The Zhitong Finance App learned,$Huabao International (00336.HK) $Early trading rose nearly 20%. As of press release, it rose 14.54% to HK$5.75, with a turnover of HK$43,043 million.

Huabao International announced that it expects profit of about 407 million yuan before tax for the five months ending May 31, 2022, down about 27% from the same period last year. The company explained that mainly due to the impact of the epidemic and the international situation during the period, market demand declined and raw material costs rose. Coupled with changes in the group's product structure, the Group's comprehensive gross margin declined.

Dongwu Securities believes that the policy encourages the industry to engage in transparent market-based and fair competition. The National Tobacco Monopoly Administration emphasizes that e-cigarette inspection and testing agencies that undertake relevant tasks should have no relevant interests, such as e-cigarette manufacturers, and that carrying out strictly regulated testing activities will push the e-cigarette industry to further marketize and standardize competition. The short-term market size may be disrupted by policy implementation, but the medium- to long-term penetration rate is expected to continue to increase.