Investment Rating - The report does not provide a specific investment rating for the company [1] Core Views - The company reported a solid performance with a total revenue of 13.074 billion yuan in 2024, representing a year-on-year increase of 10.5%, and a net profit attributable to the parent company of 854 million yuan, up 42.6% year-on-year [1] - The revenue for the second half of 2024 was 4.370 billion yuan, showing a year-on-year growth of 6.8%, with a net profit of 210 million yuan, which is a 48.4% increase year-on-year [1] - The company improved its profitability significantly through product and channel optimization and pricing strategy adjustments, achieving an annual gross margin of 10.5%, up 1.3 percentage points year-on-year [1] Revenue Breakdown - **Tobacco Leaf Imports**: Total revenue was 8.254 billion yuan, with a year-on-year increase of 2.2%. The volume and average price changed by -4.5% and +7.0% respectively [2] - **Tobacco Leaf Exports**: Revenue reached 2.062 billion yuan, up 24.8% year-on-year, with volume and average price changes of +18.4% and +5.4% respectively [2] - **Cigarette Exports**: Revenue was 1.574 billion yuan, a 30.2% increase year-on-year, with volume and average price changes of +19.1% and +9.3% respectively [2] - **New Tobacco Products Exports**: Revenue was 135 million yuan, up 4.0% year-on-year, with volume and average price changes of +12.5% and -7.6% respectively [3] - **Brazil Operations**: Revenue was 1.050 billion yuan, a 37.0% increase year-on-year, with volume and average price changes of -2.4% and +40.3% respectively [3] 2025 Outlook - The company expects to continue improving profitability and maintain a stable increase in per-share dividends [4] - It aims to focus on both organic and external growth, enhancing its capital operation platform [4] - The company plans to dynamically assess international conditions to ensure a stable supply of high-quality tobacco leaves and cultivate growth in emerging markets [4] - Continued focus on cigarette brand development and optimization of product and brand matrix is anticipated, along with an expansion of the cigar business and tax markets [4] - The company is positioned as the exclusive operational entity for international business expansion and related trade, which is expected to drive future growth [5] Financial Projections - The company forecasts net profits of 970 million yuan, 1.122 billion yuan, and 1.222 billion yuan for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 19.5X, 16.9X, and 15.5X [5] - Key financial indicators for 2024A include total revenue of 13.074 billion yuan, net profit of 854 million yuan, and an EPS of 1.23 yuan [7]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a high growth in profits for 2024, driven by its cigarette export business, tobacco leaf import business, and operations in Brazil. The total revenue for 2024 reached 13.074 billion HKD, a year-on-year increase of 10.5%, while the net profit attributable to shareholders was 854 million HKD, up 42.6% [4][5] - The company is positioned as the designated overseas platform for China National Tobacco Corporation, focusing on capital market operations and international business expansion. The business model ensures stable profitability and excellent cash flow, with new growth points from cigarette and new tobacco product exports [4] - The company is expected to achieve total revenues of 14.396 billion HKD, 15.648 billion HKD, and 16.900 billion HKD for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 10%, 9%, and 8% [4][5] Financial Performance Summary - For 2024, the company achieved a revenue of 13,074 million HKD, with a year-on-year growth of 10%. The net profit attributable to shareholders was 854 million HKD, reflecting a 43% increase [7] - The company forecasts net profits of 939 million HKD, 1,044 million HKD, and 1,171 million HKD for 2025, 2026, and 2027 respectively, with growth rates of 10%, 11%, and 12% [5][7] - The earnings per share (EPS) are projected to be 1.36 HKD, 1.51 HKD, and 1.69 HKD for 2025, 2026, and 2027 respectively, with corresponding price-to-earnings (P/E) ratios of 20.14, 18.12, and 16.15 [5][7] Business Segment Performance - The tobacco leaf import business reported an import volume of 111,980 tons, a decrease of 4.5%, with revenue of 8,254.2 million HKD, up 2.2%. The gross profit was 825.6 million HKD, an increase of 12.7% [4] - The tobacco leaf export business saw an export volume of 83,487 tons, a year-on-year increase of 18.4%, with revenue of 2,061.5 million HKD, up 24.8%, and gross profit of 83.9 million HKD, up 85.8% [4] - The cigarette export business achieved an export volume of 3,339,700 thousand sticks, a growth of 19.1%, with revenue of 1,573.6 million HKD, up 30.2%, and