On June 6th, the US Food and Drug Administration (FDA) revoked its marketing refusal order for Juul for June 2022 and re-included the company's application in the scientific review process.
On June 6th, the US Food and Drug Administration (FDA) revoked the marketing refusal order for Juul in June 2022 and re-entered the company's application into the scientific review process.
After determining that certain scientific issues required further review, the FDA administratively suspended the decision in July 2022. Since then, the FDA stated that it had conducted additional reviews on applications from multiple disciplines, such as toxicology, engineering, social sciences, and clinical pharmacology.
The FDA stated that the decision to revoke the order against Juul Labs was partly due to new precedent law and a review of the information provided by the applicant. However, the revocation of the marketing refusal order does not indicate whether the application may be approved or denied.
The FDA also indicated that the new lawsuit results in other electronic cigarette product marketing refusal cases provided information for its product review method.
Juul Labs welcomed this decision and expressed its expectation to collaborate with the FDA again on a process based on science and evidence to obtain marketing authorization for Juul products in the US.
Since the launch of Elfar's disposable e-cigarettes with oil-electric screens, many brands have followed suit. E-cigarette brands that have launched large-screen products include RabBeats, HQD, FRESOR, SMOK, IJOY, FiBiE, and ABUFUN. As the product iterates, the screen size and technical solutions are constantly upgrading, and the screen-to-cigarette ratio is constantly increasing. At the same time, the display scheme is gradually transitioning from three-color LED to full-color LCD.
As the price continues to decrease, the penetration rate of e-cigarettes with screens is expected to further increase. With the screen becoming a new trend in the e-cigarette industry, many upstream electronic component manufacturers in China have expressed in communication that the demand is showing a rapid growth trend, including but not limited to JunCheng Technology, Purcotton, Newcomm, and HuiCheng Holdings.
GTJA Securities recommends paying attention to the relevant links in the e-cigarette industry chain with screens, such as MCU, display, Nor Flash, DDIC, and so on.
Electronic cigarette-related industry chain companies:
Smoore International (06969): The company's layout of spray medical/beauty/HNB and other businesses is expected to gradually enter the volume phase, providing new performance increments. In 2023, the company's R&D investment was approximately RMB 1.48 billion, a year-on-year increase of 8.1%, mainly invested in medical atomization products, heated non-combustion products, disposable electronic atomization products, etc. In terms of medical atomization products, the company continues to promote the development and production layout of drugs and devices for asthma and chronic obstructive pulmonary disease. Regarding spray beauty products, in March 2024, the company launched its first technology skin care brand MOYAL RANZHI, selling fog light essence device products. It is the first application of the company's core TPS transdermal technology in the C-end beauty field. In terms of disposable electronic atomization products, the company's upgraded ceramic atomization heating body technology platform FEELM Max, high-burst ceramic series technology platform, automatic oil injection and charging series of high-end products COSS have received market acclaim.
China Tobacco Hong Kong (06055): China Tobacco Hong Kong Co., Ltd. is the exclusive operating entity designated by China National Tobacco Corporation to engage in international business development platforms and related trading businesses. Its "exclusive status" is rare, and it may continue to benefit from the overseas expansion and equity mergers and acquisitions of China Tobacco in the future. The company has successively launched new tobacco export business and Brazil business since 2018, and expanded cigarette export business beyond the company's exclusive operating area. From April 2024 onwards, it will cooperate with Sichuan National Tobacco to jointly promote domestically produced "Great Wall" cigars in overseas markets, and its profitability is expected to continue to grow. The company regards new tobacco products as the focus of its core strategy and will continue to invest resources to expand the market.
China Boton (03318): At present, the company has obtained eight tobacco monopoly production enterprise licenses for producing electronic cigarette oil for its own brand, producing electronic cigarettes (including OEM production of electronic cigarettes), and holding electronic cigarette brands, forming a complete industrial chain layout; combined with its own competitive advantages, it is expected to make significant progress in the direction of tobacco oil and brand overseas operation; will enter the international market through electronic cigarette products of its own brand and those customized for customers.
Huabao International (00336): The company's related products in the new tobacco sector are mainly heated non-combustion tobacco (HNB) tobacco slices and low-temperature fragrances.