E-cigarette supervision is optimistic about the standardized development of industrial chain with reference to cigarette and cigarette institutions
[Securities Times] the State Council decided to amend the regulations for the implementation of the tobacco monopoly law and add one article as Article 65: “new tobacco products such as electronic cigarettes shall be implemented with reference to the relevant provisions of these regulations.”
Comments: insiders said that considering that this is “reference” rather than “according to” the relevant provisions of cigarettes, it may mean that e-cigarettes will usher in a more flexible management space. China’s new tobacco related standards and policies continue to be formulated, the industry is expected to be gradually standardized, and the industrial chain suppliers cooperating closely with China tobacco are expected to obtain the first mover advantage.
Huabao Flavours & Fragrances Co.Ltd(300741) (300741): the company is an electronic cigarette flavor manufacturer, benefiting from the development of the heated non burning electronic cigarette industry.
Shenzhen Jinjia Group Co.Ltd(002191) (002191): the company plans to acquire 40% equity of Hengtian commerce, which provides overseas marketing and channel expansion services for heating non combustion products to some China tobacco companies.
