Core Viewpoint - The company reported strong revenue growth and stable profits for the first half of 2025, driven by the import and export of tobacco leaf products, as well as cigarette exports, while increasing shareholder returns through dividends [1][2][4]. Revenue Summary - The company achieved a revenue of HKD 10.32 billion, representing an 18.5% increase year-on-year [1]. - Tobacco leaf imports generated revenue of HKD 8.40 billion, up 23.5%, with an import volume of 97,900 tons, a 2.5% increase, and an average import price of HKD 8.58 million per ton, up 20.5% [1]. - Tobacco leaf exports saw revenue of HKD 1.16 billion, a 25.9% increase, with an export volume of 38,500 tons, up 12.7%, and an average export price of HKD 30,000 per ton, up 11.7% [2]. - Cigarette exports generated revenue of HKD 550 million, a slight increase of 0.8%, with an export volume of 1.019 billion sticks, down 7.9%, and an average export price of HKD 0.54 per stick, up 9.4% [2]. Profitability Summary - The net profit for the first half of 2025 was HKD 706 million, reflecting a 9.8% increase, with a gross margin of 9.2%, down 1.9 percentage points [1]. - The gross margin for tobacco leaf imports was 8.2%, down 2.8 percentage points, primarily due to increased costs from CBT-sourced tobacco exceeding sales price increases [1]. - The gross margin for tobacco leaf exports improved to 5.5%, up 2.4 percentage points, due to enhanced pricing strategies and market expansion efforts [2]. - The gross margin for cigarette exports increased to 25.7%, up 3.5 percentage points, despite a decline in export volume [2]. Dividend and Future Outlook - The company proposed an interim dividend of HKD 0.19 per share, representing a 27% increase [1]. - The profit forecast for 2025-2027 has been raised, with expected net profits of HKD 940 million, HKD 1.04 billion, and HKD 1.18 billion, reflecting year-on-year growth of 9.6%, 11.4%, and 12.9% respectively [4]. - The diluted EPS is projected to be HKD 1.35, HKD 1.51, and HKD 1.70 for the years 2025, 2026, and 2027, with corresponding PE ratios of 27, 25, and 22 [4].
中烟香港(06055.HK)：烟叶类基本盘业务稳健 上半年收入增长19%