Smoore International Holdings Limited (6969) AI Stock Analysis

• Market Cap: HK$76.31B
• Dividend Yield: 2.03%
• Average Volume (3M): 18.00M
• Price to Earnings (P/E): 62.4
• Beta (1Y): 1.06
• Revenue Growth: 15.05%
• EPS Growth: -30.92%
• Country: HK
• Employees: 18,566
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Tobacco
• EPS (TTM): 0.09
• Shares Outstanding: 6,193,916,000
• 10 Day Avg. Volume: 22,205,835
• 30 Day Avg. Volume: 18,001,075
• PEG Ratio: -2.65
• Price to Book (P/B): 3.50
• Price to Sales (P/S): 6.50
• P/FCF Ratio: 106.91
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$20.00
• Price Target Upside: 31.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.55
• Revenue Forecast (FY): HK$108.60B

• Rating: 58 Neutral
• Price Target: HK$13.00 ▼(-14.59% Downside)

The overall stock score of 58 reflects the company's stable financial foundation with strong equity and low leverage. However, declining revenues and reduced profitability are significant concerns. The technical analysis indicates a bearish trend, and the high P/E ratio suggests the stock may be overvalued. These factors combined result in a moderate overall score.

Positive Factors

Strong Equity Position

A strong equity position with low leverage enhances financial stability, providing a solid foundation for future growth and resilience against market fluctuations.

Consistent Gross Profit Margins

High and stable gross profit margins indicate efficient cost management and pricing power, supporting long-term profitability and competitive advantage.

Cash Flow Positive

Being cash flow positive with a healthy free cash flow ratio ensures operational sustainability and the ability to invest in growth opportunities.

Negative Factors

Declining Revenue

Continuous revenue decline poses a risk to long-term growth and market position, necessitating strategic initiatives to reverse the trend.

Reduced Profitability

Decreasing profitability, as reflected in lower return on equity, may impact investor confidence and limit reinvestment capacity for future growth.

Operational Challenges

Operational challenges affecting cash flow could hinder the company's ability to fund new projects and maintain competitive positioning.

Smoore International Holdings Limited Business Overview & Revenue Model

Company Description

Smoore International Holdings Limited (6969) is a leading global provider of vaping technology and products, primarily focused on the design, research, and manufacturing of vaping devices and related components. The company operates in the vaping sector, catering to both the consumer and business-to-business markets. Its core products include advanced vaping devices, electronic cigarettes, and various accessories, which are designed to enhance user experience and satisfaction.

How the Company Makes Money

Smoore International generates revenue through the sales of its vaping devices and components to a diverse range of clients, including international brands and retailers in the vaping industry. The company primarily earns income from the production and distribution of its proprietary products, as well as from contract manufacturing services for other brands. Key revenue streams include direct sales to customers, business agreements with global partners, and the development of customized products tailored to specific market needs. Additionally, Smoore benefits from strategic partnerships with leading vaping brands, which expand its market reach and enhance its product offerings, contributing significantly to its financial performance.

Smoore International Holdings Limited Financial Statement Overview

Summary

Smoore International Holdings Limited demonstrates financial stability with strong equity and low leverage. However, declining revenues and reduced profitability over recent years are concerning. The company has a solid cash position but faces challenges in sustaining cash flow growth. Overall, while the financials indicate a stable foundation, strategic adjustments are necessary to enhance performance and growth prospects.

Income Statement

The company shows strong gross profit margins consistently above 35%. However, revenue growth has been erratic with a decline of 13.71% from 2021 to 2022, followed by a further decrease of 8.06% in the latest year. Net profit margin remains healthy at around 11% for the current period, though it has decreased compared to prior years. The company needs to address the continuous revenue decline to improve overall income statement performance.

Balance Sheet

Smoore International maintains a strong equity position with an equity ratio of about 79% as of the latest report. The debt-to-equity ratio is low at approximately 0.09, indicating financial stability and low leverage. Return on equity has decreased over the years, reflecting reduced profitability. Nonetheless, the company's balance sheet remains robust with ample liquidity, as evidenced by a significant cash reserve.

