Shares of Huabao International (00336) jumped more than 12% during the morning session. As of the latest update, the stock was up 12.22% at HK$3.81, with trading turnover reaching HK$57.46 million.

In late July, the State Tobacco Monopoly Administration officially released the draft of the mandatory national standard for "Heated Tobacco Products," with the standard expected to take effect six months after its formal publication. Analysts at Guolian Minsheng Securities noted that this draft marks the first time specific requirements for tobacco sticks, devices, and aerosols have been clearly defined, further shaping the domestic regulatory framework for HNB products.

The domestic HNB market is expected to continue revolving around the China Tobacco system and its tobacco material supply chain, which benefits suppliers with established relationships with China Tobacco clients, comprehensive product capabilities, and early-mover validation advantages.

Guolian Minsheng Securities highlighted that 2026 represents an inflection point for the company's operations, as the downturn in domestic business may be nearing its end while overseas orders gradually come to fruition. The overseas new tobacco sector continues to maintain strong momentum, and with the domestic mandatory standard for heated tobacco having completed its public comment period and entering the standard-setting phase, this bodes well in the medium to long term for leading companies equipped with strong technical reserves and compliance experience.

The company continues to enhance its "comprehensive solution capabilities" for HNB products, supporting the maintained "Buy" rating.