Core Viewpoint - CICC has raised the profit forecast for China Tobacco Hong Kong (06055) for the fiscal year 2025/26 by 5% and 8% to HKD 9.8 billion and HKD 10.9 billion respectively, reflecting the growth momentum in the tobacco leaf import and export business [1] Group 1: Financial Performance - In the first half of 2025, the company's revenue increased by 18.5% to HKD 10.32 billion, and net profit attributable to shareholders rose by 9.8% to HKD 710 million, both exceeding CICC's expectations due to favorable tobacco leaf import shipping schedules and optimized export product structure [2] - The revenue from tobacco leaf imports grew by 23.5%, with import volume and average price increasing by 2.5% and 20.5% respectively, leading to a higher proportion of high-priced tobacco leaves [3] - Tobacco leaf exports saw a revenue increase of 25.9%, with export volume and average price rising by 12.7% and 11.7% respectively, driven by the expansion of new customers and product structure optimization [3] Group 2: Margin Analysis - The company's gross margin for the first half of 2025 was 9.2%, a decrease of 1.9 percentage points, with improved gross margins in tobacco leaf exports and self-operated cigarette exports due to pricing strategy optimization [3] - The gross margin for tobacco leaf exports increased by 2.4 percentage points, while the gross margin for self-operated cigarette exports rose by 3.5 percentage points [3] - However, the gross margin for tobacco leaf imports decreased by 2.8 percentage points due to rising costs from unfavorable climate conditions [3] Group 3: Growth Drivers - The company is expected to strengthen its international allocation capabilities in tobacco leaf imports, leading to stable operational growth [4] - The expansion of duty-free channel development and the introduction of self-operated product lines in cigarette exports, along with a global exclusive distribution agreement for Long Wall cigars with Sichuan Tobacco, are anticipated to open up growth opportunities [4] - The company aims to actively seek potential high-quality targets that align with the group's strategic goals to enhance global competitiveness through external mergers and acquisitions [4]

Core Viewpoint - CICC has raised the profit forecast for China Tobacco Hong Kong (06055) for 2025/26 by 5%/8% to HKD 9.8/10.9 billion, reflecting the growth momentum in the tobacco leaf import and export business [1] Group 1: Financial Performance - In 1H25, the company's revenue increased by 18.5% to HKD 10.32 billion, and net profit attributable to shareholders rose by 9.8% to HKD 710 million, both exceeding CICC's expectations due to favorable tobacco leaf import shipment schedules and optimized export product structure [2] - The gross profit margin for 1H25 was 9.2%, a decrease of 1.9 percentage points, with improvements in gross margins for tobacco leaf exports and cigarette exports, while the gross margin for tobacco leaf imports declined due to adverse climate impacts [3] Group 2: Business Segments - Tobacco leaf imports saw a revenue increase of 23.5%, with import volume and average price rising by 2.5% and 20.5%, respectively [3] - Tobacco leaf exports experienced a revenue growth of 25.9%, with export volume and average price increasing by 12.7% and 11.7%, respectively, driven by new customer acquisition and product structure optimization [3] - Cigarette exports had a modest revenue increase of 0.8%, but volume decreased by 7.9%, while average price rose by 9.4% [3] - New tobacco revenue declined by 66.4%, with both volume and average price dropping significantly due to supply chain and regulatory challenges [3] - Brazilian operations faced a revenue decline of 50.3%, with volume and average price also decreasing due to climate constraints and shipment timing [3] Group 3: Growth Potential - The company is expected to strengthen its international allocation capabilities in tobacco leaf imports, ensuring stable growth [4] - The company has signed an exclusive global distribution agreement for Great Wall cigars with Sichuan Tobacco, which is anticipated to open new growth avenues [4] - There is potential for external acquisitions that align with the group's strategic goals to enhance global competitiveness [4]

Core Viewpoint - China Tobacco Hong Kong (06055) has seen its stock price rise over 9%, reaching a new high of 40.8 HKD following the release of its interim results, indicating strong performance in its core business segments [1] Financial Performance - The company reported a revenue of 10.316 billion HKD, representing an increase of 18.52% year-on-year [1] - Shareholder profit attributable to the company was 706 million HKD, up by 9.79% compared to the previous year [1] - A mid-term dividend of 0.19 HKD per share has been proposed [1] Business Outlook - Huatai Securities noted that the strong revenue performance in the first half of the year is primarily due to the excellent performance of the company's tobacco leaf import and export business, achieving both volume and price increases [1] - The company is expected to maintain robust growth in its core tobacco leaf import and export business due to its strong market position and pricing power [1] - Emerging businesses such as cigarettes are anticipated to contribute to performance growth, and the company is positioned as the designated overseas platform for China National Tobacco Corporation's capital market operations and international business expansion [1] - The combination of organic growth and external expansion is expected to enhance the company's growth potential, leading to a "buy" rating from analysts [1]

