E-cigarette concept stocks surged in Hong Kong trading. As of press time, CTIHK (06055) rose 6.13% to HK$34.3, while SMOORE INTL (06969) gained 4.66% to HK$12.35.

The rally follows the State Council's issuance of guidelines for a full-chain crackdown on illegal tobacco-related activities, including strengthened oversight of e-cigarettes. The policy targets unlawful production, wholesale, transportation, sales, and re-importation of e-cigarettes.

CICC Securities maintained a bullish outlook on Hong Kong-listed SMOORE INTL and CTIHK in the tobacco sector. The firm noted SMOORE INTL's growing revenue contribution from its HNB business, supported by optimistic BAT engagement data. Q4 product launches in Europe and recurring cartridge purchases are expected to boost both revenue and margins. Its core vaping segment remains stable, with regulatory consolidation in Europe driving market concentration, while U.S. oversight tightens gradually.

CTIHK demonstrates steady organic growth, benefiting from China's tobacco monopoly system, which ensures strong barriers and predictable order planning. The company also holds potential for overseas expansion, backed by abundant high-quality assets and its role in the parent group's global strategy, offering room for external growth opportunities.