"Hammer and finish"! E-cigarette legal supervision landed Industry leader Yueke is welcoming good

Financial circles on November 29 news, on the evening of November 26, in order to strengthen the supervision of new tobacco products such as electronic cigarettes, the State Council decided to add Article 65 to the "Regulations for the Implementation of the Tobacco Monopoly Law", "electronic cigarettes and other new tobacco are implemented with reference to the relevant provisions of cigarettes in these Regulations", and the supervision policy of electronic cigarettes is further clarified.

1. E-cigarette milestone: supervision "hammer and nail"

In fact, as early as November 12, there were many media reports that Shenzhen held a consultation meeting on national standards for electronic cigarettes.

At that time, the news said that more than a dozen enterprises in the industrial chain attended the meeting, and made preliminary discussions on the definition of electronic cigarettes, additives, nicotine content and other issues, and the industry expected the clarity of regulatory policies. Reflected in the capital market, a variety of good news fermentation, e-cigarette concept stocks generally rose, the market's "real money and silver" for e-cigarette supervision expectations and positive expectations are self-evident.

Nowadays, the news has landed, and China has also referred to international practices to incorporate e-cigarettes into the rule of law supervision, rather than "banning them".

According to the analysis, the inclusion of new tobacco products such as e-cigarettes in the management of the Monopoly Law officially confirms the status of new tobacco such as e-cigarettes in China that can be legally and compliantly produced and sold, and officially clarifies the identity of e-cigarettes at the national legal level, which is a very important milestone for the e-cigarette industry. At the same time, this also means that the follow-up supporting policies will follow up, the industry threshold is expected to gradually increase, and the trend of leading enterprises to meet the good is very clear.

From a higher dimensional point of view, China's e-cigarette regulatory policies today are also based on the comprehensive global market pattern, development prospects and other considerations and game landing. According to the industry survey data of Ai Media Consulting, the current global e-cigarette industry has formed an industrial pattern of "Made in China, World Consumption", more than 90% of the world's e-cigarettes are manufactured in Shenzhen, China is in a leading position in the global competition, has become the world's largest e-cigarette producer, exporter, and master the core technology in the e-cigarette industry chain, China obviously can not easily give up the hard-won leading edge and is expected to continue to achieve results in foreign trade, foreign exchange and other benefits.

2. Regulatory reservation space, the industry shows "resilience"

Compared with the international perspective, in fact, the regulatory policy is becoming increasingly clear. The US FDA has successively recognized the harm reduction of HNB and atomized products, and seems to be intending to reserve development space for the development of the e-cigarette industry. Based on the current situation in China, although the "Decision" has been issued, the document requirements are "with reference" to the relevant provisions of cigarettes, and "reference" is not "in accordance with", which is the innovative space reserved by domestic regulatory agencies for the development of e-cigarettes.

Judging from the development of China's e-cigarette industry in recent years, it has grown under the fierce competition of fully participating in the domestic and international markets, and the power of innovation and upgrading has also been fully stimulated, and the leading edge is obvious. First, in the current 28642 e-cigarette patents in the world, 87.3% of the patents are in the hands of Chinese enterprises, most of which are private enterprises; second, developed countries such as the United Kingdom and the United States have accepted the transformation to new tobacco such as e-cigarettes is a common trend in the global tobacco industry, so grasping the core competitiveness such as research and development from the upstream can better occupy a core position in this industrial chain, and it is not difficult to understand that it is intended to catch up with China; third, it is not difficult to understand that e-cigarettes are allowed to develop. And in the future, the high proportion of tobacco taxes levied on atomized e-cigarettes with reference to domestic traditional cigarettes will effectively supplement and increase The existing tax base in China will be effectively supplemented and increased, so it is not difficult for regulators to reserve development space under multiple games.

It is foreseeable that the landing of supervision will be of great benefit to the industry in standardizing development channels. With the support of strong supervision, many aspects such as the protection of minors, product quality and safety, and consumer protection will be valued, and the industry's innovation potential will be stimulated more on the compliance track, so it will be beneficial to the industry in the long run.

In addition, combined with the landing of the "Decision", it can be predicted that the relevant management rules of follow-up supporting measures such as e-cigarettes will also be combined with reality and flexible introduction. CITIC Securities predicts that the risk of "complete prohibition" of the atomized category after the "amendment" is lifted, but the risk of "monopoly franchise" still exists, and the neutral situation of the wholesale link of China Tobacco's monopoly operation and the optimistic situation that China Tobacco only dominates supervision & taxation and private enterprises participating in various links of operation are the direction of high-probability supervision, and the follow-up regulatory details under the leadership of China Tobacco are expected to be introduced one after another.

However, whether it is bearish or good, even if there is a certain possibility of bearishness in regulatory policies, it is not enough for the e-cigarette industry to be afraid, which is a moment to show the "anti-fragility" of the industry. Taking the e-cigarette leader Yueke as an example, before the introduction of the online ban on sales, Yueke actively responded to the regulatory call, vigorously laid out offline, and responded to policy impacts, but it made it quickly find new growth space in the offline market, and re-realized the revenue rebound in just three quarters, reflecting the resilience of the e-cigarette industry and the adaptability in responding to regulatory requirements to the market.

So back this time, we should also have hope for the industry. After all, from the perspective of the overall process, the direction of China's supervision of e-cigarettes according to law is not only in line with the global trend, but also directly opens the door for e-cigarettes to avoid negative effects and exert positive value to the greatest extent, and at the same time gives formal leading enterprises a more directional development path.

3, only the threshold is raised to benefit the industry

From the perspective of different industries, only by giving the correct and standardized development standards from the perspective of supervision can it be more conducive to the development of the industry and the birth of leading enterprises.

The secondary market often chooses to "vote with its feet" because of the introduction of short-term regulatory policies, but it is necessary to realize that supervision and the development of the industry have never been antagonistic, and under the market law of bad currency expelling good money, only enterprises that abide by the rules and have strong technical accumulation in the industry can endure in the wave of market clearance.

Taking the e-cigarette market as an example, due to the national standards for e-cigarettes have not yet been introduced, e-cigarette brands are "mixed", e-cigarette manufacturers are as high as 46,000, and among the various products sold, in the nicotine content, nicotine labeling, raw material selection, additive use, atomization rod process and other aspects of the arbitrariness, the quality is uneven, some manufacturers even deliberately produce open oil-fillable empty smoke bombs, becoming some contraband smoking tools, causing social concerns.

However, with the landing of supervision and the introduction of the national standard of e-cigarettes, the industry threshold has been pushed up, and the market is expected to accelerate the clearance, truly retaining those leading enterprises that can have a positive role in promoting the industry.

Taking Yueke as an example, first, the company pays attention to technological innovation, improves quality by formulating enterprise standards and promoting key links of the whole industry chain, and strives to provide consumers with quality and safe products; second, Yueke stores across the country have installed the "Sunflower System" to achieve 100% coverage of the intelligent protection system for minors, effectively prevent minors from purchasing electronic cigarettes, and comply with the law; third, respond to industry policies for the first time and give play to the responsibilities of leading enterprises. Taking this as an example, Yueke expressed its firm support for the revision of the regulations in a timely manner, earnestly fulfilled its social responsibilities, and actively implemented regulatory requirements. After the introduction of the "Decision", although the market panicked for a short time, the stock price of Yueke US stocks was once lower, but after a multi-party game, the closing price still rose by 2%, showing that the market was optimistic about it.

Pressure, regulation and response mean that the industry is moving in an orderly and sustainable direction. Shoddy manufacturing can not win the market, only enterprises that truly practice standards and continue to respond to regulatory calls can follow the trend, continue to innovate, and develop more firmly and unhurriedly under the regulatory tokens. Nowadays, the e-cigarette market has "hammered out", and the spring of the dragon head has once again been firmed.

Many sellers believe that e-cigarettes are expected to "bottom out"

CITIC Securities said that the 21Q3 atomized smoke market at home and abroad has doubled to the bottom, and the margin will be good in 2022. The domestic market of HNB is waiting to bloom, the potential supporting space is huge, maintaining the "stronger than the big market" rating of the new tobacco industry, and the judgment that atomization and HNB technology leaders hope to further open up the gap with competitors by relying on technology iteration. Zheshang Securities stressed that the decision to introduce dispel the concerns about the "one-size-fits-all" atomization. After the implementation of the national standard, the negative public opinion of various types of electronic cigarettes is expected to end, the domestic electronic cigarette market is expected to usher in the healthy development under the supervision of standardization, and the global trend is determined, and the focus should be on the high-quality leader of the domestic industrial chain.

This article originated from the financial world