Core Viewpoint - China Tobacco Hong Kong (06055) saw its stock price increase by over 9%, reaching a new high of 40.8 HKD following the release of its interim results, indicating strong performance in revenue and profit growth [1] Financial Performance - The company reported a revenue of 10.316 billion HKD for the interim period, representing an increase of 18.52% year-on-year [1] - Shareholder profit attributable to the company was 706 million HKD, reflecting a year-on-year increase of 9.79% [1] - A mid-term dividend of 0.19 HKD per share has been proposed [1] Business Outlook - Huatai Securities noted that the strong revenue performance in the first half of the year was primarily driven by the excellent performance of the company's tobacco leaf import and export business, achieving both volume and price increases [1] - The company is expected to maintain robust growth in its core tobacco leaf import and export business due to its strong market position and pricing power [1] - Emerging businesses such as cigarettes are anticipated to contribute to performance growth, and the company is positioned as the designated overseas platform for China National Tobacco Corporation's capital market operations and international business expansion [1] - The combination of organic growth and external expansion is expected to enhance the company's growth potential, leading to a "buy" rating from analysts [1]

Stock Market Performance - The Hang Seng Index rose 234 points or 0.9% to close at 25,339 points, the China Enterprises Index rose 105 points or 1.2% to close at 9,079 points, and the Hang Seng Tech Index rose 149 points or 2.7% to close at 5,647 points. The total turnover of the market was HK$285.584 billion [1]. - The Shanghai Composite Index rose 54 points or 1.45% to close at 3,825 points, the Shenzhen Component Index rose 246 points or 2.07% to close at 12,166 points, and the ChiNext Index rose 87 points or 3.36% to close at 2,682 points. The total turnover of the Shanghai and Shenzhen stock markets increased to approximately RMB2.55 trillion, setting a record for the A-share market [2]. - The Dow Jones Industrial Average and the Nasdaq Composite both rose 1.9%, the Dow Jones Industrial Average reached a new high, closing 846 points higher at 45,631 points, the Nasdaq Composite rose 396 points to 21,496 points, and the S&P 500 Index closed 96 points or 1.5% higher at 6,466 points, approaching last week's high [2]. Monetary Policy - The People's Bank of China conducted a seven-day reverse repurchase operation of RMB253 billion in the open market on the 21st, with an operating interest rate remaining flat at 1.4%. There were RMB128.7 billion of reverse repurchases due, resulting in a net injection of RMB124.3 billion [2]. - The central parity rate of the RMB against the US dollar was raised by 97 points to 7.1287 [2]. Trade Policy - Canada announced on Friday the cancellation of several countervailing tariffs against the US but maintained a 25% tariff on US automobiles, steel, and aluminum. The policy adjustment will take effect on September 1st [3]. Company Announcements IPO - Aux Group (02580.HK) plans to globally issue 207.16 million shares, with 5% (approximately 10.3582 million shares) for the Hong Kong public offering and 95% (approximately 196.8 million shares) for the international placement. The offering price ranges from HK$16 to HK$17.42 per share, with a maximum fundraising of approximately HK$3.61 billion. The subscription period is from the 25th to noon on the 28th, and it is expected to be listed on September 2nd [4]. Interim Results - Sinopharm Group (01099.HK) reported a turnover of RMB286.043 billion for the six months ended June 30th, a year-on-year decrease of 2.9%. The net profit was RMB3.466 billion, a year-on-year decrease of 6.4%, and the earnings per share were RMB1.11. No dividend was declared [4]. - Zhaojin Mining Industry (01818.HK) reported an income of RMB6.972 billion for the six months ended June 30th, a year-on-year increase of 50.7%. The gross profit was RMB3.05 billion, an increase of 54.3%. The net profit was RMB1.44 billion, a growth of 160.4%, and the earnings per share were RMB0.38. No dividend was declared [4]. - Greentown China (03900.HK) reported an income of RMB53.368 billion for the six months ended June 30th, a year-on-year decrease of 23.3%, due to a 22.7% decrease in the transfer area during the period. The gross profit was RMB7.159 billion, a decrease of 21.4%. The net profit was RMB210 million, a decline of 89.7%, mainly affected by an impairment loss of RMB1.933 billion on related assets. The earnings per share were RMB0.08. No dividend was declared [5]. - Chow Tai Fook Jewellery Group (06168.HK) reported an income of RMB3.15 billion for the six months ended June 30th, a year-on-year increase of 5.2%. The gross profit was RMB827 million, an increase of 8.7%, mainly due to the contribution of the self - operated business model. The net profit was RMB415 million, a growth of 11.9%, and the earnings per share were RMB1.09. An interim dividend of HK$0.45 was declared [5]. - Nine Masts Catering Group (09922.HK) reported an income of RMB2.753 billion for the six months ended June 30th, a year-on-year decrease of 10.1%. The net profit was RMB60.69 million, a decline of 16%, and the earnings per share were RMB0.04. No dividend was declared [5]. - CMOC Group (03993.HK) reported an operating income of RMB94.773 billion for the six months ended June 30th, a year-on-year decrease of 7.8%. The operating cost was RMB74.727 billion, a decrease of 11%. The net profit attributable to shareholders was RMB8.671 billion, a growth of 60.1%, setting a new high for the same period. The earnings per share were RMB0.41. No dividend was declared [5]. - CRRC Corporation Limited (01766.HK) reported an operating income of RMB119.758 billion for the six months ended June 30th, a year-on-year increase of 33%, mainly due to the growth of railway equipment and new industry revenues. The net profit was RMB7.246 billion, a growth of 72.5%, and the earnings per share were RMB0.25. An interim dividend of RMB0.11 was declared [6]. - Dongfang Selection (01797.HK) reported a total revenue of RMB4.392 billion for the fiscal year ended May 31st, a year-on-year decrease of 37.9%. The net profit was RMB5.74 million, a decline of 99.7%, and the earnings per share were RMB0.01. No dividend was declared. The net profit from continuing operations was RMB6.2 million, compared with RMB249 million in 2024. Excluding the financial impact of the sale of Yuhui Tongxing, the net profit from continuing operations was RMB135 million, a growth of 30%. The total operating cost of continuing operations decreased by 38.2% to RMB3 billion, mainly due to the decrease in the inventory cost and logistics cost of self - operated products caused by the decrease in GMV. The gross profit from continuing operations decreased by 17% to RMB1.4 billion, and the gross profit margin increased from 25.9% to 32% [7]. - China National Tobacco Hong Kong (06055.HK) reported an income of RMB10.316 billion for the six months ended June 30th, a year-on-year increase of 18.5%. The gross profit was RMB946 million, a decrease of 1.8%. The net profit was RMB706 million, a growth of 9.8%, and the earnings per share were RMB1.02. An interim dividend of HK$0.19 was declared, compared with HK$0.15 in the same period last year [7].

