Smoore International Holdings Limited (6969.HK) stock analysis

In our weekly check, Smoore International Holdings Limited is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 10 pass, warnings: 7, red flags: 8.

About Smoore International Holdings Limited

Smoore International Holdings Limited is a Consumer Defensive company (Tobacco) based in China, listed on HKSE as 6969.HK.

What our checks show for 6969.HK

Red flags

• The net margin fell by 31 points over 5 years, to 7.5%: the company keeps less of each sale as profit.
• The gross margin fell by 19 points, to 34.6%: costs are rising faster than prices.
• Operating cash flow is only 0.46x net profit: part of the reported profit does not arrive as cash.
• Free cash flow is negative (-2.5% of revenue): the business spends more cash than it brings in.
• The dividend takes 870% of profit: little cushion if profit falls.
• The price swings a lot: 50.1% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 94% from a peak. Would you have held through that?
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Earnings per share fell 26% a year over the last 3 years.
• Net profit fell 24.9% a year over the last 3 years.
• The net margin is only 7.5%: little room if costs rise.
• The price is 37.7 times earnings (P/E): the market already pays for a lot of future growth.
• The stock is still below its previous peak.
• Beta 1.59: the stock usually moves more than the market, both up and down.
• Return on capital (ROCE) is only 5.5%.

Strengths

• Debt is low: 0.03x equity.
• Analysts expect earnings per share to grow about 33.9% a year over the next years.
• Analysts expect revenue to grow about 15.8% a year over the next years.
• Analysts expect the net margin to improve by 2 points from today's 7.5%.
• Actively traded: about 12.5 million shares a day.

Similar companies

IMB.L · MO · BTI · PM

Questions

What grade does Smoore International Holdings Limited (6969.HK) have?

In our weekly check, Smoore International Holdings Limited is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 10 pass, warnings: 7, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 6969.HK stock?

This week's biggest flags for Smoore International Holdings Limited: Margins falling, Gross margin falling, Profits not backed by cash. In total 15 of 25 checks show a warning or a red flag.

What does Smoore International Holdings Limited do?

Smoore International Holdings Limited is a Consumer Defensive company (Tobacco) based in China, listed on HKSE as 6969.HK.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

Open the full analysis