E-cigarette concept stocks rose in early trading$Smoore International Holdings Limited (06969.HK)$Leading the rising plate, as of press time, Smoore International Holdings Limited rose 16.08% to HK $9.17, with a turnover of HK $173 million.

On the news side, on October 25, the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation issued a notice on levying consumption tax on e-cigarettes, bringing e-cigarettes into the scope of consumption tax and adding e-cigarettes under the category of tobacco tax. The announcement shows that e-cigarettes are taxed on an ad valorem basis, with a tax rate of 36% for production (import) and 11% for wholesale.

It is reported that e-cigarette enterprises were only taxed according to 13% VAT before, and the consumption tax levied on e-cigarettes according to the new policy may directly lead to a significant increase in the price of terminal e-cigarette products. In particular, this policy points out that the export of e-cigarettes is still subject to the export tax rebate (exemption) policy, which means that the strategy of domestic e-cigarette enterprises in overseas markets can continue.

According to the Securities Times, with regard to the introduction of the e-cigarette tax, senior domestic tobacco research experts said that it is in line with expectations, it is of great benefit to the industry, the tax level is acceptable, and the key is that overseas exports continue to enjoy the tax rebate policy. and overseas exports are the focus of the domestic e-cigarette industry. Li Youqiang, a senior domestic tobacco research expert, said that e-cigarette enterprises will survive the fittest. 70% of the domestic e-cigarette brand production capacity is concentrated in Simal, and the future production capacity will be concentrated to the leading enterprises.

Huachuang Securities commented that the industry adjustment performance is under temporary pressure, overseas markets are growing steadily, disposable products are growing vigorously, and the "strong push" rating is maintained. Anxin International said it must be recognized that there is still a lot of room for development in the e-cigarette industry and that the company has a leading edge in the industry. Maintain a "buy" rating. Guojin Securities said that the cooperation between Smoore International Holdings Limited and British American Tobacco PLC is stable. At present, the quantity of disposable tobacco products starts rapidly, and this product continues the high growth period. Maintain the "push" rating.