europe and the United States, but compliant products and companies will benefit from it. China Securities Co., Ltd. stated that SMOORE INTL's major customer British American Tobacco has recently launched a groundbreaking new product, glohilo, in Serbia; the company has been heavily investing in the field of heat-not-burn technology for many years and is expected to benefit from the volume of new products launched by major customers. UBS, on the other hand, expects British American Tobacco to officially launch this new product in the second half of this year, with actual results possibly observable after next year. The bank believes that SMOORE's stock price is overvalued.