Changes in Hong Kong stocks | Huabao International (00336) rose more than 12% in the afternoon. Further development of the domestic HNB regulatory framework is expected to benefit the tobacco flavor business

The Zhitong Finance App learned that Huabao International (00336) rose more than 12% in the afternoon. As of press release, it rose 12.16% to HK$3.46, with a turnover of HK$54.884,800.

According to the news, at the end of July, the State Tobacco Monopoly Administration officially released a draft for comments on the mandatory national standard for “heated cigarettes”. The standard is to be implemented six months after the official release. Societe Generale Securities pointed out that for the first time, the opinion paper clarified the specific requirements for cigarettes, smoking utensils, and aerosols, and the domestic HNB regulatory framework was further developed. Domestic HNB will continue to be developed around the tobacco system and tobacco material supply chain, which is beneficial to suppliers with China Tobacco customer resources, full range of product capabilities, and first-mover verification advantages.

Northeast Securities pointed out that demand growth in the domestic cigarette market is under great pressure, so HNB liberalization has become a necessary option to save the domestic tobacco market. The national standard for heated cigarettes was publicly solicited for comments, marking that China's HNB industry has moved from a “period of policy ambiguity” to a “period of clarification of rules.” The development of HNB and oral tobacco has brought new demand for flavors, which is beneficial to the development of the company's tobacco essence business.