Review of weekly performance of the sector: the new tobacco sector fell – 0.65% this week, outperforming the CSI 300 index by 1.02pct and losing the CSI 500 index by 0.42pct. In terms of individual stocks, SIMORE international and fogcore technology retreated significantly this week, falling 18.45% and 13.51% respectively Shandong Jincheng Pharmaceutical Group Co.Ltd(300233) rose by 10.59%, leading the increase, Eve Energy Co.Ltd(300014) , Shenzhen Jinjia Group Co.Ltd(002191) recorded an increase of 4.78% and 3.67% respectively.
Zhou’s focus: on February 22, in order to clean up and rectify the activities of selling e-cigarettes to minors according to law, severely crack down on crimes involving e-cigarettes, and effectively protect the physical and mental health of minors, the Ministry of public security, the state tobacco monopoly administration, the State Administration of market supervision The four departments of the Bureau of Education jointly issued the special work plan for cleaning up and rectifying the sale of e-cigarettes to minors and severely cracking down on crimes related to e-cigarettes, which was deployed to carry out special rectification from the 22nd to the end of April.
E-cigarette regulation for minors is the focus of industry norms. Since 2018, the contents involving minors in China’s e-cigarette regulatory policies have become the focus, and a large number of official documents have been issued to regulate the order of the e-cigarette industry. In August 2018, the State Administration of market supervision and administration stipulated that electronic cigarettes should not be sold to minors and electronic cigarette products should not be displayed to minors; In November 2019, the two departments issued the notice on further protecting minors from e-cigarettes; In October 2020, the law on the protection of minors clearly stipulates that the sale of electronic cigarettes to minors is prohibited; In June 2021, the two departments interviewed e-cigarette enterprises and Internet enterprises to prevent the infringement of e-cigarettes on minors in the Internet field. The clean-up and rectification action jointly carried out by the four departments is not only the continuation of the previous e-cigarette regulatory policies for minors, but also the establishment and improvement of a long-term regulatory mechanism in the e-cigarette industry and the continuous standardization of the industry.
Investment suggestion: the short-term market is affected by sentiment, and there is a correction in the sector. We believe that actions will release positive signals for policy promotion and lay a foundation for the introduction and implementation of follow-up official documents. At the same time, strengthen supervision, promote the healthy and orderly development of the industry, improve market concentration, and benefit the development of leading enterprises. With the rapid development of the global standard tobacco industry (including the continuous development of the global standard tobacco industry), we believe that we will gradually pay close attention to the development trend of the global standard tobacco industry, including the continuous development of the global standard tobacco industry.
Risk warning: industry regulatory policies exceed expectations; The market demand is less than expected; Intensified market competition; Technical iteration and update; Price fluctuation of raw materials; Repeated outbreaks outside China have impacted channel sales; Macroeconomic pressure.
