HK Stock Market Move | SMOORE INTL (06969) fell more than 4% in the afternoon, Eve Energy Co., Ltd. plans to reduce its stake in SMOORE by 3.5%, and the valuation of the Daiwa index already reflects the potential.

SMOORE INTL (06969) fell more than 4% in the afternoon, closing down 3.94% at HK$8.3 with a turnover of HK$234.605 million. On the news front, Eve Energy Co., Ltd. announced earlier this month that its wholly-owned subsidiary EBIL plans to reduce its stake in SMOORE INTL by no more than 3.5% within the next 12 months. The announcement stated that the funds from the divestment will be used for the company's research and development platform construction and production capacity investment, focusing on the lithium battery business. It is worth noting that this is the fifth consecutive year that Eve Energy Co., Ltd. has claimed it will reduce its stake in SMOORE INTL, but the previous three times were not implemented. Daiwa recently released a research report stating that it has downgraded its investment rating on SMOORE INTL from 'outperform' to 'hold', using a target price of 27 times the average earnings per share for 2026 to 2027 for valuation, reducing the target price from HK$17 to HK$7.6. The bank believes that electronic cigarette products are expected to bring sales surprises, and customers of heated tobacco products (HNB) will offset the destocking impact of British American Tobacco in the Japanese market, although the valuation already reflects the medium to long-term potential.