gross profit of 277.4 million HKD, up 69.1% [4]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [5]. Core Insights - The company reported a revenue of HKD 13.07 billion for 2024, representing a year-on-year increase of 10.5%. The gross profit reached HKD 1.38 billion, up 26.6%, and the net profit attributable to shareholders was HKD 854 million, reflecting a 42.6% increase, exceeding previous profit forecasts [1][3]. - The company plans to focus on both organic growth and strategic acquisitions to enhance its business scale, operational quality, and profitability by 2025 [3]. - The company holds a unique position as the exclusive operator for international tobacco business under the China National Tobacco Corporation, which is expected to benefit from overseas expansion and mergers [4]. Revenue Breakdown - The revenue from tobacco leaf exports was HKD 2.06 billion, up 24.8%, accounting for 15.8% of total revenue, with a gross margin of 4.1% [9]. - The revenue from tobacco leaf imports was HKD 8.25 billion, a 2.2% increase, making up 63.1% of total revenue, with a gross margin of 10.0% [9]. - The revenue from cigarette exports was HKD 1.57 billion, increasing by 30.2%, representing 12.0% of total revenue, with a gross margin of 17.6% [9]. - The revenue from new tobacco products exports was HKD 140 million, up 4.0%, accounting for 1.0% of total revenue, with a gross margin of 5.2% [9]. - The revenue from operations in Brazil was HKD 1.05 billion, a 37.0% increase, representing 8.0% of total revenue, with a gross margin of 17.5% [9].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a high growth in profits for 2024, driven by its cigarette export business, tobacco leaf import business, and operations in Brazil. The total revenue for 2024 reached 13.074 billion HKD, a year-on-year increase of 10.5%, while the net profit attributable to shareholders was 854 million HKD, up 42.6% [4][5] - The company is positioned as the designated overseas platform for China National Tobacco Corporation, focusing on capital market operations and international business expansion. The business model ensures stable profitability and excellent cash flow, with new growth points from cigarette and new tobacco product exports [4] - The company is expected to achieve total revenues of 14.396 billion HKD, 15.648 billion HKD, and 16.900 billion HKD for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 10%, 9%, and 8% [4][5] Financial Summary - For 2024, the company achieved a revenue of 13,074 million HKD, with a year-on-year growth of 10%. The net profit attributable to shareholders was 854 million HKD, reflecting a 43% increase [7] - The projected financials for 2025 to 2027 indicate a steady increase in revenue and net profit, with net profit expected to reach 939 million HKD in 2025, 1,044 million HKD in 2026, and 1,171 million HKD in 2027 [7][9] - The company’s earnings per share (EPS) is projected to grow from 1.23 HKD in 2024 to 1.69 HKD in 2027, with corresponding price-to-earnings (P/E) ratios decreasing from 19.31 to 16.15 over the same period [7][9]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [5]. Core Insights - The company reported a revenue of HKD 13.07 billion for 2024, representing a year-on-year increase of 10.5%. The gross profit reached HKD 1.38 billion, up 26.6%, and the net profit attributable to shareholders was HKD 854 million, reflecting a 42.6% increase, exceeding previous profit forecasts [1]. - The company plans to focus on both organic growth and strategic acquisitions to enhance its business scale, operational quality, and profitability by 2025. It aims to ensure a steady increase in dividend per share while actively seeking high-quality targets that align with its development strategy [3]. - The company holds a unique position as the exclusive operator for international tobacco business under the China National Tobacco Corporation, which is expected to benefit from overseas expansion and mergers and acquisitions [4]. Revenue Breakdown - The revenue from tobacco leaf exports was HKD 2.06 billion, a year-on-year increase of 24.8%, accounting for 15.8% of total revenue, with a gross margin of 4.1% [9]. - The revenue from tobacco leaf imports was HKD 8.25 billion, up 2.2%, making up 63.1% of total revenue, with a gross margin of 10.0% [9]. - The revenue from cigarette exports was HKD 1.57 billion, a 30.2% increase, representing 12.0% of total revenue, with a gross margin of 17.6% [9]. - The revenue from new tobacco products exports was HKD 140 million, a 4.0% increase, accounting for 1.0% of total revenue, with a gross margin of 5.2% [9]. - The revenue from operations in Brazil was HKD 1.05 billion, a 37.0% increase, representing 8.0% of total revenue, with a gross margin of 17.5% [9].

Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [5]. Core Insights - The company reported a revenue of HKD 13.07 billion and a net profit attributable to shareholders of HKD 854 million for 2024, representing year-on-year growth of 10.5% and 42.6% respectively [1]. - The company achieved strong performance in its tobacco leaf and cigarette export businesses, with significant revenue increases across various segments [2]. - The gross margin and net margin for 2024 were 10.5% and 6.9%, showing improvements from the previous year, driven by better cost management and product mix optimization [3]. - The company is expected to continue enhancing its profitability through internal growth and potential acquisitions, focusing on capital operations [4]. Financial Performance Summary - For 2024, the company reported a revenue of HKD 13.07 billion, with a growth rate of 10.5% compared to 2023 [8]. - The net profit attributable to shareholders for 2024 was HKD 854 million, reflecting a growth rate of 42.6% [8]. - The earnings per share (EPS) for 2024 was HKD 1.23, with projections for 2025-2027 being HKD 1.48, HKD 1.73, and HKD 2.01 respectively [5][8]. - The company’s return on equity (ROE) for 2024 was 28.41%, indicating strong profitability [8].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company's performance slightly exceeded expectations, with 2024 revenue reaching HKD 13.07 billion, a year-on-year increase of 10% [7] - The change in product structure has driven an increase in gross margin, with a gross margin of 10.5% for 2024, up 1.3 percentage points year-on-year [7] - The company is positioned as the only publicly listed entity under China Tobacco's international operations, with stable development in its main business of tobacco leaf imports and exports [7] Financial Performance Summary - For 2024, total revenue is projected at HKD 13,074 million, with a year-on-year growth of 10.46% [1] - The net profit attributable to the parent company is expected to be HKD 853.74 million, reflecting a year-on-year increase of 42.58% [1] - Earnings per share (EPS) for 2024 is forecasted at HKD 1.23, with a price-to-earnings (P/E) ratio of 22.16 [1] Business Segment Performance - Revenue from various business segments for 2024 includes HKD 8.25 billion from tobacco leaf imports, HKD 2.06 billion from tobacco leaf exports, HKD 1.57 billion from cigarette exports, HKD 140 million from Brazilian operations, and HKD 1.05 billion from new tobacco products [7] - The gross margin for different business segments is 10% for tobacco leaf imports, 4% for tobacco leaf exports, 18% for cigarette exports, 5% for Brazilian operations, and 18% for new tobacco products [7] Future Earnings Forecast - The company has revised upward its profit expectations for 2025 and 2026, with projected net profits of HKD 962.01 million and HKD 1,060.13 million respectively [7] - The forecast for 2027 net profit is HKD 1,187.23 million, with corresponding P/E ratios of 20, 18, and 16 for the years 2025, 2026, and 2027 respectively [1]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's 2024 performance slightly exceeded expectations, with total revenue reaching HKD 13.07 billion, a year-on-year increase of 10.46%. The net profit attributable to shareholders was HKD 853.74 million, reflecting a year-on-year growth of 42.58% [7] - Changes in product structure have led to an improvement in gross profit margins, with the overall gross margin for the company at 10.5%, up 1.3 percentage points year-on-year [7] - The company is positioned as the only publicly listed entity under China Tobacco's international operations, with stable development in its main business of tobacco leaf import and export, and potential for further integration of overseas industrial resources [7] Financial Summary - Total revenue projections for the company are as follows: HKD 13.07 billion in 2024, HKD 14.38 billion in 2025, HKD 15.48 billion in 2026, and HKD 16.58 billion in 2027, with respective year-on-year growth rates of 10.46%, 10.01%, 7.63%, and 7.13% [1] - The net profit attributable to shareholders is forecasted to be HKD 853.74 million in 2024, HKD 962.01 million in 2025, HKD 1.06 billion in 2026, and HKD 1.19 billion in 2027, with year-on-year growth