Changes in Hong Kong stocks | SMORE International (06969) rose more than 4% in early trading, positive feedback on trial sales of HNB products is expected to drive profit growth in the second half of the year

The Zhitong Finance App learned that Smore International (06969) rose more than 4% in early trading. As of press release, it had risen 3.25% to HK$13.96, with a turnover of HK$49.23,900.

First Shanghai pointed out that Glo Hilo, a heated non-combustible (HNB) product supplied by SMOORE International to British American Tobacco, has received positive feedback from trial sales, and its usage experience and taste have improved compared to existing mainstream products. According to the strategic plan, the product will fully enter the core market in 2025 and is expected to bring continuous profit growth to the company starting in the second half of 2025. It is expected that by 2026, as the market penetration rate increases and the customer base expands, the HNB business will show strong development momentum and profit potential.

Oriental Wealth Securities previously stated that in '24, Smore International's business exposure to the US was 4.41 billion yuan, accounting for 37% of revenue in '24, of which ODM was 3.99 billion yuan and its own brand was 420 million yuan. First, this category has high mark-up rates and high stickiness, and part of the tariff costs can be transferred to terminals; secondly, with its technical advantages and production capacity advantages, the company is expected to smooth out tariff pressure. As a technology-driven company, SMOORE has certain bargaining power in the industrial chain, and the company lays out production capacity in Indonesia and other places, which can ease tariff pressure to a certain extent.