HK Stock Market Move | SMOORE INTL(06969) continues to fall by over 8% with a 36% year-on-year decline in first quarter net profit. The market is concerned about the impact of tariffs on its US export business.

SMOORE INTL (06969) falls over 8% again, as of press time, down 8.01% at 8.96 Hong Kong dollars, with a turnover of 58.026 million Hong Kong dollars. In terms of news, SMOORE INTL announced that the group achieved a net profit of 192 million yuan for the three months ending March 31, 2025, a decrease of 43.4% year-on-year; the total comprehensive income for the period was 208 million yuan, a decrease of 32.9% year-on-year. The decrease in net profit is mainly due to a significant increase in administrative expenses, distribution and sales expenses, and R&D expenses compared to the same period last year. Sinolink previously pointed out that under the background of U.S. tariffs, the market is more concerned about the impact of SMOORE INTL's U.S. export business. We believe that the subsequent impact should be viewed rationally for the following reasons: Smoore has factories in Indonesia, and Southeast Asian countries are expected to negotiate adjustments with the United States, with uncertainties about the extent of future tariffs; as e-cigarettes are a category with high price markups and consumer stickiness, tariffs may be passed on to end consumers to a certain extent, although the price increase is not significant; as a technology-driven enterprise, Smoore has strong bargaining power in the industry chain.