CITIC research newspaper pointed out that the "legislative amendments" entrust China Tobacco with regulatory responsibilities, and the e-cigarette industry has entered an era of legal supervision that "there is a law to follow." After the revision of the regulations, the risk of "complete prohibition" of atomized products is lifted, but the risk of "monopoly" remains. We judge that the neutral situation of China Tobacco monopoly in wholesale operation and the optimistic situation that China Tobacco only dominates supervision-taxation and private enterprises' participation in all aspects of operation is the direction of high probability supervision, and the follow-up supervision details are expected to be published one after another under the guidance of China Tobacco. The market of 21Q3 atomized tobacco has hit bottom both at home and abroad, and the margin is good in 2022. The domestic market of HNB is waiting to bloom, and the potential supporting space is huge. Atomization and HNB technology leaders hope to further widen the gap with their competitors by virtue of technical iterations. Maintain the "better than the market" rating of the new tobacco industry.