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

• Market Cap: HK$21.75B
• Dividend Yield: 1.97%
• Average Volume (3M): 3.48M
• Price to Earnings (P/E): 25.5
• Beta (1Y): 0.78
• Revenue Growth: 10.46%
• EPS Growth: 42.58%
• Country: HK
• Employees: 307
• Sector: Consumer Defensive
• Sector Strength: 61
• Industry: Tobacco
• EPS (TTM): 1.23
• Shares Outstanding: 691,680,000
• 10 Day Avg. Volume: 2,859,423
• 30 Day Avg. Volume: 3,479,362
• PEG Ratio: -0.46
• Price to Book (P/B): 3.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -20.64
• 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$34.00
• Price Target Upside: 10.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: HK$34.00 ▲(10.93%Upside)

The stock score reflects strong financial performance, particularly in revenue and profit growth, although cash flow management needs improvement. Technical analysis suggests mixed signals with positive price trends but weak momentum. The valuation indicates the stock could be overvalued, limiting its attractiveness. The absence of notable earnings call insights and corporate events reduces these components' influence.

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 Products Export Business segments. The Tobacco Leaf Products Export Business segment procures and exports tobacco leaf products to cigarette manufacturers and authorized purchasing agents of cigarette manufacturers. The Tobacco Leaf Products Import Business segment imports tobacco leaf products to mainland China. The Cigarettes Export Business segment exports cigarettes to duty-free outlets and cigarettes wholesalers. The New Tobacco Products Export Business segment exports new tobacco products to retailers, cigarettes wholesalers, and independent third parties. It operates in the People's Republic of China, Indonesia, Hong Kong, the Philippines, Vietnam, Singapore, Barzil, and internationally. The company was incorporated in 2004 and is headquartered in Kowloon, Hong Kong. China Tobacco International (HK) Company Limited is a subsidiary of China Tobacco International Group Limited.

How the Company Makes Money

China Tobacco International (HK) Co., Ltd. generates revenue through several key streams. Firstly, the company is involved in the import and export of tobacco leaves, which involves purchasing tobacco leaves from international markets and supplying them to the domestic market in China, as well as exporting Chinese tobacco leaves to other countries. Secondly, the company exports manufactured cigarettes, leveraging the extensive product line of its parent company, China National Tobacco Corporation, to distribute and sell cigarettes in international markets. This diversification into both leaf and finished product markets allows the company to capitalize on its expertise in tobacco trading and its established global networks. Additionally, partnerships with international tobacco growers and manufacturers play a significant role in strengthening its supply chain and expanding its market presence, thereby contributing to its earnings.

China Tobacco International (HK) Co Financial Statement Overview

Summary

China Tobacco International (HK) Co presents a robust financial position with strong revenue and profit growth. The balance sheet is stable but could benefit from a higher equity ratio. Cash flow challenges exist, requiring attention to maintain financial health.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.07B	11.84B	8.32B	8.06B	3.48B
Gross Profit	1.38B	1.09B	793.57M	400.56M	130.72M
EBITDA	1.26B	1.08B	750.92M	738.91M	112.75M
Net Income	853.74M	598.77M	374.90M	702.83M	106.12M
Balance Sheet
Total Assets	9.82B	6.74B	6.37B	4.77B	3.80B
Cash, Cash Equivalents and Short-Term Investments	2.86B	2.33B	1.79B	1.66B	1.63B
Total Debt	2.98B	2.49B	2.11B	1.31B	25.53M
Total Liabilities	6.63B	4.05B	4.13B	2.78B	2.06B
Stockholders Equity	3.01B	2.49B	2.02B	1.76B	1.75B
Cash Flow
Free Cash Flow	610.44M	501.77M	-390.07M	30.13M	31.94M
Operating Cash Flow	629.44M	517.91M	-383.80M	30.97M	42.83M
Investing Cash Flow	-459.99M	-1.70B	-6.27M	12.34M	-10.89M
Financing Cash Flow	-164.01M	-27.05M	512.66M	-43.33M	-156.81M

China Tobacco International (HK) Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.65
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 30.65 is below the 20-day moving average (MA) of 31.66, below the 50-day MA of 31.39, and above the 200-day MA of 25.56, indicating a neutral trend. The MACD of -0.27 indicates Positive momentum. The RSI at 44.62 is Neutral, neither overbought nor oversold. The STOCH value of 50.77 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6055	67 Neutral	HK$21.75B	25.48	31.05%	1.97%	10.46%	42.58%
Sector *	65 Neutral	$27.34B	15.12	-4.22%	3.16%	1.01%	1.94%
TCTZF		$580.85B	21.27	21.25%	0.90%	―	―
CIADF		$7.94B	554.05	0.21%	3.42%	―	―
CRHKF		$10.83B	16.43	15.25%	0.45%	―	―
ESHDF		$39.31M	―	-90.66%	―	―	―
0333	53 Neutral	HK$78.27M	―	-1.92%	―	20.02%	90.55%

China Tobacco International (HK) Co Corporate Events

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.

China Tobacco International (HK) Announces 2025 AGM Agenda

China Tobacco International (HK) Company Limited has announced its upcoming annual general meeting (AGM) scheduled for June 20, 2025, in Hong Kong. Key agenda items include the consideration of the company’s audited financial statements for 2024, the declaration of a final dividend, re-election of directors, and re-appointment of KPMG as auditors. Additionally, a resolution will be proposed to grant the directors a mandate to issue and dispose of shares, limited to 20% of the total issued shares, which could impact the company’s capital structure and shareholder value.