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

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

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China Tobacco International (HK) Co

(6055)

Rating:67Neutral
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 (6055) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionChina 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 MoneyChina 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
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
Negative
Last Price30.65
Price Trends
50DMA
31.39
Negative
100DMA
28.09
Positive
200DMA
25.56
Positive
Market Momentum
MACD
-0.27
Positive
RSI
44.62
Neutral
STOCH
50.77
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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
HK$21.75B25.4831.05%1.97%10.46%42.58%
65
Neutral
$27.34B15.12-4.22%3.16%1.01%1.94%
$580.85B21.2721.25%0.90%
$7.94B554.050.21%3.42%
$10.83B16.4315.25%0.45%
$39.31M-90.66%
53
Neutral
HK$78.27M-1.92%20.02%90.55%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6055
China Tobacco International (HK) Co
30.65
16.02
109.50%
TCTZF
Tencent Holdings
63.95
15.90
33.09%
CIADF
China Mengniu Dairy Co
2.00
0.28
16.28%
CRHKF
China Resources Beer (Holdings) Co
3.38
0.12
3.68%
ESHDF
Esprit Holdings
0.03
<0.01
50.00%
HK:0333
Top Form International Limited
0.26
-0.04
-13.33%

China Tobacco International (HK) Co Corporate Events

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.

China Tobacco International (HK) Announces 2025 AGM Agenda
Apr 23, 2025

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.

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: Jun 20, 2025