Investment Rating - Industry rating is maintained at "Outperform the Market" [5] Core Insights - The report highlights the implementation of new regulations on e-cigarettes across multiple states in the U.S. starting September 1, 2025, aimed at enhancing public health and product safety [1] - China's e-cigarette exports showed a steady recovery in July 2025, with an export value of $889 million, reflecting a month-on-month increase of 32.04% despite a year-on-year decline of 11.10% [2] - The report suggests a significant restructuring of the e-cigarette market in the U.S. due to stricter regulations, which may lead to a reduction in product variety and changes in supply chain and marketing strategies [1] Summary by Sections E-Cigarette Regulations - New regulations in states like Texas, Wisconsin, Arkansas, and California impose strict limits on product packaging, ingredients, origin, and advertising, with severe penalties for non-compliance [1] Export Data - In the first seven months of 2025, China's e-cigarette exports totaled $5.616 billion, with July exports reaching $889 million, showing a notable recovery in the U.S. market [2] - The U.S. remains the largest market for Chinese e-cigarettes, accounting for 29.41% of total exports, despite a year-on-year decline of 14.17% [2] Investment Opportunities - The report recommends focusing on companies within the vaping supply chain, including Smoore International, Jincheng Pharmaceutical, and others, as well as tobacco supply chain companies like China Tobacco Hong Kong and China Baotong [3]