Attention this week: the economic Tobacco Institute (Policy Research Office) of the state tobacco monopoly administration released the world tobacco development report 2021 to update the development progress of various tobacco products; JTI released the quarterly report of 2022q1: in 2022q1, the company achieved a revenue of 581.5 billion yen (about US $4.469 billion), a year-on-year increase of 6.2%, and a net profit of 124.1 billion yen (about US $954 million), a year-on-year increase of 9.1%.
The report of “rapid expansion of cigarette market in foreign countries, stable development of electronic cigarette market in 2021” was released!
In terms of e-cigarettes, in 2021, except for Chinese Mainland, the sales of e-cigarettes in the world reached US $21.3 billion, a year-on-year increase of 12.1%. Among them, the sales of closed e-cigarettes were US $13.52 billion, a year-on-year increase of 13.9%, the sales of open e-cigarettes were US $7.78 billion, a year-on-year increase of 9.1%, and the sales of liquid smoke used to fill open e-cigarettes were US $5.56 billion, a year-on-year increase of 10%. In terms of market, the sales volume of e-cigarettes in the US market was US $10.31 billion, with a year-on-year increase of 9.9%. Closed e-cigarettes are the main type, while open e-cigarettes continue to shrink in the US market, accounting for less than 3%; The UK e-cigarette market performed steadily, with sales of US $3.45 billion in 2021, a year-on-year increase of 16.9%, 67% from open e-cigarettes, and the sales and proportion of closed e-cigarettes also increased.
In terms of heating non combustion products, except for Chinese Mainland, the sales of heating non combustion products in the world in 2021 was US $26.41 billion, a year-on-year increase of 27.1%, including 25.7 million sets of heating non combustion smoking sets, a sales volume of US $1.78 billion, and 2.294 million boxes of heating non combustion cigarettes, a sales volume of US $24.63 billion. In terms of market, the sales of heating non combustion products in Japan in 2021 was US $10.31 billion, a year-on-year increase of 7.4%, accounting for 39%, and that in Europe was US $12.48 billion, a year-on-year increase of 45.9%, accounting for 47.3%.
2. 22q1 Japan’s market scale of harm reduction products accounts for about 33.4% of the total amount of the tobacco industry
22q1 Japan tobacco harm reduction products achieved a total revenue of 19.1 billion yen (about 147 million US dollars), a year-on-year increase of 2.4%; The sales volume of heating non combustion smoke bombs was 2 billion, with a year-on-year increase of 16%, mainly due to the continuous increase of ploomx’s market share in Japan. Specifically, in the Japanese market, the total sales volume of 22q1 company in the Japanese market decreased by 9.2%, of which the sales volume of the company’s traditional cigarettes decreased by 12.1%, mainly due to the contraction of the total volume of the Japanese cigarette industry by about 8.5%; In terms of harm reduction products, the sales volume of harm reduction products of 22q1 company increased by 33% year-on-year, and the market share of harm reduction products in Japan increased by 2.2pct to 12%, of which ploomx market share increased by 3.7pct to 7.2%, and the market scale of harm reduction products in Japan accounted for about 33.4% of the total amount of tobacco industry. We believe that the company focuses on the layout of harm reduction products, ploomx will be launched all over the world, and the sales volume of its heating non combustion equipment is expected to continue to grow. As the manufacturer of electronic atomization components of the company’s heating non combustion products, smore international is expected to continue to benefit from its technical advantages.
Recommendation: international leader in atomization industry chain (1); Suggestion: fog core technology. 2) Tobacco supply chain: it is suggested to pay attention to: China Tobacco Hong Kong, Shenzhen Jinjia Group Co.Ltd(002191) , Huabao international, Anhui Genuine New Materials Co.Ltd(603429) , Shanghai Shunho New Materials Technology Co.Ltd(002565) , Shantou Dongfeng Printing Co.Ltd(601515) , China Bolton.
Risk tip: the risk of new tobacco policy changes, the risk of sales / enterprise development falling short of expectations and intensified market competition.