rates of 42.58%, 12.68%, 10.20%, and 11.99% respectively [1] - The earnings per share (EPS) are projected to be HKD 1.23 in 2025, HKD 1.39 in 2026, HKD 1.53 in 2027, and HKD 1.72 in 2028, with a corresponding price-to-earnings (P/E) ratio decreasing from 22.16 in 2024 to 15.93 in 2027 [1][8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company's performance slightly exceeded expectations, with 2024 revenue reaching HKD 13.07 billion, a year-on-year increase of 10% [7] - The change in product structure has driven an increase in gross margin, with a gross margin of 10.5%, up 1.3 percentage points year-on-year [7] - The company is positioned as the only publicly listed entity under China Tobacco's international operations, with stable development in its main business of tobacco leaf import and export [7] Financial Performance Summary - For 2024, total revenue is projected at HKD 13,074 million, with a year-on-year growth of 10.46% [1] - The net profit attributable to the parent company is expected to be HKD 853.74 million, reflecting a year-on-year increase of 42.58% [1] - Earnings per share (EPS) for 2024 is forecasted at HKD 1.23, with a price-to-earnings (P/E) ratio of 22.16 [1] Business Segment Performance - Revenue from various business segments for 2024 includes HKD 8.25 billion from tobacco leaf imports, HKD 2.06 billion from tobacco leaf exports, HKD 1.57 billion from cigarette exports, HKD 140 million from Brazilian operations, and HKD 1.05 billion from new tobacco products [7] - The company’s gross margin for different business segments is 10% for tobacco leaf imports, 4% for tobacco leaf exports, 18% for cigarette exports, 5% for Brazilian operations, and 18% for new tobacco products [7] Future Earnings Forecast - The company has revised upward its profit expectations for 2025 and 2026, with projected net profits of HKD 9.6 billion and HKD 10.6 billion respectively, and has added a forecast for 2027 with a net profit of HKD 11.9 billion [7] - The corresponding P/E ratios for 2025, 2026, and 2027 are expected to be 20, 18, and 16 respectively [7]

Financial Performance - The total revenue for the year ended December 31, 2024, was HKD 13,074,243, representing a 10.5% increase compared to HKD 11,836,221 in 2023[4] - Gross profit increased by 26.6% to HKD 1,377,642 from HKD 1,088,324 year-on-year[4] - The net profit attributable to equity holders of the company rose by 42.6% to HKD 853,735 from HKD 598,773 in the previous year[4] - Basic and diluted earnings per share increased to HKD 1.23, up from HKD 0.87 in 2023[4] - The total dividend for the year is HKD 0.46 per share, reflecting a 43.8% increase compared to the previous year[4] - Pre-tax profit for 2024 was HKD 1,115,524,000, compared to HKD 859,059,000 in 2023, indicating a year-over-year increase of 29.9%[42] - The company reported a net profit of HKD 902,802,000 for the year ended December 31, 2024[22] - Other income net increased by 32.1% to HKD 120.4 million, driven by higher interest income from increased deposit rates and short-term bank deposits[73] Assets and Liabilities - Non-current assets decreased to HKD 444,363 from HKD 526,783 year-on-year[6] - Current assets increased significantly to HKD 9,372,292 from HKD 6,213,612, driven by higher inventory levels[6] - Total liabilities increased to HKD 6,534,481 from HKD 3,997,613, indicating a rise in trade and other payables[6] - The company's total equity attributable to equity holders increased to HKD 3,005,174 from HKD 2,493,671, reflecting strong retained earnings growth[7] - The total assets for the reporting segments were HKD 9,816,655,000 as of December 31, 2024[22] - The total liabilities for the reporting segments were HKD 6,629,385,000 as of December 31, 2024[22] - The company's total assets as of December 31, 2023, amounted to HKD 6,740,395,000, while total liabilities were HKD 4,045,103,000[24] Revenue Sources - Sales of tobacco leaf products amounted to HKD 11,363,153,000, up from HKD 10,496,971,000, representing a growth of 8.2%[16] - Revenue from China (excluding special administrative regions) increased to HKD 9,553,618,000 in 2024, up from HKD 9,015,260,000 in 2023, representing a growth of 5.95%[27] - The revenue from a single customer exceeded 10% of total