On Friday local time, the US Food and Drug Administration (FDA) approved the first batch of menthol-flavored electronic cigarettes, allowing them to be sold in the United States. This is also the first time the agency has approved flavored electronic cigarettes other than tobacco.
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.
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:
$SMOORE INTL (06969.HK)$The company's layout of atomization medical/beauty/HNB and other businesses is expected to gradually enter the volume expansion stage, providing new performance increments. In 2023, the company's R&D investment was about 1.48 billion yuan, an increase of 8.1% year-on-year, mainly invested in medical atomization products, heated non-burning products, and disposable electronic atomization products. In terms of medical atomization products, the company continues to promote the development and production of drug-device combination products for asthma and chronic obstructive pulmonary disease. For atomized beauty products, in March 2024, the company launched its first technology skincare brand MOYAL Lan Zhi, and the misty essence instrument products went on sale, marking the first application of the company's core TPS transdermal technology in the C-end beauty field. As for disposable electronic atomization products, the upgraded ceramic atomization heating body technology platform FEELM Max, high-explosive ceramic series technology platform, automatic oil-filling and charging series high-end products COSS, etc., launched by the company, have received market praise.
$CTIHK (06055.HK)$Ctihk is the exclusive operating entity designated by the China National Tobacco Corporation to develop international business expansion platform and related trade business. Its "exclusive status" is relatively rare, and it may continue to benefit from CNTC's overseas expansion and equity merger and acquisition matters in the future. Since 2018, the company has successively carried out new tobacco export business, Brazil operating business and expanded cigarette export business beyond the exclusive operating area of the company. In April 2024, it started long-term strategic cooperation with Sichuan Tobacco to jointly promote the domestic "Great Wall" cigars in overseas markets, and its profitability is expected to continue to increase. The company regards new tobacco products as its core strategic focus and will continue to invest resources to expand the market.
$CHINA BOTON (03318.HK)$At present, the company has obtained eight tobacco monopoly production enterprise licenses for electronic cigarette oil, producing electronic cigarettes for its own brand (including OEM production for customers) and holding electronic cigarette brands, forming a complete industrial chain layout; combined with its own competitive advantages, it is expected to make great progress in the direction of tobacco oil and brand overseas operations; it will enter the international market through self-owned brand and electronic cigarette products customized for customers.
$HUABAO INTL (00336.HK)$The company's related products in the new tobacco sector mainly include heated non-burning tobacco (HNB) tobacco slices and low-temperature fragrances.
Editor/ping