HK Stock Market Move | SMOORE INTL (06969) rebounds by over 6%, export tax rebate reduction is beneficial for the electronic cigarette industry to gradually move away from price wars.

SMOORE INTL (06969) rebounds more than 6%, as of press time, up 5.54% to 11.44 Hong Kong dollars, with a turnover of 2.94 billion Hong Kong dollars. On the news front, there has been a major adjustment in the export tax rebate policy for electronic cigarettes in recent days. Guotou Securities International believes that this adjustment will have a significant impact on the electronic cigarette manufacturing industry, bringing about a new round of reshuffling in the industry. Although SMOORE, which is closely tied to top brands, will be affected by the tax rebate policy in the short term, its position will be further consolidated in the long run. The reduction in tax rebates is also conducive to the industry gradually moving out of the price war quagmire. Huafu Securities, on the other hand, stated that with the entry of international tobacco leader HNB products into the mainstream market, the company's related new tobacco products are expected to contribute incremental sales in new regions. The UK and other European regions are expected to switch to more profitable pod-based and open systems; globally, especially in the United States, enforcement of electronic cigarette regulations has significantly increased, providing significant room for compliant products to regain market share.