E-cigarette-related listed companies see significant growth in the first quarter of 2019

With the industry chain of the vape industry becoming more and more clear, financing and brand information are constantly entering the vape industry. With the intensive disclosure of the first quarter reports of listed companies in 2019, the listed companies related to electronic cigarettes have also received great attention. At present, most of the electronic cigarette-related listed companies have issued the first quarter of 2019 reports, and we can know the electronic cigarette enterprises through the relevant financial reports.

Some time ago, e-cigarette new three-board enterprise Feelm (834742.OC) revenue in the first quarter of 2019 reached 1.399 billion yuan, an increase of 155.69%; net profit attributable to listed company shareholders was 384 million yuan, an increase of 311.28%; The net cash flow from operating activities was RMB 320 million, a year-on-year increase of 246.70%. According to Feelm, as of March 31, 2019, the undistributed profit attributable to the parent company’s consolidated statements was 7.7 billion yuan, and the undistributed profit of the parent company was 761 million yuan. The capital reserve is 700.05 million yuan (including the capital reserve formed by the stock issuance premium is 700.05 million yuan, and the other capital reserve is 0 yuan). Distribution of profits to all shareholders for every 10 shares generating a bonus of 100.00 yuan (including tax).

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Then how is the revenue of other listed companies related to electronic cigarettes?

1. ShenZhen JinJia Group Co.,Ltd. (002191.SZ)

Shenzhen Jinjia Group Co., Ltd. released its quarterly report in 2019. Q1 realized revenue of 1.010 billion yuan in 2019, an increase of 24.08% compared with the same period last year; realized net returns to the mother company of 259 million yuan, an increase of 21.81% over the same period last year; realized net returns to the mother company of 254 million yuan after deduction, an increase of 21.30% over the same period last year.

Jinjia tobacco label and color box are working together to promote high revenue growth. The gross profit rate increases annually, and the cost control effect is remarkable. With the continuous promotion of large packaging, the distribution of new electronic cigarettes, it is estimated that the company will achieve net returns of 8.91, 10.31 and 1.163 billion yuan in 2019-2021, an increase of 22.88%, 15.65% and 12.81% over the same period of last year.

2. Shanghai Shunho New Materials Technology Co.,Ltd. (002565.SZ)

On the evening of April 24, the Shanghai Shunho New Materials Technology Co.,Ltd. annual performance report for 2018 and the first quarter report for 2019 were also disclosed. In 2018, the company realized a total revenue of 2.055 billion yuan, an increase of 5.45% over the previous year. In the first quarter of 2019, the company realized operating income of 544 million yuan, an increase of 14.95% compared with the same period last year, and realized deduction of non-net profit of 227 million yuan belonging to shareholders of listed companies, an increase of 57.07% compared with the same period last year.

Shunho’s new tobacco business focuses on low-temperature heat bot burn products, creating a core industrial chain consisting of R&D, marketing and supply chain. The company has developed a series of MOX-based products (MOX-Edge, MOX-ReVo, MOX-Glant, MOX-IOH, etc.), and its main products are MOX-Edge, MOX-Glant, etc., which are mainly sold to domestic and Japanese markets. In Korea and other foreign markets, the company has developed ODM cooperative development business with customers in India and South Korea. In order to better utilize the resources and business advantages of all parties and promote the cooperation and development of new tobacco products (including heat not burn new tobacco products), Green Xinfeng Technology (Hong Kong) Co., Ltd. invested in SINO-JK TOBACCO (CAMBODIA) in Cambodia. CO., LTD, the project mainly produces low-temperature heat not burn cartridges, suitable for low-temperature heat not burn product, and the products will be legally sold in overseas legal areas in the future. Currently, the project is under construction in the early stage and it is expected to be trial production in the second half of the year.

