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]

[Table_StockNameRptType] 中烟香港（06055） 港股公司覆盖 承载中烟全球化使命，前路星辰大海 [Table_Rank] 投资评级：买入 | 首次覆盖 | | --- | 主要观点： ⚫[Table_Summary] 概况：重组天利国际业务版图，打造境外战略桥头堡 中烟香港是中烟国际负责资本市场运作和国际业务拓展的指定境外平 台。公司成立于 2004 年，于 2018 年进行重组，于 2019 年于港交所 上市，是中国烟草总公司旗下第一个登陆资本市场的子公司。公司核 心业务包括烟叶类产品进口业务、烟叶类产品出口业务、卷烟出口业 务、新型烟草制品出口业务和巴西经营业务。根据公司官网数据，目 前，中烟香港经营业务领域涵盖新型烟草、卷烟、烟叶及雪茄等品 类，市场区域覆盖东亚、东南亚、南北美、中东欧等 50 余个国家和地 区，经营新型烟草品牌超过 20 个，卷烟品牌超过 35 个，雪茄品规超 过 35 个。公司业绩持续稳定增长，2016-2023 年，公司营业收入由 63.10 亿港元增长至 118.36 亿港元，CAGR 为 9.40%；归母净利润由 3.35 亿港元增长至 5.99 亿港 ...

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 32.20, based on a projected PE of 23X for 2025 [4]. Core Viewpoints - The company is positioned as a capital operation platform for China National Tobacco Corporation, supporting its international development. The revenue and net profit for 2023 reached HKD 11.84 billion and HKD 600 million, respectively, with a CAGR of 7.2% and 17.0% from 2019 to 2023 [1][15]. - The company benefits from exclusive operating rights in tobacco import and export, which provides a stable performance foundation. The core business of tobacco leaf import and export is expected to see growth in both volume and price [1][25]. - The company has shown significant growth in its cigarette export business, with a revenue increase of 875.8% in 2023, driven by the recovery of inbound and outbound passenger flow [2][74]. Summary by Sections Company Overview - The company is controlled by China National Tobacco Corporation and has a stable performance foundation due to its exclusive operating rights. It has diversified operations including tobacco leaf import and export, cigarette export, and new tobacco products [15][18]. - The company has shown a recovery in performance post-public health events, with 2024H1 revenue and net profit increasing by 12.4% and 40.8%, respectively [15][1]. Tobacco Leaf Import and Export - The tobacco leaf import business is the main revenue driver, accounting for 78.2% of total revenue in 2024H1, with a year-on-year growth of 5.5% [1][25]. - The export business is also showing promise, with a 23% increase in revenue in 2024H1, supported by a stable supply and expanding demand in Europe [1][25]. Cigarette Export Business - The cigarette export business has experienced a remarkable recovery, with revenues increasing significantly due to the restoration of passenger flow and market expansion [2][74]. - The company is optimizing its product mix and increasing the proportion of direct sales, which is expected to enhance profitability [2][74]. New Tobacco Products - The new tobacco product segment, particularly heated not-burn (HNB) products, is in a growth phase, with a CAGR of 48% from 2019 to 2023 [3][15]. - The company is expected to increase its market share through product enhancements and regional expansion [3][15]. Financial Projections - The company’s EPS is projected to be HKD 1.15, 1.40, and 1.66 for 2024, 2025, and 2026, respectively, with a current PE ratio of 18X, 15X, and 12X for the same years [4][6].

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The report highlights that China Tobacco Hong Kong is the only publicly listed company within the China Tobacco system, with significant potential for resource integration and market expansion [6][29]. - The company is expected to see steady growth in its core business of tobacco leaf imports and exports, with additional upside from cigarette and new tobacco product exports [6][58]. - The financial forecasts predict a substantial increase in net profit from HKD 598.77 million in 2023 to HKD 1,017.50 million by 2026, reflecting a compound annual growth rate (CAGR) of approximately 34.68% [1][6]. Summary by Sections 1. Overview of the Chinese Tobacco Industry - China is the largest producer and consumer of tobacco, with a 36% share of global tobacco leaf production and 45% of global cigarette sales [6][16]. - The industry operates under a unified leadership and exclusive management system, ensuring stable governance and significant contributions to national revenue [19][20]. 2. China Tobacco Hong Kong - The company serves as the sole listed platform for China Tobacco's international trade, with a management team that has extensive experience in the tobacco industry [29][32]. - In 2023, the revenue breakdown shows that tobacco leaf imports account for 68%, exports for 14%, and cigarette exports for 10% of total revenue [34][37]. - The company has a significant margin from its tobacco leaf import/export business, contributing over 71% of its gross profit [37][39]. 3. Financial Forecast and Investment Recommendations - The report forecasts revenue growth from HKD 11.84 billion in 2023 to HKD 15.32 billion by 2026, with corresponding net profits expected to rise significantly [1][6]. - The projected price-to-earnings (P/E) ratios for 2024-2026 are 19, 17, and 15 respectively, indicating a favorable valuation for investors [1][6].

