Investment Rating - The report maintains a "Buy" rating for China Tobacco Hong Kong (06055.HK) [1] Core Views - China Tobacco Hong Kong is the only publicly listed company in the Chinese tobacco system, focusing on both organic growth and external expansion strategies. The company is expected to benefit from the integration of overseas assets and has a strong growth outlook [10][9]. Summary by Sections Company Overview - China Tobacco Hong Kong was established in 2004 and is the only listed company in the Chinese tobacco system, covering five major business segments: tobacco leaf import and export, cigarette export, new tobacco products, and operations in Brazil. The company reported a revenue of HKD 13.07 billion in 2024, a year-on-year increase of 10.5%, and a net profit of HKD 854 million, up 42.6% year-on-year [9][17]. Business Model - The company operates five main businesses: 1. Tobacco Leaf Import: Revenue of HKD 82.5 billion in 2024, accounting for 63% of total revenue. 2. Tobacco Leaf Export: Revenue of HKD 20.6 billion, a year-on-year increase of 24.8%. 3. Cigarette Export: Revenue of HKD 15.7 billion, up 30.2% year-on-year. 4. New Tobacco Products: Revenue of HKD 1.4 billion, a 4% increase. 5. Brazilian Operations: Revenue of HKD 10.5 billion, a 37% increase [9][22]. Financial Performance - The company forecasts revenue growth of 10% for 2025, reaching HKD 14.39 billion, and net profit growth of 15%, reaching HKD 978 million. The diluted earnings per share are expected to be HKD 1.41 in 2025 [7][10]. Market Position - China Tobacco Hong Kong has a unique position as the only licensed tobacco company in the Chinese system, which enhances its scarcity and growth potential. The company is well-positioned to leverage its exclusive rights to import and export tobacco products [9][23]. Strategic Insights - The report highlights the potential for mergers and acquisitions as a means for China Tobacco Hong Kong to expand its market presence and product offerings, similar to strategies employed by international tobacco giants [10][9].
中烟香港（06055）：公司深度报告：“内生”铸就业务基石，“外延”拓展成长空间