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]

Core Viewpoint - The article highlights the robust growth trend in the new tobacco industry, as evidenced by British American Tobacco's performance in the first half of 2025, particularly in the heated tobacco and new oral tobacco segments [1]. Group 1: Investment Recommendations - The global HNB (Heated Not Burned) industry is entering a new product lifecycle phase, with major brands actively engaging in market cultivation, leading to accelerated industry expansion [2]. - The vaping market faced challenges in the first half of 2025, with British American Tobacco's vaping business generating £737 million in revenue, a decrease of 15% year-on-year, primarily due to illegal products in the U.S. and Canada, as well as market dynamics in Europe and other regions [2]. - The company has exited markets like Malaysia and Saudi Arabia to improve investment returns, while the U.S. has seen a clearance of illegal disposable brand inventories, which will take time to impact the market [2]. Group 2: Performance Analysis - The overall performance of HNB products remained stable, with British American Tobacco's HNB business achieving £444 million in revenue, a slight increase of 1% year-on-year, and heated stick sales reaching 10.1 billion units, up 2% [3]. - The introduction of Glo Hilo has helped expand market share in trial regions, with a 1.5 percentage point increase in Glo's market share in Sendai [3]. - The new oral tobacco segment has shown significant growth, with revenue reaching £470 million, a 38% increase year-on-year, and sales volume of 5 billion pouches, up 42% [3]. - The U.S. market for new oral tobacco has surged, with a 206% increase in sales, and the Velo brand capturing a market share of 17% by July 2025, making it the fastest-growing brand in this category [3].

Investment Rating - The report maintains an "Outperform" rating for the light industry sector [6][10]. Core Insights - Recent financial reports from major overseas tobacco companies for H1 2025 show overall stable performance, with new tobacco products continuing to drive growth. British American Tobacco, Philip Morris International, and Japan Tobacco have all raised their annual forecasts [18]. Summary by Relevant Sections British American Tobacco (BAT) - For H1 2025, BAT reported revenues of £12.069 billion, a decrease of 2.2% year-on-year, with new tobacco products accounting for 13.7% of total revenue [2][19]. - The revenue from heated tobacco products was £440 million, showing a slight increase of 0.8%, while the revenue from new oral tobacco products surged by 38.1% to £470 million [20][21]. Philip Morris International (PMI) - PMI's Q2 2025 net revenue reached $10.14 billion, reflecting a year-on-year increase of 7.1%, with smoke-free tobacco products making up 41.6% of total revenue [3][28]. - The global shipment of heated tobacco units was 38.8 billion, up 9.2% year-on-year, with IQOS market share in Japan increasing to 31.7% [29]. Japan Tobacco - Japan Tobacco reported Q2 2025 revenues of ¥907.6 billion, a 9.4% increase year-on-year, with heated tobacco product shipments rising by 31.2% [4][38]. - The company has adjusted its annual revenue growth forecast to 8.4% and operating profit growth to 14.6% [38]. Altria - Altria's Q2 2025 revenue was $6.1 billion, down 1.7% year-on-year, with oral tobacco product revenue increasing by 5.9% [5][12]. Market Overview - The light industry sector experienced a relative return of +0.16% last week, despite a decline of 1.59% in the overall sector [6][9]. - Furniture retail sales in June increased by 28.7% year-on-year, while building materials sales saw a decline of 8.9% [6][12]. Investment Recommendations - The report recommends focusing on leading companies in the home furnishing sector, such as Oppein Home, Sophia, and Kuka Home, as well as in the paper and packaging sectors, highlighting Sun Paper and Yutong Technology as key investment opportunities [9][16].

英美烟草：新型烟草盈利修复，HNB 产品 Hilo 表态 积极 [Table_Industry] 轻工制造 [Table_ReportDate] 2025 年 08 月 02 日 行业研究 [Table_ReportType] 行业事项点评 | [Table_StockAndRank] 轻工制造 | | | --- | --- | | 投资评级 | 看好 | | 上次评级 | 看好 | 姜文镪 新消费行业首席分析师 执业编号：S1500524120004 邮箱：jiangwenqiang@cindasc.com 信达证券股份有限公司 CINDA SECURITIES CO.,LTD 北京市西城区宣武门西大街甲127号金隅大厦B 座 邮编：100031 [Table_Title] 英美烟草：新型烟草盈利修复，HNB 产品 Hilo 表态积极 [Table_ReportDate] 2025 年 08 月 02 日 本期内容提要: 证券研究报告 姜文镪，信达证券研究开发中心所长助理，新消费研究中心总经理，上海交通大学硕士， 第一作者发表多篇 SCI+EI 论文，曾就职于国盛证券，带领团队获 2024 年新财富最佳分 ...

Investment Rating - The industry investment rating is "Overweight (Maintain)" [1] Core Insights - The report highlights the potential growth in the HNB (Heated Not Burned) market, particularly with the launch of Glo Hilo in Japan, which is expected to enhance sales performance and accelerate market penetration [4][5] - The report indicates that British American Tobacco's (BAT) revenue for the first half of 2025 is projected to grow by 1%-2%, driven by strong performance in the U.S. market despite an overall decline in industry retail sales [5] - The report emphasizes the importance of technological barriers in the HNB product segment, particularly in heating technology and flavoring processes, which are crucial for enhancing user experience [4] Industry Performance Over the Last Twelve Months - The industry has shown a relative return of 4.33% over the past month, 4.58% over the past three months, and 5.82% over the past twelve months compared to the CSI 300 index [2] - Absolute returns for the same periods are 4.83%, 2.59%, and 13.97% respectively [2] Related Research Reports - Previous reports include insights on the light industry manufacturing sector and the anticipated release of new products in the smart glasses market [3] - The report also references the performance outlook for British American Tobacco in the first half of 2025, focusing on new product launches and market strategies [5]

Investment Rating - The report maintains an "Outperform" rating for the industry [5] Core Insights - The report highlights the expected acceleration in the new tobacco sector for British American Tobacco in the second half of 2025, driven by strong performance in oral tobacco products and the phased launch of new products [2][6] - The 618 shopping festival is anticipated to boost domestic brands in personal care and outdoor sports, with significant growth potential for companies like Morning Glory and others leveraging IP strategies [2][6] Summary by Sections Home Furnishing - The home furnishing sector is expected to gradually recover as consumer confidence improves, with many companies currently valued at historical lows. Key players to watch include custom furniture leaders like Oppein and Sophia [6][10] Paper and Packaging - As of June 6, 2025, prices for various paper products remain stable, with white cardboard prices increasing slightly. The report suggests a cautious outlook due to overall weak terminal demand [6][54] - The paper industry saw a 1.6% year-on-year decline in revenue from January to April 2025, but fixed asset investment increased by 7.6% during the same period [66][68] Light Industry Consumption - The report notes that domestic brands in personal care are rapidly expanding their market presence, particularly through platforms like Douyin. Companies such as Dekang and Baiya are highlighted for their growth potential [6][8] Export Chain - The report indicates a robust outlook for export-oriented companies, with shipping costs rising due to increased demand for goods from China. Companies like Zhongxin and Zhejiang Nature are recommended for investment [6][8] New Tobacco - British American Tobacco's new tobacco segment is projected to see significant growth in the latter half of 2025, with a full-year growth expectation of mid-single digits, driven by strong performance in oral tobacco and the introduction of new products [6][8] Textile and Apparel - The textile and apparel sector has shown resilience, with notable sales increases during the 618 shopping festival. Brands like Anta and Li Ning are recommended for their strong performance [6][10]