Industry and Company Overview * **Industry**: Tobacco and related products * **Company**: Central Hong Kong, a subsidiary of China Tobacco International * **Role**: Capital operation platform and international business expansion for China Tobacco Key Points Business Segments 1. **Tobacco Imports**: * High margin Brazilian tobacco imports contribute to increased gross margins. * Brazil's impact on gross margins due to cost and price increases. * Tobacco imports are planned and dependent on annual quotas. * Gross margins for tobacco imports increased by 6% due to cost plus pricing model. * [10][11][12][13] 2. **Tobacco Exports**: * Exports to Hong Kong, Macau, Taiwan, and Southeast Asia. * Sales volume and margins increased due to higher prices and improved product mix. * Sales volume and margins are expected to grow in the next few years. * [14][15][16][17][18][19][20][21][22][23][24][25][26][27][28][29][30][31][32][33][34][35][36][37][38][39][40][41][42][43] 3. **New Tobacco Products**: * Sales in four core regions: Russia, Eastern Europe, the Middle East, and North Africa. * Focus on deepening market penetration and improving profitability. * Gross margins increased from 2.3% to 4.4% in the first half of 2024. * [39][40][41][42][43] 4. **H&B Products**: * Strategic focus for China Tobacco. * Price optimization, cost reduction, and product innovation. * Expansion into new markets based on market maturity. * [41][42][43] Financial Performance 1. **2024 Mid-Year Results**: * Revenue, gross margins, and scale all recorded normal growth. * Profitability continued to strengthen. * [5][6][7][8][9][10][11][12][13][14][15][16][17][18][19][20][21][22][23][24][25][26][27][28][29][30][31][32][33][34][35][36][37][38][39][40][41][42][43] 2. **Associated Party Transactions**: * Renewal of agreements with six overseas associated parties. * Approval of new three-year associated transaction amount limits. * [6][7][8][9][10][11][12][13][14][15][16][17][18][19][20][21][22][23][24][25][26][27][28][29][30][31][32][33][34][35][36][37][38][39][40][41][42][43] Future Outlook 1. **Tobacco Imports**: * Gross margins expected to remain stable. * Focus on maintaining cost competitiveness and optimizing product mix. * [10][11][12][13][14][15][16][17][18][19][20][21][22][23][24][25][26][27][28][29][30][31][32][33][34][35][36][37][38][39][40][41][42][43] 2. **Tobacco Exports**: * Continued growth in sales volume and margins. * Expansion into new markets and product categories. * [14][15][16][17][18][19][20][21][22][23][24][25][26][27][28][29][30][31][32][33][34][35][36][37][38][39][40][41][42][43] 3. **New Tobacco Products**: * Deepening market penetration in core regions. * Continuous improvement in profitability. * [39][40][41][42][43] 4. **H&B Products**: * Strategic focus for China Tobacco. * Continuous innovation and expansion into new markets. * [41][42][43]

Investment Rating - The investment rating for China Tobacco Hong Kong (06055) is "Buy" with a target price of HKD 25.8, maintained for the next six months [1]. Core Views - The company is expected to see a significant profit increase in 2024, with an anticipated growth of no less than 30% in net profit attributable to owners compared to the previous year [1]. - The report highlights the continuous improvement in overall profitability across five major business segments, with all segments showing growth in gross profit [1]. - The company benefits from its unique position as the exclusive operator for international business expansion and related trade for China National Tobacco Corporation, which is expected to provide ongoing advantages in overseas expansion and potential mergers and acquisitions [1]. Summary by Sections Business Performance - The import business of tobacco leaves has seen growth due to an increase in the proportion of high-margin Brazilian tobacco leaves and rising sales prices [1]. - The export business of tobacco leaves has significantly improved gross margins due to effective sourcing and pricing strategies [1]. - The export business of cigarettes has also experienced a substantial increase in gross profit levels due to structural optimization and a higher proportion of self-operated business [1]. - The export business of new tobacco products has shown growth in gross profit as the company continues to optimize its operational model [1]. - The Brazilian operations have benefited from a higher sales price of finished tobacco products, leading to a significant increase in gross profit [1]. Strategic Advantages - The company possesses a rare advantage with its exclusive rights to international tobacco business operations, which is expected to continue benefiting from the parent company's overseas expansion efforts [1]. - The business model demonstrates strong cash flow and pricing power, supported by stable revenue growth and a robust risk resistance capability [1]. - Future opportunities for industry chain integration are anticipated, enhancing the company's competitive edge [1]. Profit Forecast and Valuation - The company is projected to achieve net profits of HKD 7.87 billion, HKD 9.10 billion, and HKD 11.00 billion for the years 2024, 2025, and 2026 respectively [1]. - The report maintains a "Buy" rating, emphasizing the company's unique position as the only international business platform under China National Tobacco Corporation, which is expected to benefit from industry development and transformation [1].