Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights the release of the draft management measures for domestic duty-free tobacco products, indicating a regulatory shift aimed at improving market order and protecting tax revenues [8] - The company is positioned as the only listed entity under China Tobacco International, focusing on the import and export of tobacco products, with a significant portion of revenue expected from the domestic duty-free market [8] - The report anticipates a steady growth in revenue and profit, with adjusted net profit forecasts for 2025-2027 being HKD 870.39 million, HKD 1,011.77 million, and HKD 1,125.43 million respectively [1][8] Financial Projections - Total revenue projections (in million HKD) are as follows: 2023A: 11,836, 2024A: 13,074, 2025E: 13,432, 2026E: 14,656, 2027E: 15,718, with year-on-year growth rates of 42.19%, 10.46%, 2.74%, 9.11%, and 7.25% respectively [1] - The diluted EPS forecasts are: 2023A: 0.87, 2024A: 1.23, 2025E: 1.26, 2026E: 1.46, 2027E: 1.63, with corresponding P/E ratios of 37.72, 26.45, 25.95, 22.32, and 20.07 [1] - The company’s gross profit margin is projected to improve gradually, reaching 11.00% by 2027 [9] Market Context - The report discusses the regulatory environment affecting the duty-free tobacco market, emphasizing the need for compliance with new management measures to enhance operational integrity [8] - The company is expected to benefit from the consolidation of resources within the international tobacco supply chain, which may lead to increased market share and profitability [8]