Surge in E-cigarette Stocks as Industry Grows Rapidly

Aug.30.2022
Surge in E-cigarette Stocks as Industry Grows Rapidly
Chinese e-cigarette stocks rise as over 200 companies obtain production permits and 55,000 retailers obtain retail permits.

On August 30th, several stocks in the electronic cigarette sector experienced bullish trading.


Megmeet and Penghui Energy both reported strong earnings growth today, with Megmeet's stock price hitting the daily limit and Penghui's rising over 16%. In addition, other technology companies such as Dafu Technology and Tonglian Precision also saw gains of over 10%, while JiJia Shares, Tianyin Holding, and Yiyatong also saw their stock prices rise.


According to reports, as of August 6th, 2022, over 200 companies have received licenses to produce electronic cigarettes, while 55,000 merchants have obtained licenses to sell them. Among them:


The brand side reports that 12 e-cigarette brands have obtained licensing permits, with a total pod quota exceeding 600 million. Among downstream customers of Smoore, Yueke, Xuejia, Youzi, and Mod pod quotas rank in the top four, with 329 million pods, 77.3 million pods, 74 million pods, and 33 million pods respectively, accounting for approximately 90% of the total.


Production side: Over 190 production enterprises have obtained electronic cigarette production licenses, including three subsidiaries of Smoore, as well as BYD Electronics, Jinjia Shares, China Boton, and Huabao Shares.


Retail: Approximately 50,000 merchants have been confirmed to receive electronic cigarette retail licenses. In a survey of electronic cigarette shop owners in July, about 90% had already obtained their licenses, while 3% had applied but not yet received them, and about 7% planned to apply as part of the second batch starting in October. After obtaining the licenses, these shop owners plan to transform their stores into collection shops that display various brands.


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