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China Tobacco International (HK) Co Ltd (HK:6055)
:6055
Hong Kong Market
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China Tobacco International (HK) Co (6055) AI Stock Analysis

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HK:6055

China Tobacco International (HK) Co

(6055)

Rating:76Outperform
Price Target:
HK$45.00
▲(3.78% 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 (6055) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionChina Tobacco International (HK) Co., Ltd. (6055) is a subsidiary of China National Tobacco Corporation, primarily engaged in the international trading of tobacco products. The company focuses on the purchase, sale, and marketing of tobacco leaf, cigarettes, and other tobacco-related products. It operates in different sectors, including the import and export of tobacco and the manufacturing and distribution of tobacco products globally.
How the Company Makes MoneyChina Tobacco International (HK) Co., Ltd. generates revenue through the import and export of tobacco leaf and manufactured tobacco products, such as cigarettes. The company leverages its position as a subsidiary of China National Tobacco Corporation to access extensive networks for sourcing high-quality tobacco and distributing its products internationally. Revenue streams include direct sales of tobacco products to international markets, strategic partnerships with global distributors, and contracts with international tobacco companies. Additionally, the company benefits from its ability to secure competitive pricing and maintain a strong supply chain, which enhances its profitability in the competitive global tobacco industry.

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. However, there are cash flow challenges with zero free cash flow reported in 2024, which could impact future operations. Improvements in operational efficiency and cash flow management are necessary.
Income Statement
85
Very Positive
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
78
Positive
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
70
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue13.07B11.84B8.32B8.06B3.48B
Gross Profit1.38B1.09B793.57M400.56M130.72M
EBITDA1.26B1.08B750.92M738.91M112.75M
Net Income853.74M598.77M374.90M702.83M106.12M
Balance Sheet
Total Assets9.82B6.74B6.37B4.77B3.80B
Cash, Cash Equivalents and Short-Term Investments2.86B2.33B1.79B1.66B1.63B
Total Debt2.98B2.49B2.11B1.31B25.53M
Total Liabilities6.63B4.05B4.13B2.78B2.06B
Stockholders Equity3.01B2.49B2.02B1.76B1.75B
Cash Flow
Free Cash Flow610.44M501.77M-390.07M30.13M31.94M
Operating Cash Flow629.44M517.91M-383.80M30.97M42.83M
Investing Cash Flow-459.99M-1.70B-6.27M12.34M-10.89M
Financing Cash Flow-164.01M-27.05M512.66M-43.33M-156.81M

China Tobacco International (HK) Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price43.36
Price Trends
50DMA
35.17
Positive
100DMA
32.80
Positive
200DMA
28.80
Positive
Market Momentum
MACD
2.34
Negative
RSI
71.44
Negative
STOCH
85.80
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6055, the sentiment is Positive. The current price of 43.36 is above the 20-day moving average (MA) of 39.33, above the 50-day MA of 35.17, and above the 200-day MA of 28.80, indicating a bullish trend. The MACD of 2.34 indicates Negative momentum. The RSI at 71.44 is Negative, neither overbought nor oversold. The STOCH value of 85.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6055.

China Tobacco International (HK) Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
HK$29.58B32.2628.61%1.15%14.77%16.77%
62
Neutral
$20.49B14.73-2.69%3.15%1.98%-5.13%
62
Neutral
HK$118.28B96.815.06%1.31%15.05%-30.92%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6055
China Tobacco International (HK) Co
44.50
29.24
191.61%
HK:6969
Smoore International Holdings Limited
18.98
10.32
119.17%

China Tobacco International (HK) Co Corporate Events

China Tobacco International (HK) Schedules Board Meeting to Approve Interim Results
Aug 12, 2025

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
Jul 27, 2025

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
Jul 25, 2025

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
Jun 27, 2025

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
Jun 20, 2025

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.

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.Date of analysis: Aug 27, 2025