Current location:Home Page > News Center>Emerging industries in the tobacco industry

Emerging industries in the tobacco industry
Event: On the evening of November 26, in order to strengthen the supervision of new tobacco products such as e-cigarettes, the State Council decided to add Article 65 to the "Implementation Regulations of the Tobacco Monopoly Law of the People's Republic of China": e-cigarettes and other new types of tobacco are implemented with reference to the relevant provisions of this regulation on cigarettes.
      Industry policy is gradually becoming clearer, preferable to industry leaders
      The inclusion of new tobacco products, such as e-cigarettes, in the management of the monopoly law is a formal amendment to the "3.22 consultation draft".
      The formal amendment and implementation of the "3.22 consultation draft". In addition, on 11.12, a meeting was held on the national standard for electronic cigarettes to solicit opinions, with the participation of atomised brand companies (such as Mist Core Technology and Platinum) and low-temperature herbal companies, which discussed the definition of electronic cigarettes, additives and nicotine content. On behalf of the domestic atomised e-cigarette specific management methods and national standards are being accelerated, the subsequent industry chain links or reference to the traditional cigarette license management, to enhance the industry access threshold, favoring formalized management, product quality compliance of leading enterprises.
      Clarify the regulatory body, and expect to follow up on the regulatory rules for e-cigarettes and tax management in accordance with the law for tobacco products
      We believe that the amendment will first clarify the regulatory body of atomized e-cigarettes, with Cigarette as the regulator, and strengthen industry supervision is the main purpose. As new tobacco products such as atomized e-cigarettes are homogeneous with traditional cigarettes in terms of core ingredients, product functions and consumption patterns, we believe that the taxation system for new tobacco products such as atomized e-cigarettes will be gradually implemented in the later stages of the study, which will be similar to that of traditional cigarettes in China and make a positive contribution to the national revenue. Subsequent or specific regulatory direction and rules for the implementation of additional instructions.
      The global trend of new tobacco has arrived! It is expected that Cigarette China's subsequent supporting new tobacco policies will be introduced to accelerate the promotion of Cigarette China's HNB products to market
      According to the performance of overseas tobacco giants' new tobacco business in recent years, we can already see that new tobacco has become an important transformation and layout direction for major companies. As China is a major tobacco country, we believe that with the regulation of atomized e-cigarettes, China's HNB products are also expected to be launched gradually to continue to meet consumers' demand for harm reduction, enhance consumer experience and the structure of cigarettes.
      In summary, we believe that the regulatory introduction of a clear regulatory body and direction of the atomized e-cigarette, the subsequent need to wait for specific rules to land, regulatory landing will effectively push up the industry threshold, concentration, the industry upstream and downstream leading enterprises.
      Investment recommendations.
      HNB industry chain: key recommendations - Huabao International / shares (domestic tobacco flavoring leader, the only private license for new flakes), Jinjia shares (domestic tobacco label leader, and the only strategic cooperation with Yunnan Cigarette private enterprises); recommended to focus on: Jiyou shares, Shun Hao shares, Dongfeng shares [covered by Tianfeng light industry team], China Tobacco Hong Kong, China Bolton.
      Fogging industry chain: key recommendation-Small International (global leading fogging equipment manufacturer), followed by fog core technology (domestic fogging brand leader), AISD (domestic fogging channel leader)
      Risk tips: new tobacco policy change risk, sales / business development is not as expected, the risk of increased market competition
Source: Sina Finance
Disclaimer:This article was written by the author of the information column or online reprinted in, the views are the author's own and do not represent the position of If there are any infringements or other problems, please contact us to report them.
This web site reproduced and indicated from other sources of works, the purpose is to pass on more information, does not mean that the network agrees with its views or to confirm the authenticity of its content, does not bear the direct responsibility for such works of infringement and joint and several liability. When other media, websites or individuals reproduce from this website, they must retain the source of the work indicated on this website and bear their own legal responsibility for copyright and other issues.
If the content of the work, copyright and other issues are involved, please contact us within one week from the date of publication of the work, otherwise it will be considered as a waiver of the relevant rights.