Briefly talk about electronic cigarette

With the implementation of policies related to electronic cigarettes last week, the regulatory direction of new types of tobacco, such as electronic cigarettes, was officially confirmed at the level of laws and regulations, and it was also confirmed that they can be legally and legally produced and sold in China. The high-speed growth of electronic cigarette in the future is relatively clear, which is a good track.

At present, electronic cigarette has two technical routes:

1) Heating does not burn, abbreviated as HNB

It is similar to traditional tobacco, but one is burning and the other is heating. Tobacco burning will produce additional harmful gases, which will be better if heated by light. At present, the new regulation regards the HNB route as the traditional tobacco improvement management, which can be simply understood as that this guy is an improvement of traditional tobacco in China, not electronic cigarettes.

The so-called traditional tobacco management is simply understood as the production of state-owned enterprises and the unified sales of China Tobacco. Considering that tobacco companies are not listed, it is a great advantage for joint ventures that have established R&D and production with tobacco companies.

However, there is no clear regulation on how to manage these joint ventures in the future. In the short term, speculation is still the main concept. Since it is a concept of speculation, the operation rhythm is very important. 

2) Atomization route

In China, electronic cigarette refers to this. The atomization route is to store nicotine, tar and other chemical substances in the smoke cartridge after liquefaction. The user inhales and sprays a stream of water mist. 

This route is obviously different from traditional tobacco and has more playing methods. The most typical way is to add various flavors. Even some aerosolized cigarettes have no nicotine or tar in them, and they are not addictive. They are almost electronic chewing gum.

Because the technical route is completely different from that of traditional tobacco and has a certain technical content, the traditional tobacco factory cannot or cannot do well at present, so the concept of OEM emerged. Smore International (equity joint venture of Yiwei) is the world's largest OEM factory, and BYD Electronics is catching up. 

Judging from the management policy issued last week, it has given a way to the atomization route, and the core is three points. 

  1. Production is allowed, so it is good for the OEM. Whether it is for domestic or foreign cigarette factories, at least the money for production and manufacturing is steadily available. 
  1. Build a trading platform and complete all wholesale transactions online. It was originally thought that the wholesale would be completely handed over to China Tobacco, but now it is at least a market-oriented transaction, so whoever has good products and great influence will have advantages, which will benefit the existing head brands. 
  1. Franchise is required for sales, which is expected. However, the franchise rules have not been released yet. 

The electronic cigarette is also a good track from 0 to 1, but at present, the concept speculation is still the main theme in the short term, which is dominated by hot money, so the relevant stocks fluctuate greatly, and the operation needs to grasp the rhythm. Shaanxi J Ye Zhongke X Xi Hengfeng Z Industry, etc