Investment Rating - Industry rating is maintained as "Outperform the Market" [7] Core Insights - British American Tobacco (BAT) is accelerating product and channel strategy adjustments, with high-end products entering travel retail channels for the first time [1] - In the first half of 2025, China's e-cigarette export value decreased, with the UK becoming the largest export destination, replacing the US [2][3] Summary by Sections Product and Channel Strategy - BAT is collaborating with Gebr. Heinemann to promote reusable high-end devices with eco-friendly designs, including features like a ClearView™ display and Bluetooth connectivity [1] - The focus is on expanding travel retail business, particularly in airport retail environments [1] Export Data - In the first half of 2025, the export value of e-cigarettes and similar devices from China was $1.5 billion, a year-on-year increase of 8.94%, while other nicotine products saw a 19.37% decrease [2] - The average export price for e-cigarettes was $3.68 per unit, with a June export price of $45.33 per kilogram [2] Regional Performance - The top five export destinations in the first half of 2025 accounted for 61.71% of total exports, with the UK taking the lead in June [3] - The US remains the largest market despite a 14.31% year-on-year decrease in export value [3] Market Recommendations - Suggested companies to focus on include Smoore International, Yinghe Technology, and others in the vaping supply chain [5]