华泰证券报告指出，中烟香港上半年收入同比增长18.5%；归母净利润同比增长9.8%。该行认为业绩增 长得益于烟叶进出口业务的量价齐升。展望未来，华泰证券看好公司凭借独家经营地位和较强议价能 力，在烟叶进出口主业上继续稳健成长，新兴业务亦有望贡献增量，同时作为境外平台的外延拓展空间 可期。因此，该行维持"买入"评级，并将目标价上调至41.4港元。 ...

Core Viewpoint - 中烟香港's stock price dropped over 7% following the release of its interim results, despite reporting an increase in revenue and profit [1] Financial Performance - 中烟香港 reported a revenue of 10.316 billion HKD, an increase of 18.52% year-on-year [1] - The profit attributable to shareholders was 706 million HKD, reflecting a year-on-year increase of 9.79% [1] - The company proposed an interim dividend of 0.19 HKD per share [1] Business Segments - The increase in revenue was driven by a significant rise in the unit price of tobacco leaf imports and cigarette exports, although new tobacco export volumes and revenues declined due to regulatory changes and supply chain disruptions in key overseas markets [1] - The gross profit margin and net profit margin for the first half were 9.17% and 7.00%, respectively, showing a decline of 1.91 and 0.81 percentage points year-on-year [1] Cost Structure - The decline in overall gross margin was primarily due to changes in the business structure, with the revenue share of the lower-margin tobacco leaf import business increasing by 3.26 percentage points to 81.41% [1] - The cost of tobacco leaves procured from CBT increased at a rate greater than the rise in unit prices, leading to a decrease in the gross margin for tobacco leaf imports [1] Strategic Initiatives - The company is expanding its self-operated channels in cigarette exports and continuously introducing new products to enhance average transaction value, which has contributed to a faster increase in gross margin [1] - There remains a strong certainty regarding the improvement of profitability in the company's core business, with expectations for further external growth opportunities [1]