Cash Flow

Operating cash flow has seen fluctuations, but the company remains cash flow positive, with a free cash flow to net income ratio above 0.5 in the latest year. The significant decline in free cash flow compared to prior years highlights potential operational challenges. Cash flow management appears prudent, but improvements may be needed to sustain growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.77B	11.80B	11.17B	12.14B	13.76B	10.01B
Gross Profit	4.80B	4.41B	4.37B	5.26B	7.38B	5.30B
EBITDA	1.21B	1.07B	2.24B	2.58B	5.75B	4.11B
Net Income	1.11B	1.30B	1.65B	2.51B	5.29B	2.40B
Balance Sheet
Total Assets	27.33B	27.65B	25.51B	24.36B	22.87B	14.77B
Cash, Cash Equivalents and Short-Term Investments	10.60B	12.49B	16.17B	15.19B	14.66B	9.56B
Total Debt	925.79M	1.88B	776.39M	558.55M	757.58M	330.66M
Total Liabilities	4.89B	5.75B	4.10B	3.98B	3.62B	2.37B
Stockholders Equity	22.43B	21.90B	21.41B	20.38B	19.25B	12.40B
Cash Flow
Free Cash Flow	1.04B	717.57M	1.96B	-1.22B	1.61B	2.65B
Operating Cash Flow	1.96B	1.75B	3.19B	469.86M	3.59B	3.04B
Investing Cash Flow	-1.59B	-1.86B	-7.02B	-2.42B	-5.23B	-1.26B
Financing Cash Flow	-1.68B	-45.71M	-612.36M	276.19M	3.52B	7.06B

Smoore International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6969, the sentiment is Negative. The current price of 15.22 is above the 20-day moving average (MA) of 12.50, above the 50-day MA of 13.01, and below the 200-day MA of 16.19, indicating a bearish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 45.86 is Neutral, neither overbought nor oversold. The STOCH value of 68.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6969.

Smoore International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
6969	58 Neutral	HK$76.31B	62.44	5.06%	2.03%	15.05%	-30.92%
6055	58 Neutral	HK$24.07B	26.26	28.61%	1.44%	14.77%	16.77%

Smoore International Holdings Limited Corporate Events

Smoore International Releases Financial Update Amid EVE Energy’s Global Offering Plans

Smoore International Holdings Limited has announced a financial update based on its unaudited consolidated management accounts as of September 30, 2025. The update reveals the company’s current and non-current assets and liabilities, as well as its net assets and equity attributable to shareholders. This disclosure is part of a broader effort to provide consistent financial information to shareholders, particularly in light of EVE Energy Co., Limited’s application for a global offering on the Hong Kong Stock Exchange. The announcement emphasizes caution for investors, as the financial data has not been audited and may not fully reflect the company’s annual performance.

Smoore International Renews Procurement Agreement with EVE Energy

Smoore International Holdings Limited has announced the renewal of its Procurement Framework Agreement with EVE Energy, effective from January 1, 2026, to December 31, 2028. This agreement ensures the continued supply of battery products from EVE Energy to Smoore, with procurement prices determined by prevailing market conditions. The new annual caps for the agreement are set at RMB 580,000,000 for each year, reflecting anticipated changes in product orders and historical transaction amounts. This renewal is expected to support Smoore’s operations and strengthen its position in the evolving global atomization and vaping markets.

Smoore International Invests $80 Million in Morgan Stanley Notes

Smoore International Holdings Limited has announced the subscription of notes issued by Morgan Stanley Finance LLC, totaling US$80 million. This investment, funded by the company’s existing cash reserves and free cash flow, is considered a discloseable transaction under Hong Kong’s Listing Rules due to its size, requiring reporting and announcement but not shareholder approval.

Smoore International Grants Share Options to Employees

Smoore International Holdings Limited announced the grant of 1,180,000 share options to nine eligible employees under its Amended Share Option Scheme. The options, which have a 10-year validity and a vesting period from 2026 to 2029, are part of a performance-based incentive plan aimed at retaining talent and enhancing employee contributions to the company. This move is expected to strengthen Smoore’s position in the industry by aligning employee performance with company growth objectives.

Smoore International Grants 540,000 Shares Under Amended Award Scheme

Smoore International Holdings Limited has announced the grant of 540,000 awarded shares to 10 eligible employees as part of its Amended Share Award Scheme. This initiative, which includes a performance evaluation mechanism and a clawback provision, aims to incentivize employees based on their performance and tenure, potentially impacting the company’s operational efficiency and employee retention.

Smoore International Achieves Record Quarterly Revenue and Profit Growth

Smoore International Holdings Limited reported a record quarterly revenue of approximately RMB4,196.8 million for the period ending September 30, 2025, marking a significant year-on-year growth of 27.2% and a quarter-on-quarter growth of 27.5%. This growth was driven by increased shipments in the heat-not-burn and electronic vaping businesses, as well as expansion in the self-branded business. The company’s adjusted profit rose by 4.0% year-on-year, attributed to revenue and gross profit growth, along with efficient management of expenses. The announcement highlights Smoore’s strategic positioning in the global market, leveraging regulatory foresight and market insights to support compliant product launches, thereby enhancing its industry standing and stakeholder value.