China Tobacco International (HK) Co (6055) AI Stock Analysis

• Market Cap: HK$27.96B
• Dividend Yield: 1.27%
• Average Volume (3M): 1.98M
• Price to Earnings (P/E): 30.5
• Beta (1Y): 0.82
• Revenue Growth: 14.77%
• EPS Growth: 16.77%
• Country: HK
• Employees: 307
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Tobacco
• EPS (TTM): 1.02
• Shares Outstanding: 691,680,000
• 10 Day Avg. Volume: 1,714,404
• 30 Day Avg. Volume: 1,976,132
• PEG Ratio: 0.47
• Price to Book (P/B): 5.47
• Price to Sales (P/S): 1.26
• P/FCF Ratio: 26.91
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$41.80
• Price Target Upside: 3.77% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• Price Target: HK$45.00 ▲(11.72% Upside)

The overall stock score is driven by strong technical momentum and solid financial performance, despite high valuation concerns. The absence of earnings call data and corporate events limits additional insights.

China Tobacco International (HK) Co Business Overview & Revenue Model

Company Description

China Tobacco International (HK) Co (6055) is a leading player in the global tobacco industry, specializing in the import and export of tobacco products. As a subsidiary of China National Tobacco Corporation, it operates primarily in the international markets, focusing on the distribution of a wide range of tobacco products, including cigarettes and other related goods. The company leverages its strong supply chain and extensive network to cater to diverse consumer needs, positioning itself as a significant contributor to the global tobacco trade.

How the Company Makes Money

China Tobacco International (HK) Co generates revenue primarily through the sale of its tobacco products in international markets. The company's revenue model is largely driven by the import and export of cigarettes, which are sold to various distributors and retailers worldwide. Key revenue streams include direct sales to foreign markets, partnerships with local distributors, and licensing agreements that allow other companies to produce and sell its brands. Additionally, the company benefits from economies of scale due to its affiliation with the China National Tobacco Corporation, which provides it with access to a vast tobacco supply and resources for efficient production and distribution. Market demand for tobacco products, pricing strategies, and regulatory factors in different regions also significantly influence the company's earnings.

China Tobacco International (HK) Co Financial Statement Overview

Summary

China Tobacco International (HK) Co demonstrates strong revenue and profit growth, with improved gross and net profit margins. However, operational efficiency and cash flow management need enhancement to address cash flow challenges.

Income Statement

The company has demonstrated strong revenue growth, with a 10.4% increase from 2023 to 2024. Gross profit margin improved to 10.54% in 2024, indicating better cost management. Net profit margin rose to 6.53%, showing enhanced profitability. However, EBIT and EBITDA margins were slightly lower at 10.25% and 9.66% respectively, suggesting room for operational efficiency improvement.

Balance Sheet

The company's debt-to-equity ratio increased from 1.00 in 2023 to 0.99 in 2024, indicating a stable leverage position. Return on equity (ROE) improved to 28.41%, reflecting effective use of equity. The equity ratio decreased to 30.61%, highlighting increased reliance on liabilities. Overall, the balance sheet is strong but could benefit from a higher equity ratio.