Core Viewpoint - The company reported a solid revenue growth in H1 2025, driven by significant increases in the unit price of tobacco leaf imports and exports, despite challenges in the new tobacco products segment [1][2]. Revenue Analysis - H1 2025 revenue reached 1.0316 billion HKD, a year-on-year increase of 18.52%, while net profit attributable to shareholders was 706 million HKD, up 9.79% [1]. - Tobacco leaf import revenue grew by 23.47% to 839.9 million HKD, with sales volume and unit price increasing by 2.5% and 20.50% respectively [1]. - Tobacco leaf export revenue rose by 25.92% to 115.6 million HKD, with sales volume and unit price increasing by 12.7% and 11.66% respectively [1]. - Cigarette export revenue slightly increased by 0.81% to 55.2 million HKD, despite a decline in sales volume by 7.9% [1]. - New tobacco products export revenue plummeted by 66.45% to 1.5 million HKD, with both sales volume and unit price declining significantly [1]. Profitability Analysis - The company's gross margin and net margin for H1 2025 were 9.17% and 7.00%, down by 1.91 and 0.81 percentage points year-on-year [3]. - The gross margins for tobacco leaf import, export, cigarette export, new tobacco products export, and Brazilian operations were 8.18%, 5.46%, 25.70%, 5.48%, and 27.44% respectively, with varying changes year-on-year [3]. - The decline in overall gross margin was attributed to changes in business structure, with the revenue share of lower-margin tobacco leaf imports increasing [3]. Strategic Outlook - The company is expected to continue enhancing its internal business profitability through product mix optimization and increasing self-operated business share, which is anticipated to drive gross margin improvements [4]. - A recent exclusive distribution agreement with Sichuan Zhongyan for "Great Wall" brand cigars indicates the company's commitment to leveraging unique market opportunities [4]. - The company aims for both organic growth and external expansion, focusing on supply chain management and resource allocation to mitigate industry supply-demand fluctuations [4]. Earnings Forecast - The company projects EPS for 2025, 2026, and 2027 to be 1.37, 1.53, and 1.75 HKD respectively, with corresponding PE ratios of 26, 23, and 20 times [4].

Core Viewpoint - The company reported a steady growth in performance for the first half of 2025, with revenue increasing by 18.5% year-on-year and net profit rising by 9.8%, despite fluctuations in profitability due to delivery schedules affecting high-margin businesses [1][2]. Financial Performance - The company achieved a revenue of HKD 10.316 billion for 25H1, with a net profit of HKD 706 million, a gross margin of 9.2%, and a net margin of 6.8% [2]. - The proposed interim dividend is HKD 0.19 per share, with a dividend payout ratio of approximately 19%, an increase from HKD 0.15 per share and a 16% payout ratio in the same period of 2024 [2]. Business Segments - **Tobacco Leaf Imports**: Revenue of HKD 8.399 billion, up 23.5% year-on-year, with a gross margin of 8.18% [2]. - **Tobacco Leaf Exports**: Revenue of HKD 1.156 billion, up 25.9% year-on-year, with a gross margin of 5.46% [2]. - **Cigarette Exports**: Revenue of HKD 552 million, up 0.8% year-on-year, with a gross margin of 25.70% [2]. - **New Tobacco Exports**: Revenue of HKD 15 million, down 66.5% year-on-year, with a gross margin of 5.34% [2]. - **Brazilian Operations**: Revenue of HKD 195 million, down 50.3% year-on-year, with a gross margin of 27.43% [2]. Strategic Outlook - The company is positioned to maintain a stable growth trajectory, supported by strong supply chain management and its unique status as the only enterprise with state-run tobacco import and export qualifications [3].

Group 1 - The core viewpoint of the report is that China Tobacco Hong Kong achieved a revenue of 10.32 billion yuan in the first half of the year, representing an 18.5% year-on-year increase, and a net profit attributable to shareholders of 710 million yuan, up 9.8% year-on-year, with a net profit margin of 6.8% [1] - The revenue growth is primarily attributed to the strong performance of the company's tobacco leaf import and export business, which saw both volume and price increases in the first half of the year [1] - The company is expected to maintain robust growth in its core tobacco leaf import and export business due to its strong market position and pricing power, while emerging businesses such as cigarettes are anticipated to contribute to performance growth [1] Group 2 - As the designated overseas platform for China Tobacco International's capital market operations and international business expansion, the company has significant potential for further expansion [1] - The report maintains a positive outlook on the company's growth potential, upgrading the target price from 39.9 HKD to 41.4 HKD, which corresponds to a projected price-to-earnings ratio of 30 times for the current year [1]