Disposable E-cigarette Craze: The Rise Of Hidden Champions in The Industrial Chain Under Policy Relaxation

1. Theme background
Hot events: The State Tobacco Monopoly Administration recently issued two key policies. In September 2024, the "Notice on the Revision and Issuance of the Detailed Rules for the Management of E-cigarette Transactions" clearly insisted on market-determined prices and allowed enterprises to set prices independently; in June 2025, the newly revised "Detailed Rules for the Management of Tobacco Monopoly Licenses for E-cigarette-related Production Enterprises and Wholesale Enterprises" required the marking of approved production capacity, the elimination of unqualified production capacity, and the construction of a full-chain supervision system. These policies mark the transition of the e-cigarette industry from disorderly expansion to standardized and market-oriented development.

Market impact: Driven by policies, the overall theme of disposable e-cigarettes rose by 3.60%, and related stocks performed well. For example, Jinjia shares rose by 9.92% in a single day, and Huabao shares soared by 20.02%, reflecting the pursuit of funds for the industrial chain. The market expects that the new regulations will accelerate the reshuffle of the industry and benefit compliant companies.

Industry trends: The global e-cigarette market continues to expand, especially disposable products are favored for their convenience. China's policy shifts to "market regulation + strict supervision" to promote the upgrading of the industrial chain to high quality and innovation. Smart products such as electronic cigarettes with screens are rising, the technical barriers of upstream links such as flavors and nicotine are increasing, and the demand for traditional supporting products such as cigarette labels is stable. This reflects the trend of integration between consumer electronics and health supervision, and companies need to seek innovation in compliance.

2. Analysis of core companies
Product brand link
Yinghe Technology: Sub-segment: Disposable electronic cigarette product manufacturing. Theme association: Its brand SKE Crystal has the fourth largest market share in the UK, showing its international layout strength. Core highlights: The stock price rose 4.47% in a single day, reflecting the market's recognition of its brand premium. Potential opportunities: Under the policy relaxation, the independent pricing power is enhanced, and it can expand emerging markets through the "Belt and Road".

Jinjia Shares: Sub-segment: Electronic cigarette brand operation and export. Theme association: Brand FOOGO exports to Germany and the UK, and the revenue of cigarette labels ranks second in A-shares at 1.949 billion, reflecting the synergy of the entire industrial chain. Core highlights: The stock price soared 9.92% in a single day, and exports and domestic sales were driven by favorable policies. Potential opportunities: The new regulations eliminate low-end production capacity, and its compliance advantages may seize a larger share.

Shunhao Shares: Sub-segment: E-cigarette product research and development. Theme related: Self-owned brand Yilong, layout of low-temperature non-combustion electric heating technology. Core highlights: The stock price rose by 6.75%, and technological differentiation attracted the attention of funds. Potential opportunities: Under the strengthening of supervision, innovative products such as heaters may become a growth point.

Xiaosong Shares: Sub-segment: Brand investment and agency. Theme related: Invest in the brand Bode, and act as an agent for Bode to promote along the "Belt and Road"; the equity participation in Hong Kong and China Bio is the first batch of Gaochun nicotine production enterprises. Core highlights: The stock price rose by 4.48%, showing that capital is optimistic about its diversified layout. Potential opportunities: The policy allows independent pricing, and the agency business can quickly increase the volume by taking advantage of the channel advantage.

Tianyin Holdings: Sub-segment: Brand investment and retail agency. Theme related: Invest in the brand Xiaoye, and act as an agent for Xiaoye, Bode, Jier, Vita, etc. Core highlights: The stock price rose slightly by 1.33%, and the retail network supports the brand matrix. Potential opportunities: Under the market-determined price mechanism, the profit margin of the wholesale link may increase.

Retail link
Tianyin Holdings: Segment: E-cigarette distribution and retail. Subject matter association: Agent for multiple brands such as Xiaoye and Bode, covering wholesale and terminal. Core highlights: Same as above, the retail business integrates brand resources. Potential opportunities: Under the new regulations, wholesale companies can set their own prices and optimize the cost structure.

Aishide: Segment: E-cigarette store operation. Subject matter association: Access to multi-brand exhibitions and form close cooperative relationships with major brands