Huatai Securities: Q3 Brings New HNB Partnership and US Flavored Vape Launch
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Smoore International (6969 HK) recorded Q3 2026 revenue of RMB3.946 billion, down 6.0% year on year, while adjusted net profit edged up 1.8% to RMB452 million. The vaping business stayed resilient: business-to-business revenue rose 2.5% on US market momentum, and the company began delivering flavored products to its core US client during the quarter, with launches now on retail shelves. Europe's disposable e-cigarette ban, now in force, should improve industry structure.
HNB revenue fell 47.8% year on year against a high base but rebounded 33.2% quarter on quarter, and Smoore added a new tobacco client for its integrated HNB solutions. The vaporized medical unit's losses remain contained—RMB175 million cumulative for the first three quarters—as it pursues external financing. Huatai Securities expects adjusted net profit of RMB1.619 billion, RMB2.189 billion and RMB2.758 billion for 2026-2028, and maintains a Buy rating with the target price lowered to HK$14.88, viewing improved product mix, cost discipline and regulatory tailwinds as supportive of longer-term growth.
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