Cash Flow

The cash flow statement shows mixed results, with a significant drop in operating cash flow from 2023 to 2024. Free cash flow growth rate is unavailable due to zero free cash flow in 2024, raising concerns about cash generation capabilities. The company needs to enhance its cash flow management to support growth and operational needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.69B	13.07B	11.84B	8.32B	8.06B	3.48B
Gross Profit	1.36B	1.38B	1.09B	793.57M	400.56M	130.72M
EBITDA	1.24B	1.26B	1.08B	750.92M	738.91M	112.75M
Net Income	916.75M	853.74M	598.77M	374.90M	702.83M	106.12M
Balance Sheet
Total Assets	10.00B	9.82B	6.74B	6.37B	4.77B	3.80B
Cash, Cash Equivalents and Short-Term Investments	3.98B	2.86B	2.33B	1.79B	1.66B	1.63B
Total Debt	2.55B	2.98B	2.49B	2.11B	1.31B	25.53M
Total Liabilities	6.30B	6.63B	4.05B	4.13B	2.78B	2.06B
Stockholders Equity	3.50B	3.01B	2.49B	2.02B	1.76B	1.75B
Cash Flow
Free Cash Flow	2.00B	610.44M	501.77M	-390.07M	30.13M	31.94M
Operating Cash Flow	2.01B	629.44M	517.91M	-383.80M	30.97M	42.83M
Investing Cash Flow	-653.77M	-459.99M	-1.70B	11.21M	12.34M	65.72M
Financing Cash Flow	-753.82M	-164.01M	-27.05M	512.66M	-43.33M	-156.81M

China Tobacco International (HK) Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 40.28
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6055, the sentiment is Neutral. The current price of 40.28 is below the 20-day moving average (MA) of 42.92, below the 50-day MA of 41.72, and above the 200-day MA of 31.54, indicating a neutral trend. The MACD of -0.72 indicates Positive momentum. The RSI at 34.47 is Neutral, neither overbought nor oversold. The STOCH value of 8.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:6055.

China Tobacco International (HK) Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6055	76 Outperform	HK$27.96B	30.50	28.61%	1.27%	14.77%	16.77%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
6969	54 Neutral	HK$96.30B	77.14	5.06%	1.74%	15.05%	-30.92%

China Tobacco International (HK) Co Corporate Events

China Tobacco International (HK) Schedules Board Meeting to Approve Interim Results

China Tobacco International (HK) Company Limited has announced a board meeting scheduled for August 22, 2025, to discuss and approve the interim results for the first half of 2025. The meeting will also consider the declaration of an interim dividend and other business matters, potentially impacting the company’s financial strategy and shareholder interests.

China Tobacco International (HK) Navigates New Draft Regulations

China Tobacco International (HK) Company Limited announced its proactive engagement with China Tobacco International Inc. to maintain its operating position in the Chinese domestic duty-free market amidst new draft regulations by the State Tobacco Monopoly Administration. The company aims to continue its Exclusive Cigarettes Export Business unaffected by these regulations while optimizing its supply chain and enhancing profitability to protect shareholder interests.

China Tobacco International Expands ‘Great Wall’ Cigar Distribution Globally

China Tobacco International (HK) Company Limited has entered into an Exclusive Distribution Agreement with China Tobacco Sichuan to expand the distribution of ‘Great Wall’ cigars from duty-free markets in Thailand, Singapore, Hong Kong, and Macau to a global market, excluding Mainland China. This strategic move aims to broaden the company’s development opportunities and create new revenue streams, enhancing its global sales platform for Chinese cigars.

China Tobacco International (HK) Extends Timeline for Use of Listing Proceeds

China Tobacco International (HK) Company Limited announced an update on the expected timeline for the use of proceeds from its listing. As of the announcement date, approximately 53.5% of the net proceeds have been utilized, with HK$420.5 million remaining. The company has decided to extend the timeline for utilizing these funds to 2027, citing strategic investments, business growth, and international cooperation as key areas of focus. This extension reflects the company’s adaptive strategy in response to evolving market conditions, potentially impacting its operational efficiency and stakeholder interests.

China Tobacco International (HK) Approves Key Resolutions at AGM

China Tobacco International (HK) Company Limited held its Annual General Meeting (AGM) on June 20, 2025, where all proposed resolutions were passed by poll. Key resolutions included the approval of the company’s audited financial statements for 2024, the declaration of a final dividend of HK$0.31 per share, the re-election of directors, and the re-appointment of KPMG as auditors. The AGM also granted the directors mandates to issue and repurchase shares. These decisions are likely to strengthen the company’s governance and financial strategies, potentially impacting its market positioning and shareholder value positively.