Cinda: FDA approves fruit-flavored electronic cigarettes for the first time, compliance market expected to accelerate improvement.

Cinda released a research report stating that the United States, as a global benchmark for the new tobacco market, is expected to drive more countries to optimize review standards and help the continuous increase in the penetration rate of new tobacco products. It is recommended to pay attention to the core supplier of the global new tobacco market, SMOORE INTL (06969), which is deeply integrated with the core brands of the global atomization market, accelerating the growth curve of HNB to become the second. Cinda's main points are as follows: Event Recently, the FDA announced the approval of four e-cigarette cartridges from Glas through PMTA, with flavors including Classic Menthol, Fresh Menthol, Gold, and Sapphire. This authorization marks the first time the FDA has approved the market entry of non-tobacco/non-menthol flavored e-cigarettes. The use of underage identification technology is expected to be widely used in the future. The FDA stated that Glas's PMTA application can effectively prove that its technology can reduce underage use. Glas requires users to verify their age and ID through their mobile phones and connect to the device via Bluetooth. If the phone connection is disconnected, the e-cigarette device will not function properly, and the app may randomly verify the user's identity. Most adults (over 21) can successfully verify their age and use it easily, but it may be challenging for teenagers. In addition, the FDA emphasized that any non-tobacco flavor that can prove its benefits to adult smoking cessation outweigh the potential risks may still obtain PMTA approval in the future. Compliance market continues to recover, core suppliers are expected to benefit fully. The bank believes that the FDA policy review is clearly leaning in a positive direction, and global core atomization suppliers like SMOORE INTL have already developed underage identification technology. Subsequently, their core customer products and proprietary brands are expected to accelerate approval. In addition, after Trump took office for 25 years, the FDA continued to strengthen enforcement efforts. By volume, the market share of disposable products fell from a high of 62.1% in June to 56.5% in September, while the market share of cartridge-based products grew from 37.8% to 43.4%. The bank predicts that in the future, more compliant flavors will take over the market share of disposable products, the trend of compliance market recovery is expected to accelerate, and core suppliers are likely to continue to benefit. Risk warning: Fluctuations in raw materials and exchange rates, new tobacco penetration rates may not increase as expected, and trade frictions may intensify.