HTSC's research report pointed out that SMORE (06969.HK) has recently been catalyzed by the overseas interest rate cut, boosting Hong Kong stock sentiment again, driving its stock price up. The firm believes that the company's traditional aerosol e-cigarette sector is steadily recovering, expecting a turning point in operation in the second half of the year, while also advancing non-combustion heating, medical aerosol, and other businesses as part of its medium to long-term strategy, ensuring long-term smooth growth.

HTSC maintains SMORE's profit forecast, expecting the company's net profit for 2024 to 2026 to be 1.698 billion, 2.01 billion, and 2.393 billion RMB respectively, with corresponding earnings per share estimates of 0.28, 0.33, and 0.39 RMB. Taking into account the company's continuous strengthening in product innovation and category expansion, superior research and development and management, outstanding compliance market value after the implementation of regulatory policies in various countries, highlighted long-term value attributes, smooth progress in new businesses, expected to open up a new growth curve, the firm has raised the group's target price from 11.31 RMB to 12.37 RMB, maintaining a 'buy' rating.