China Tobacco International (HK) Co Ltd (HK:6055)
:6055
Top Page
China Tobacco International (HK) Co
(6055)
Select Model
Select Model
Rating:72Outperform
Price Target:
HK$45.00
â–²(25.91% Upside)
Action:UpgradedDate:01/22/26
The score is driven primarily by strong financial performance (revenue and margin improvements plus strong ROE), partially offset by weak cash flow trends (lower operating cash flow and zero free cash flow in 2024). Technicals show an uptrend but with overbought signals (RSI ~75), and valuation looks demanding (P/E ~27.5) with only a modest dividend yield.
Positive Factors
Revenue and Margin Improvement
Consistent double-digit revenue growth and rising gross and net margins reflect durable demand and improved cost control in the company's trading and export operations. Over the medium term, this supports reinvestment, scalable margins from higher throughput, and resilience of core trading economics.
Negative Factors
Weak Cash Generation
A sharp decline in operating cash flow and zero free cash flow undermine the company's ability to internally fund inventory, capex, and distributions. For a trading business with heavy working capital needs, persistent weak cash conversion forces reliance on external financing and limits strategic flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Margin Improvement
Consistent double-digit revenue growth and rising gross and net margins reflect durable demand and improved cost control in the company's trading and export operations. Over the medium term, this supports reinvestment, scalable margins from higher throughput, and resilience of core trading economics.
Read all positive factors
China Tobacco International (HK) Co (6055) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$24.17B
Dividend Yield1.44%
Average Volume (3M)2.08M
Price to Earnings (P/E)25.1
Beta (1Y)0.80
Revenue Growth14.77%
EPS Growth16.77%
CountryHK
Employees307
SectorConsumer Defensive
Sector Strength42
IndustryTobacco
Share Statistics
EPS (TTM)0.40
Shares Outstanding691,680,000
10 Day Avg. Volume3,036,355
30 Day Avg. Volume2,080,103
Financial Highlights & Ratios
PEG Ratio0.47
Price to Book (P/B)5.47
Price to Sales (P/S)1.26
P/FCF Ratio26.91
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$46.24Price Target Upside29.38% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.57
Revenue Forecast (FY)HK$15.45B
China Tobacco International (HK) Co Business Overview & Revenue Model
Company Description
China Tobacco International (HK) Company Limited engages in the trade of tobacco products. The company operates through Tobacco Leaf Products Export Business, Tobacco Leaf Products Import Business, Cigarettes Export Business, and New Tobacco Produ...
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 dist...
China Tobacco International (HK) Co Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| 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
Negative
35.74
Price Trends
39.24
Negative
37.12
Negative
37.31
Negative
Market Momentum
-1.46
Positive
40.61
Neutral
30.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6055, the sentiment is Negative. The current price of 35.74 is below the 20-day moving average (MA) of 36.00, below the 50-day MA of 39.24, and below the 200-day MA of 37.31, indicating a bearish trend. The MACD of -1.46 indicates Positive momentum. The RSI at 40.61 is Neutral, neither overbought nor oversold. The STOCH value of 30.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6055.
China Tobacco International (HK) Co Peers Comparison
UnderperformOutperform
Sector (62)
HK:6055
China Tobacco International (HK) Co
34.70
12.87
58.96%
HK:6969
Smoore International Holdings Limited
9.85
-1.30
-11.66%
China Tobacco International (HK) Co Corporate Events
China Tobacco International (HK) Strengthens Board Governance With New Lead INED and Committee Appointment
Dec 31, 2025
China Tobacco International (HK) Company Limited has designated existing independent non-executive director (INED) Chow Siu Lui as lead independent non-executive director, effective 31 December 2025, to strengthen corporate governance. Chow, who a...
China Tobacco International (HK) Details Board and Committee Structure
Dec 31, 2025
China Tobacco International (HK) Company Limited has announced the current composition of its board of directors and the allocation of roles across its five key board committees. The board is chaired by non-executive director Shao Yan and includes...
China Tobacco International (HK) Tightens Governance With Revised Nomination Committee Mandate
Dec 31, 2025
China Tobacco International (HK) Company Limited has formalised updated terms of reference for its Nomination Committee, specifying that the committee will be composed of at least three directors, with a majority being independent non-executive di...
China Tobacco International Extends Key Tobacco Leaf Supply and Service Deals With Alliance One
Dec 31, 2025
China Tobacco International (HK) Company Limited has renewed a series of framework agreements governing the sale and purchase of tobacco leaves and related services with Alliance One International and its Brazilian subsidiary, Alliance One Brazil,...
China Tobacco International Expands Global Cigar Distribution
Nov 6, 2025
China Tobacco International (HK) Company Limited has entered into an exclusive distribution agreement with China Tobacco Anhui for the global market distribution of ‘Wangguan’ cigars, excluding Mainland China. This agreement extends th...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.