Investment Rating - The investment rating for the company is "Outperform the Market" [1] Core Views - The company operates under exclusive licenses and is positioned as a resource integrator under a franchise framework, with a focus on global expansion [2][6] - The company is the only publicly listed tobacco company within the China Tobacco system, benefiting from strong exclusive operating barriers and actively pursuing both organic and external growth [4][8] Summary by Relevant Sections Business Overview - The company is designated as the overseas platform for China Tobacco International, responsible for capital market operations and international business expansion [4][8] - The business model is characterized by light assets, monopoly, and planned operations, leading to stable profitability [4][8] Revenue and Growth - Revenue from 2018 to 2024 is projected to grow from HKD 70.3 billion to HKD 130.7 billion, with a compound annual growth rate (CAGR) of 10.9% [19] - The company’s revenue is primarily driven by the import and export of tobacco leaves, with significant contributions from cigarette exports and new tobacco products [19][22] Profitability - Net profit is expected to increase from HKD 2.6 billion in 2018 to HKD 8.5 billion in 2024, with a CAGR of 21.8% [22] - The company’s profitability is enhanced by a high-margin business structure, particularly in the Brazilian operations and cigarette exports [22] Market Position - The company holds a unique position in the global tobacco market, with over 40% of the world's tobacco production and consumption occurring in China, yet the internationalization of China Tobacco remains relatively low, indicating significant growth potential [4][8] Future Outlook - The company anticipates net profits of HKD 9.0 billion, HKD 9.8 billion, and HKD 10.6 billion for the years 2025 to 2027, respectively, with corresponding earnings per share (EPS) of HKD 1.30, HKD 1.41, and HKD 1.53 [4][22] - The expected reasonable valuation range for the company is between HKD 29.83 and HKD 36.24, corresponding to a market capitalization of HKD 206 billion to HKD 251 billion [4]