UBS: Raised SMOORE INTL (06969) target price to HK$14, maintaining "sell" rating.

UBS released a research report stating that it has updated profit forecasts for SMOORE INTL(06969) for the years 2025 to 2027 to -21%, +1%, and +21%, respectively. The reasons include higher revenue growth from ODM and HNB business, as well as increased sales, general, and administrative expenses due to intensified competition. UBS maintains a "sell" rating for SMOORE INTL, believing that its valuation is rich and already reflects the growth potential from Vapes and HNB. The target price has been raised from HK$10.7 to HK$14. The company's preliminary performance shows a year-on-year revenue growth of 18% in the first half of the year, which the bank believes is due to the recovery of the Vape business and increased shipments before the US tariff. The company expects a year-on-year decrease in net profit of 21% to 35% in the second half of the year, mainly due to high expenses related to stock options granted in the fourth quarter and S&D.