revenue, amounting to approximately HKD 8,256,471,000 for 2024, compared to HKD 8,079,031,000 in 2023[16] Costs and Expenses - The company's financing costs rose by 33.9% to HKD 224,096 from HKD 167,396 in 2023[4] - Employee costs, including director remuneration, rose to HKD 107,331,000 in 2024 from HKD 102,807,000 in 2023, marking an increase of 4.9%[33] - The company's depreciation and amortization expenses totaled HKD 23,646,000 in 2024, compared to HKD 19,989,000 in 2023, an increase of 18.3%[36] - The effective tax expense for 2024 was HKD 212,722,000, up from HKD 166,686,000 in 2023, reflecting a rise of 27.6%[42] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.15 per ordinary share for 2024, totaling HKD 103,752,000, while the final dividend proposed is HKD 0.31 per share, compared to HKD 0.32 in 2023[49] - The board proposed a final dividend of HKD 0.31 per share for the year ending December 31, 2024, totaling approximately HKD 214.4 million based on 691,680,000 shares issued[96] Operational Highlights - The company’s operations include tobacco leaf export, import, cigarette export, new tobacco product export, and operations in Brazil[15] - The import volume of leaf tobacco products was 111,980 tons, a decrease of 5,236 tons or 4.5% year-on-year, while revenue from this segment increased by HKD 8.25 billion, up 2.2%[64] - The export volume of leaf tobacco products rose to 83,487 tons, an increase of 12,978 tons or 18.4%, with revenue growing to HKD 2.06 billion, up 24.8%[65] - The export volume of cigarettes reached 3,339.7 million sticks, a year-on-year increase of 535.8 million sticks or 19.1%, with revenue of HKD 1.57 billion, up 30.2%[66] - The export volume of new tobacco products was 761.9 million sticks, increasing by 84.6 million sticks or 12.5%, with revenue of HKD 135.2 million, up 4.0%[68] - The Brazilian operations exported 31,627 tons of leaf tobacco products, a decrease of 769 tons or 2.4%, while revenue increased to HKD 1.05 billion, up 37.0%[69] Strategic Initiatives - The company is focusing on enhancing supply chain efficiency and optimizing pricing strategies to improve profitability across all segments[62] - The company is committed to ESG initiatives, aiming to improve governance and sustainability practices while enhancing community engagement[63] - The company plans to continue expanding its market presence and product offerings, particularly in the new tobacco product segment[62] - The company plans to enhance its profitability and shareholder value by focusing on sustainable development and strategic acquisitions[70] - The company aims to strengthen its core competitiveness in the CBT market by improving quality control and enhancing brand image[71] Corporate Governance and Compliance - The company has not applied any new accounting standards or interpretations that have not yet come into effect during the current accounting period[13] - The company’s auditor provided an unqualified opinion on the consolidated financial statements for the years ended December 31, 2024, and 2023[12] - The audit committee, consisting of three independent non-executive directors, reviewed the annual performance and confirmed it was prepared in accordance with applicable accounting standards[103] - The company aims to maintain high corporate governance standards and has complied with all applicable code provisions during the year ending December 31, 2024[99] Employee Development - The company has implemented a comprehensive training system to enhance employee skills and business capabilities, covering various aspects including compliance and industry trends[90] - The company has established a nine-year employee development plan to provide personalized career path planning and mentoring[90] Miscellaneous - The company has not issued any equity securities or debt instruments during the year ending December 31, 2024[94] - The company has not purchased, sold, or redeemed any of its listed securities during the year ending December 31, 2024[102] - No significant events requiring disclosure occurred after December 31, 2024[105] - The annual report for the year ending December 31, 2024, will be sent to shareholders and is available on the Hong Kong Stock Exchange and the company's website[107]