Core Viewpoint - The company reported a strong performance in the first half of 2025, with significant revenue growth driven by the tobacco leaf import and export business, despite challenges in certain segments [1][2][3][4]. Financial Performance - In H1 2025, the company achieved revenue of HKD 10.316 billion, a year-on-year increase of 18.5% [1]. - The net profit attributable to equity holders was HKD 706 million, reflecting a 9.8% increase compared to the previous year [1]. - A mid-term dividend of HKD 0.19 per share was declared, up 26.7% year-on-year [1]. Business Segment Analysis - **Tobacco Leaf Export Business**: Revenue reached HKD 1.156 billion, up 25.9% year-on-year, with a gross margin of 5.5%, an increase of 2.4 percentage points [1]. - **Tobacco Leaf Import Business**: Revenue was HKD 8.399 billion, a 23.5% increase year-on-year, with a gross margin of 8.2%, down 2.8 percentage points [1]. - **Cigarette Export Business**: Revenue was HKD 552 million, a slight increase of 0.8% year-on-year, with a gross margin of 25.7%, up 3.5 percentage points [2]. - **New Tobacco Products Export Business**: Revenue fell to HKD 15 million, a decline of 66.5% year-on-year, with a gross margin of 5.3% [2]. - **Brazil Operations**: Revenue dropped to HKD 195 million, down 50.3% year-on-year, but gross margin improved to 27.4%, up 10.2 percentage points [3]. Strategic Advantages - The company holds exclusive rights for international tobacco business operations as designated by China National Tobacco Corporation, providing a rare competitive advantage [4]. - The business model demonstrates strong cash flow and pricing power, supported by the backing of China National Tobacco Group [4]. - Future growth opportunities may arise from potential acquisitions of overseas tobacco brands and channels [4]. Profit Forecast and Valuation - Revenue projections for 2025, 2026, and 2027 are estimated at HKD 15.35 billion, HKD 17.75 billion, and HKD 20.35 billion, respectively [4]. - Net profit forecasts for the same years are HKD 950 million, HKD 1.07 billion, and HKD 1.25 billion, respectively [4].