HK Stock Market Move | SMOORE INTL (06969) is currently down over 5% due to short-term impact of tariffs on its US business profit, but its Indonesian factory is expected to smooth out the tariff effects.

SMOORE INTL (06969) is currently down by over 5%, with a 5.65% decrease to HK$11.36 as of press time, with a trading volume of HK$2.21 billion. East Money Information Securities pointed out that in 2024, SMOORE INTL's exposure to the US market is HK$4.41 billion, accounting for 37% of the revenue in 2024, with OEM at HK$3.99 billion and own brand at HK$0.42 billion. Firstly, this product category has a high markup and high stickiness, where part of the tariff costs can be passed on to the end consumer; secondly, with its technological and production capacity advantages, the company is expected to smooth out tariff pressures. As a technology-driven company, SMOORE INTL has a certain bargaining power in the industry chain, and with its production capacity layout in Indonesia and other regions, it can to some extent alleviate tariff pressures. Tianfeng believes that the mature production capacity of SMOORE INTL's factory in Indonesia is expected to smooth out the impact of tariffs. Meanwhile, in a context of increasingly stringent regulations, the concentration of the industry chain is expected to accelerate, and the company as a global leader in providing atomization technology solutions continues to demonstrate its competitive advantage. Cinda pointed out that the company is expected to smooth out tariff pressures by leveraging its scarce production capacity/product/technological advantages.