HK Stock Market Move | SMOORE INTL (06969) rose more than 5% as the FDA approved fruit-flavored electronic cigarettes for the first time. Compliant suppliers are expected to significantly benefit.

SMOORE INTL (06969) rose more than 5%, as of the press release, it rose 5.42% to HK$10.69, with a turnover of HK$58.2269 million. On the news side, a report from Cinda pointed out that following the approval of flavor flavors by the US FDA last week for the first time, the FDA this weekend released guidance on the enforcement priorities of unauthorized ENDS and nicotine pouch products, reiterating that all products without PMTA are illegal. The FDA also announced that it will establish a webpage listing the production enterprises and their products that meet the non-prior enforcement conditions. Cinda stated that after the US government restricted aerosol electronic cigarettes to only tobacco and menthol flavors, compliant industry leaders immediately removed flavored products. It is expected that compliant leading brands that have been continuously submitting flavor product PMTA in recent years (which have not yet been approved) will now be able to join the market directly and sell flavored products due to this policy adjustment. The bank predicts that with strong channels/products and other advantages, the market share of compliant industry leaders is expected to accelerate, and core suppliers are expected to benefit fully. It is expected that the future FDA regulatory direction will focus more on strict supervision of illegal activities and relaxation of compliant fruity flavors.