Shares of Huabao International (00336) jumped more than 6% during Thursday's trading session, reflecting growing investor optimism over the evolving regulatory landscape for heated tobacco products in China. At the time of writing, the stock was up 5.21% at HK$3.23, with turnover reaching HK$16.47 million.

The surge comes on the heels of a significant policy development. In July, the State Tobacco Monopoly Administration officially released the draft of the mandatory national standard for "Heated Tobacco Products," which is slated to take effect six months after its formal publication. Analysts at Industrial Securities noted that this draft marks the first time specific requirements for tobacco sticks, devices, and aerosols have been clearly defined, signaling that the domestic HNB regulatory framework is taking more concrete shape.

The brokerage added that the domestic HNB market will continue to revolve around the China Tobacco system and its supply chain for tobacco materials. This structural dynamic is expected to benefit suppliers who possess established relationships with China Tobacco clients, comprehensive product line capabilities, and first-mover validation advantages in the sector.

Meanwhile, analysts at Guojin Securities highlighted that Huabao International stands as a dominant player in China's flavor and fragrance industry. In the realm of new tobacco products, the company is currently capable of independently undertaking complete research and development as well as large-scale production across core segments including HNB-specific flavors, oral nicotine pouch flavors, HNB tobacco sheets, and tobacco-flavored breakable capsules. Additionally, through strategic collaborations, Huabao International has secured OEM manufacturing capabilities for complete HNB cigarette production, further strengthening its competitive position in this rapidly growing market.