Changes in Hong Kong stocks | Huabao International (00336) rose more than 8% in the domestic HNB industry standardization process and took a key step in the company's fragrance ingredients to accelerate the international transformation

The Zhitong Finance App learned that Huabao International (00336) rose more than 8%. As of press release, it had risen 8.74% to HK$3.36, with a turnover of HK$409.316 million.

According to the news, recently, the mandatory national standard for “heated cigarettes” (draft for comments) was released. The comment period ends on September 26, and it is planned to be officially implemented 6 months after publication. GF Securities said that the institutional conditions for domestic HNB to shift from technical reserves and overseas exploration to standards-first and standardized entry are being formed. If pilots, licenses and channel policies are gradually implemented in the future, the industry is expected to enter the stage of product verification and preparation for industrialization. CITIC Construction Investment, on the other hand, believes that the liberalization of the domestic market for HNB products continues to advance, and that many tobacco supporting supply chain companies have taken the lead in laying out related links in the industrial chain, and are expected to benefit from the market opportunities brought about by the liberalization of HNB.

Cinda Securities said earlier that Huabao International has accumulated deep raw materials and fragrance capabilities to build a strong moat. In 26 years, all business segments have shown inflection points in growth, and profitability is expected to expand. Among them, the company's revenue for fragrance ingredients in '25 was 807 million yuan (+2.0% YoY), and operating profit was 79 million yuan (23 million yuan in '24). The bank believes that the company's fragrance ingredients will accelerate the international transformation, actively implement the Southeast Asian business layout, and build local teams in overseas markets such as Indonesia smoothly. Furthermore, the company focuses on new product research and development, and is expected to maintain steady growth in the future.