＜Research＞Daiwa Downgrades SMOORE INTL (06969.HK) to Hold, Adds TP to $10

　　In a research report, Daiwa commented that the US FDA's approval of four menthol-flavoured e-cigarette products from e-cigarette brand NJOY on Friday (21 June) is believed to be a surprise to the market, overturning earlier market predictions that the FDA may be preparing to ban the sale of menthol-flavoured e-cigarettes in America.

　　Still, while being a major supplier of NJOY's products, Daiwa did not expect the earnings outlook of SMOORE INTL (06969.HK) +0.230 (+2.312%) Short selling $17.65M; Ratio 5.027% to be affected too much. Taking into account the possible sales growth in the US market in 2H24, the broker still considered SMOORE's forward P/E ratio of around 25x to be reasonable, and is now forecasting a 16% CAGR in earnings growth from 2023 to 2026.

　　Related NewsCICC Elevates SMOORE INTL (06969.HK) TP to $11.5 on Steadily Improving Varied Atomized Vape

　　The broker raised its 2024-2026 earnings forecast on SMOORE by 8-14% to reflect the expected growth in revenue from sales of menthol-flavoured e-cigarettes, which is 7-13% higher than the consensus forecast.

　　Daiwa meanwhile downgraded SMOORE's rating to Hold and raised its target price to $10 from $8, believing that as its share price has already accrued nearly 80% over the past four months, investors may want to wait for a better opportunity to enter.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-06-24 16:25.)

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