Tobacco Stocks Surge in Early Morning Trading as Huabao International Gains Over 7% and Smoore International Rises Over 4%

Deep News07-30

Tobacco-related stocks experienced a broad rally in early morning trading, with several key players recording significant gains. Huabao International (00336) surged 7.12% to HK$3.31, while Smoore International (06969) advanced 4.29% to HK$9.24. China Tobacco Hong Kong (06055) also saw a notable increase of 2.87% to HK$24.38.

According to industry analysis, the development of national standards provides a technical framework for regulation, which could signal further progress in the opening of the domestic HNB (Heat-Not-Burn) product market. As the relaxation for HNB products in China continues to advance, multiple tobacco supply chain companies have already taken the lead in positioning themselves within relevant segments of the industry chain. These firms are poised to benefit from the market opportunities presented by the HNB expansion.

Key beneficiaries to watch include: Smoore International (06969), which offers comprehensive HNB pod and device solutions; China Tobacco Hong Kong (06055), responsible for exporting HNB products under the CNTC brand; and Huabao International (00336), which specializes in tobacco sheets and new materials for tobacco use.

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