Core view
Weekly review of the sector: the new tobacco sector fell 1.30% this week, outperforming the CSI 300 index and the CSI 500 index by 3.73 PCT and 2.84 PCT respectively. In terms of individual stocks, this week Zhuhai Rundu Pharmaceutical Co.Ltd(002923) , Eve Energy Co.Ltd(300014) , Apple Flavor & Fragrance Group Co.Ltd(603020) rose the most, rising 5.32%, 3.85% and 2.66% respectively Shandong Jincheng Pharmaceutical Group Co.Ltd(300233) , Huabao Flavours & Fragrances Co.Ltd(300741) , and fogcore technology fell by 7.03%, 5.97% and 5.61% respectively.
Zhou’s focus: Recently, the market research agency reportlinker released the global market report of e-cigarettes in 2022. The report points out that the global e-cigarette market is expected to grow from US $18.15 billion in 2021 to US $21.63 billion in 2022, with a growth rate of 19.2%. The main reason for the growth is that e-cigarette companies resume operations and adapt to the new normal, recover from the impact of covid-19, and take restrictive measures under the previous epidemic, including social distance, remote work and closing business activities, It has a certain impact on the operation of e-cigarette industry. It is estimated that the global e-cigarette market will reach US $38.53 billion by 2026, with a CAGR of 15.5%.
The second exposure draft of the national standard of electronic cigarette has entered the state of “being approved”. According to the information of the national standard information announcement service platform, the second exposure draft of the national standard of e-cigarette drafted by the state tobacco monopoly administration has entered the state of “being approved” after the review stage and will be released soon. According to the latest approval time and release time specified in the administrative measures for the preparation and revision of tobacco industry standards and the administrative measures for mandatory national standards, the policy is expected to be released no later than June 17.
Investment suggestion: China’s e-cigarette management measures, which will be officially implemented on May 1, encourage the export business development of e-cigarette manufacturing enterprises. In the future, enterprises with outstanding comprehensive advantages such as process technology, production scale and quality management are expected to fully benefit from the development of the global e-cigarette market. It is suggested to pay attention to the global atomization OEM leader smore International (6969. HK) with leading technical strength, and the Shenzhen Jinjia Group Co.Ltd(002191) ( Shenzhen Jinjia Group Co.Ltd(002191) . SZ) with the layout of the new tobacco whole industry chain and close cooperation with China tobacco.
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.