3. HBGLOBAL(00336.HK)

HBGLOBAL (00336.HK) announced that its subsidiary Huabao Stock (300741.SZ) issued a performance forecast for the first quarter of 2019. Huabao Stock expected net profit of 263 million yuan to 305 million yuan attributable to shareholders of Listed Companies in the first quarter, an increase of 5% to 10% over the same period last year.

4. EVE Energy Co., Ltd (300014.SZ)

EVE Energy Co., Ltd. released its first quarter results for 2019. The forecast shows that EVE Energy Co., Ltd. is expected to have a net profit of 163,305,600 yuan to 186,557.45 billion yuan in January-March 2019, compared with 74,229,800 yuan in the same period of last year, an increase of 120% to 150%.

Yiwei Lithium Energy said that the main reason for the increase in the first quarter of 2019 compared with the same period last year was:

  • Successfully expand the non-automotive market of ternary cylindrical batteries, driving the company’s steady growth in performance;
  • The production capacity of power battery business is launched in an orderly manner, the performance has achieved positive growth, and the profit level has increased significantly.
  • Actively expand the emerging Internet of Things market, and achieve phased results. The business of lithium-ion batteries has developed steadily.
  • The performance of Shenzhen Feelm Co., Ltd. exceeded expectations, resulting in a substantial increase in the company’s investment returns over the same period of last year.

5. Anhui Genuine New Materials Co.,Ltd. (603429.SH)

Anhui Genuine New Materials Co., Ltd. the first quarterly report of 2019 officially disclosed that the total operating income was 153 million yuan, compared with 59.06% last year, the net profit was 41.9907 million yuan, an increase of 37.61% compared with last year, the basic EPS was 0.22 yuan, the average ROE It is 6.55%. In 2018, the company acquired Dafeng Technology and entered the field of tobacco labels. In 2017-2018, the company signed a new tobacco cooperation agreement with Anhui China Tobacco, and together with Kunming Xuguang, set up a group of Jiyouguangyu Company to develop vapes.

6. Japan Tobacco

Due to the strong pricing ability of international and domestic tobacco businesses, Japan Tobacco‘s adjusted operating profit increased by 7.2% in the first quarter of 2019 at a fixed exchange rate. If the impact of exchange rate changes was considered, the profit fell by 6.3%.

Masamichi Terabatake, President and CEO of JT Group, said, “We have achieved strong results since 2019. We are confident that pricing will continue to be the main driver of our earnings growth. Our revenue comes from major markets and acquisitions in Japan. The market share of cigarettes is growing.”

Terabatake expressed confidence in the company’s low-risk products, including Ploom Tech + and Ploom S, which were launched in Japan in January 2019. Terabatake added that the company is poised to achieve its operating profit target for the “neutral adjustment” of its full-year currency, while still investing in traditional tobacco products and low-risk products to achieve its long-term growth targets.

7. Philip Morris International

Philip Morris International sales of iQOS heating devices in the first quarter was 11.5 billion.

In the first quarter of 2019, tobacco giant Philip Morris International’s tobacco sales increased by 1/5, and cigarette sales were almost flat year-on-year, mainly due to the increase in iQOS sales. The company’s sales growth in Africa and the Middle East offset the decline in sales in Europe. The sales of iQOS heating devices were 11.5 billion.

8. South Korea’s HNB products

According to MENUCN.com report, due to anti-smoking campaigns and rising prices, South Korea’s cigarette sales in the first quarter of this year fell by 0.2% compared with the same period in 2018. In the first quarter, sales of HNB tobacco products increased by 33.6% year-on-year to 92 million boxes, accounting for 11.8% of the country’s total tobacco market, compared with 8.8% in the same period last year.

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Vaping – the rise in five charts


Listed companies in the vape field are growing more rapidly in the first quarter of 2019. The whole vape industry is in prosperity now.

Though this industry is under the threat of laws and policies, it can still thrive when making enough money to corrupt the law and rule makers like groups of CPSC, FDA, American Heart Association, China Tobacco, Legislative Council of the Hong Kong etc.

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