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

• Market Cap: HK$23.79B
• Dividend Yield: 1.33%
• Average Volume (3M): 3.57M
• Price to Earnings (P/E): 27.9
• Beta (1Y): 0.79
• Revenue Growth: 10.46%
• EPS Growth: 42.58%
• Country: HK
• Employees: 307
• Sector: Consumer Defensive
• Sector Strength: 58
• Industry: Tobacco
• EPS (TTM): 0.30
• Shares Outstanding: 691,680,000
• 10 Day Avg. Volume: 4,595,167
• 30 Day Avg. Volume: 3,570,529
• PEG Ratio: 3.42
• Price to Book (P/B): 7.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 57.55
• 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: -1.59% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: HK$41.00 ▲(18.67%Upside)

China Tobacco International (HK) Co's stock score reflects robust financial performance and strong technical momentum. However, the high valuation and cash flow concerns temper the overall attractiveness of the stock. Continued operational improvements and prudent cash management could enhance the investment potential.

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 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

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: Positive
• Last Price: 34.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 34.55 is above the 20-day moving average (MA) of 32.67, above the 50-day MA of 32.80, and above the 200-day MA of 26.82, indicating a bullish trend. The MACD of 0.69 indicates Negative momentum. The RSI at 57.96 is Neutral, neither overbought nor oversold. The STOCH value of 56.27 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6055	71 Outperform	HK$23.79B	27.87	31.05%	1.33%	10.46%	42.58%
Sector *	65 Neutral	$27.10B	15.29	-1.16%	3.10%	1.15%	2.75%
6969	62 Neutral	HK$135.21B	94.10	6.03%	0.48%	3.80%	-22.16%

China Tobacco International (HK) Co Corporate Events

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.