Understanding the Market | E-cigarette concept stocks collectively rise as the trend of expansion in the U.S. compliant market continues, and the overall development trend of the HNB industry is relatively favorable

Electronic cigarette concept stocks collectively rose. As of the time of publication, SMOORE INTL rose 7.51% to HKD 16.9; HUABAO INTL rose 8.4% to HKD 2.58; CTIHK rose 2.97% to HKD 32.9. On the news front, it was reported that the U.S. Customs and Border Protection recently conducted large-scale inspections of electronic cigarette products at the Chicago port, intercepting a significant volume of goods. In addition, Japan Tobacco's first-quarter financial report showed that sales of new tobacco products increased by 19.0% year-on-year, with HNB product sales increasing by 27.7% year-on-year; Japan Tobacco announced that it will launch a new Ploom device and pods on May 27. Guojin Securities pointed out that the U.S. regulation of illegal vaping products has significantly tightened, and the trend of expanding the compliant market in the U.S. remains, emphasizing opportunities for compliant brand manufacturers and the growth of the industry chain; combined with the previous situation of Philip Morris in Q1, the overall development trend of the HNB industry remains favorable. In summary, SMOORE INTL currently has a cost-effective layout, the inflection point of the vaping business has begun to emerge, and the growth potential of the HNB business, relying on deep cooperation with British American Tobacco, is promising. It continues to be a key recommendation