Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [6]. Core Views - The report highlights a positive earnings forecast for the first half of 2024, with expected revenue growth of no less than 10% year-on-year and a profit attributable to owners growth of no less than 30% [3][4]. - The company is backed by China Tobacco Group and achieved a revenue of HKD 11.8 billion in 2023, marking a 42% year-on-year increase, with a net profit of HKD 599 million, up 60% year-on-year [4][5]. Summary by Sections Company Overview - China Tobacco Hong Kong (06055) serves as the designated overseas platform for capital operations and international business expansion for China National Tobacco Corporation [4]. - The company primarily engages in the import and export of tobacco products, including leaf tobacco and cigarettes, as well as new tobacco products like e-cigarettes [4]. Financial Performance - The company reported a significant increase in both revenue and profit in 2023, with revenue surpassing HKD 11 billion for the first time [4]. - The expected financial performance for 2024-2026 includes projected revenues of HKD 135 billion, HKD 151 billion, and HKD 166 billion, representing year-on-year growth rates of 14%, 12%, and 10% respectively [5][7]. Growth Drivers - The growth in revenue and profit is attributed to the recovery of consumer traffic in duty-free shops post-pandemic, optimization of cigarette product mix, and increased self-operated business share [4]. - The report notes that both import and export businesses for leaf tobacco products are expected to see growth due to seasonal fluctuations and improved pricing strategies [4][5]. Market Performance - As of June 5, 2024, the company's stock price was HKD 16.60, with a market capitalization of approximately HKD 11.48 billion [4]. - The company's performance significantly outpaced the Hang Seng Index over various time frames, with a 1-month increase of 38.4%, a 3-month increase of 79.7%, and a 12-month increase of 83.4% [4].
中烟香港：事件点评报告：2024H1业绩盈喜，看好公司出口业务发展