Company dynamics

 Tobacco industry's tax profits hit record high: will water pipes take advantage of the wind by 2020

  Recently, the state tobacco monopoly administration released a set of data showing that the total tax revenue and profit as well as the total fiscal payment of the tobacco industry reached a record high in 2019, among which the total tax revenue and profit of the industry and commerce reached 1.Revenue turned in was 1. 177 trillion yuan, up 17%.7 percent in the same period last year, which has caught the attention of the market to some extent, but also reflects the recent development of the industry.

  As we all know,glass bongs pipes the proportion of smokers in the world should not be underestimated, accounting for 1/4 of the world's population.Among them, compared with the international market monopolized by the big four tobacco companies (FEMO international, British American tobacco, Japan tobacco and imperial tobacco), China's tobacco industry is in a monopoly position, with relatively stable development under strict policy supervision, mainly occupied by Chinese tobacco.It can be said that under the strong policy regulation, the development of the tobacco industry is relatively stable and orderly, which also brings good help to the national and local fiscal revenue and economic development, which is also the main reason why the tobacco industry has the highest tax revenue and profits in history.

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  "At the same time, the emergence of a new tobacco industry, dominated by e-cigarettes, has revived the water pipes market as a whole to some extent and may replace traditional tobacco to meet the needs of current market diversification," he said.In terms of market conditions, the global new tobacco market has a compound annual growth rate of 27.9%, $9.It reached $4 billion to $32 in 2013.$3 billion in 2018.The global market for new tobacco is expected to reach $173.China's e-cigarette market is expected to reach $4 billion by 2023, $744 million by 2018 and more than $800 million by 2019.In 2017, China's e-cigarette production rose to 1,000 units.At $651 billion, China's e-cigarette production is expected to reach $753 billion in 2022.

  This is based on the popularity of the e-cigarette industry last year and the expectation that it will continue to attract more money to the agency.In the first three quarters of 2019, 35 e-cigarette brands in China received financing totaling more than 1 billion yuan.

  However, it is worth noting that while oil rigs have to some extent reduced the harmful burden on human health, the rise of these products has led to a sharp increase in the number of young people smoking, which has made it necessary for many countries, including China, to strengthen the regulation of new fragrant tobacco products such as e-cigarettes."Last November, for example, the State Tobacco Monopoly Administration and the state administration of market supervision and management of the released on further protect minors from electronic cigarette, electronic cigarette issued three sets of "blow", as they may sell electronic cigarettes to minors, may not be sold via the Internet electronic cigarettes, not through the Internet electronic cigarette advertisements."Meanwhile, the house of representatives passed a bill on Feb. 28 to ban the sale of fragrant e-cigarettes and other aromatic tobacco products, based on the dangers they pose to young people.The bill would impose new restrictions on the sale of e-cigarettes, ban the flavor of tobacco products, including menthol cigarettes, and impose a new excise tax on nicotine.Affected by the above policies, the development of e-cigarettes has been to some extent restrained, the industry is in a period of adjustment and restructuring.

  More significantly, the adverse effects of the novel coronavirus outbreak have naturally spread to the glass bongs China sub-industry and may result in an "even worse" blow to existing e-cigarette operations, namely, the resumption of production of e-cigarettes has not yet been fully opened due to the outbreak, coupled with the cancellation of online retail channels and the reduction of offline passenger flow.Related enterprises in the industry chain are also affected by the collateral effect, the degree of prosperity is relatively poor, more and more recession.

  However, based on the epidemic situation in the later will continue to be under control, restore normal production enterprises, and deepen the reform of the tobacco in key areas such as policy requirements, the relevant enterprises can continue to pay attention to quality development, strong continue to standardize management, under the supervision of the market by technology and brand cultivation breakthrough point continue to meet the demand of people, to lead the market the pace of development.According to research on brokerage firms, the following stocks may be in the spotlight: