Smoore International Falls Over 6% Again; H1 Net Profit Down Nearly 28%, Short-Term Profitability Pressured by Higher R&D Spending

Aug.28.2025
Smoore International Falls Over 6% Again; H1 Net Profit Down Nearly 28%, Short-Term Profitability Pressured by Higher R&D Spending
Smoore International (06969) continued to decline after its earnings release, falling more than 6% in early trading today. As of press time, the stock was down 5.08% at HK$19.23, with a turnover of HK$466 million.

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2Firsts reposts from Smartkarma Finance, August 28, 2025 —— Smoore International (06969) continued to fall following its earnings announcement, dropping more than 6% in early trading today. As of press time, it was down 5.08% at HK$19.23, with turnover reaching HK$466 million.

 

In terms of financials, Smoore reported interim results showing revenue of RMB 6.013 billion for the first half, up 18.3% year-on-year; adjusted net profit of RMB 737 million, down 2.1% year-on-year; and net profit of RMB 492 million, down 27.96% year-on-year. The interim dividend was HK$0.20 per share, compared to HK$0.05 in the same period last year. Bank of America Securities noted that Smoore’s performance was broadly in line with expectations. It forecast that full-year revenue growth would improve slightly, but profit margins would remain under pressure.

 

UBS released a research note pointing out that Smoore’s interim net profit decline was mainly due to higher share-based compensation, increased sales and development expenses, as well as higher taxes. Management remains optimistic about sustained revenue growth in the second half, supported by favorable vaping policies in the U.S. and Europe, but short-term profitability will continue to be pressured by higher R&D spending as the company prepares to launch its own products in the U.S. According to management, concrete financial results from new business segments—such as heated tobacco, inhalation therapies, and beauty atomization products—will not be reflected until 2027. UBS lowered its earnings forecast for 2025–2027 by 10%–33% to reflect higher sales, marketing, and R&D costs, cut its target price from HK$14.00 to HK$13.11, and maintained a “Sell” rating.

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