UBS: Lowered target price of Sumo Group (06969.HK) to 13.11 HKD with a "Sell" rating.

According to the Citic Financial APP, UBS released a research report stating that the net profit of Smoore International (06969.HK) for the mid-term has declined, mainly due to an increase in stock-based compensation and an increase in sales and development expenses, as well as the impact of rising tax rates. Management is optimistic about the continued growth of revenue in the second half of the year, based on favorable policies for electronic cigarettes in the US and Europe, but the company's short-term profitability is still affected by increased research and development expenses as the company prepares to launch its own products in the US. According to management, the specific financial results of new business segments such as heating tobacco, inhalation therapy, and beauty atomization products will be reflected in 2027. The bank has lowered its profit forecast for the company from 10% to 33% for the years 2020 to 2027, reflecting higher sales, promotion and research and development expenses, lowering the target price from 14 Hong Kong dollars to 13.11 Hong Kong dollars, and maintaining a "sell" rating.