Changes in Hong Kong stocks | SMORE International (06969) fell more than 4% in the afternoon and plans to reduce its holdings of SMOORE by 3.5%, and the valuation of Yamato Index already reflects potential

The Zhitong Finance App learned that Smore International (06969) fell by more than 4% in the afternoon. As of press release, it was down 3.94% to HK$8.3, with a turnover of HK$234.605 million.

According to the news, Everweft Lithium Energy announced at the beginning of this month that the wholly-owned Sun company EBIL plans to reduce its holdings of Smore International by no more than 3.5% within the next 12 months. According to the announcement, the funds from the holdings reduction will be used to build the company's R&D platform and invest in production capacity, focusing on the main lithium battery business. It is worth noting that this is the fifth year in a row that Everweft Lithium Energy has claimed to reduce its holdings in Smore International, but none of the previous three have actually been implemented.

Yamato recently released a research report stating that the Smore International Investment Rating was downgraded from “outperforming the market” to “holding”, and estimated at a target price-earnings ratio of 27 times the average earnings per share from 2026 to 2027. The target price was drastically cut from HK$17 to HK$7.6. The bank believes that e-cigarette products are expected to bring sales surprises, and that new hot tobacco (HNB) customers will also offset the impact of British and American tobacco inventory removal in the Japanese market, but the valuation fully reflects the medium- to long-term potential.