On August 31, SMOORE INTL fell 3.14% in regular trading, trading at HK$10.82, with turnover of approximately HK$34.12 million. The pullback follows a sharp post-earnings rally that saw the stock surge nearly 14% on August 26, suggesting short-term profit-taking at elevated levels.

The company reported first-half revenue of RMB 7.209 billion, up 19.9% year-over-year and a record high, driven by strong ToB business growth of 24.7% and a standout 322.1% surge in HNB product revenue. However, profitability lagged significantly — adjusted net profit rose only 2.6% to RMB 757 million, while gross margin contracted 5.1 percentage points to 32.2%. The adjusted net margin fell 1.8 percentage points year-over-year to 10.5%, weighed by elevated R&D spending and losses from the medical vaporization segment.

Multiple brokerages maintained buy-equivalent ratings but flagged near-term margin headwinds. Daiwa raised its target price to HK$9.4 while keeping a hold rating, lifting profit forecasts by over 30% after the better-than-expected interim results. The U.S. market saw revenue decline 15.6% due to a key client's product mix adjustment, though flavor e-cigarette sales are expected to begin from Q3.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)