Policy Support for E-Cigarette Exports Lifts Related Stocks

On July 20, the State Tobacco Monopoly Administration issued the Guidelines on Promoting the Development of Quality Assurance Systems for Export E-Cigarette Products. Kaiyuan Securities said that the implementation of these guidelines means compliance supervision over e-cigarette exports will be further improved. Outer box and carton packaging for exported e-cigarette products will be required to display information such as the tobacco monopoly production enterprise license number and production batch number. Non-compliant companies are expected to be further cleared out, accelerating the industry’s concentration toward leading players and benefiting the industry’s long-term stable and healthy development.

Cinda Securities said that as the impact on domestic sales is gradually absorbed, overseas disposable and special-purpose vaping products will continue to drive growth. With a focus on long-term development, the company’s R&D investment is expected to be gradually reflected in results, and its medium- to long-term share of the global vaping device industry is expected to continue increasing.

At the same time, the e-cigarette sector strengthened in early trading, with Shunhao Shares and Gongda Electroacoustic hitting the daily limit, Jinlong Electromechanical surging more than 15%, and Yidong Electronic, Shaanxi Jinye, and Jinjia Shares rising quickly in tandem.