HK Stock Market Move | HUABAO INTL (00336) surged over 10% in morning trading; domestic HNB entry barriers are being standardized; the company focuses on core HNB technologies.

HUABAO INTL (00336) rose over 10% in morning trading. As of press time, it was up 9.72% at HK$3.725, with a turnover of HK$46.1442 million. On the news front, at the end of July, the State Tobacco Monopoly Administration officially released the draft for public comment of the mandatory national standard for "Heated Cigarettes," which is proposed to take effect six months after its official release. Industrial pointed out that the draft explicitly sets out specific requirements for cigarette sticks, smoking devices, and aerosols for the first time, further shaping the domestic HNB regulatory framework. Domestic HNB will still revolve around the China Tobacco system and the tobacco materials supply chain, which benefits suppliers with China Tobacco customer resources, full-series product capabilities, and early-mover validation advantages. Guolian Minsheng Securities pointed out that 2026 is expected to be a turning point year for the company's operations, with the domestic business downturn likely nearing its end and overseas orders gradually being fulfilled. The overseas new tobacco sector continues to boom, and the mandatory national standard for domestic heated cigarettes has completed the public comment period and entered the standard formulation stage, which is a medium-to-long-term positive for leading enterprises with technical reserves and compliance experience. The company continues to enhance its HNB "comprehensive solution capabilities," maintaining a "Recommended" rating.