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

• Market Cap: HK$26.17B
• Dividend Yield: 1.32%
• Average Volume (3M): 1.73M
• Price to Earnings (P/E): 28.5
• Beta (1Y): 0.78
• Revenue Growth: 14.77%
• EPS Growth: 16.77%
• Country: HK
• Employees: 307
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Tobacco
• EPS (TTM): 1.02
• Shares Outstanding: 691,680,000
• 10 Day Avg. Volume: 2,082,600
• 30 Day Avg. Volume: 1,730,898
• PEG Ratio: 0.47
• Price to Book (P/B): 5.47
• Price to Sales (P/S): 1.26
• P/FCF Ratio: 26.91
• 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$41.80
• Price Target Upside: 3.77% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 10.8
• Revenue Forecast (FY): HK$117.44B

• Rating: 60 Neutral
• Price Target: HK$40.00 ▼(-0.70% Downside)

The overall stock score is primarily influenced by the company's strong financial performance, despite cash flow challenges. Technical analysis indicates bearish momentum, which negatively impacts the score. The high P/E ratio suggests overvaluation, further affecting the overall score.

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 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 distributors and retailers worldwide. Key revenue streams include direct sales to foreign markets, partnerships with local distributors, and licensing agreements that allow other companies to produce and sell its brands. Additionally, the company benefits from economies of scale due to its affiliation with the China National Tobacco Corporation, which provides it with access to a vast tobacco supply and resources for efficient production and distribution. Market demand for tobacco products, pricing strategies, and regulatory factors in different regions also significantly influence the company's 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 reflects stability with a stable leverage position and improved ROE. However, cash flow challenges persist, 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	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

• Technical Analysis Sentiment: Positive
• Last Price: 40.28
• 50DMA: Negative
• 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 40.28 is above the 20-day moving average (MA) of 38.61, below the 50-day MA of 41.79, and above the 200-day MA of 32.70, indicating a neutral trend. The MACD of -1.05 indicates Negative momentum. The RSI at 46.77 is Neutral, neither overbought nor oversold. The STOCH value of 65.97 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
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
6055	60 Neutral	HK$26.17B	28.55	28.61%	1.32%	14.77%	16.77%
6969	56 Neutral	HK$78.16B	63.96	5.06%	1.94%	15.05%	-30.92%

China Tobacco International (HK) Co Corporate Events

China Tobacco International Expands Global Cigar Distribution

China Tobacco International (HK) Company Limited has entered into exclusive distribution agreements with China Tobacco Hubei and China Tobacco Shandong for the global distribution of ‘Huanghelou’ and ‘Taishan’ cigars, respectively. This strategic move extends their distribution from duty-free markets in select regions to a global scale, excluding Mainland China, and is expected to enhance their global market strategy, broaden development opportunities, and generate new revenue streams.

The most recent analyst rating on (HK:6055) stock is a Buy with a HK$45.00 price target. To see the full list of analyst forecasts on China Tobacco International (HK) Co stock, see the HK:6055 Stock Forecast page.

China Tobacco International (HK) Co Expands Offshore Tobacco Leaf Sales

China Tobacco International (HK) Co has entered into an Offshore Sales of Tobacco Leaf Products Framework Agreement with subsidiaries and associates of CNTC, marking a strategic move in its Tobacco Leaf Products Export Business. This agreement, effective from August 29, 2025, to December 31, 2027, involves long-term supply arrangements and pricing determined through negotiations, aligning with international market practices, and is subject to reporting requirements under Hong Kong’s Listing Rules.

The most recent analyst rating on (HK:6055) stock is a Buy with a HK$45.00 price target. To see the full list of analyst forecasts on China Tobacco International (HK) Co stock, see the HK:6055 Stock Forecast page.

China Tobacco International (HK) Announces Interim Dividend for 2025

China Tobacco International (HK) Company Limited announced an interim ordinary cash dividend of HKD 0.19 per share for the six months ending 30 June 2025. The ex-dividend date is set for 9 September 2025, with the payment date scheduled for 26 September 2025. This announcement reflects the company’s ongoing financial strategies and its commitment to providing returns to its shareholders.

The most recent analyst rating on (HK:6055) stock is a Buy with a HK$40.00 price target. To see the full list of analyst forecasts on China Tobacco International (HK) Co stock, see the HK:6055 Stock Forecast page.

China Tobacco International (HK) Reports Strong Interim Results for 2025

China Tobacco International (HK) Company Limited reported its unaudited consolidated interim results for the first half of 2025, showing a revenue increase of 18.5% year-on-year to HK$10.32 billion. Despite a slight decrease in gross profit, the company achieved a 6.3% rise in profit for the period, attributing a 9.8% increase to equity shareholders. The board announced a 26.7% increase in interim dividend per share, reflecting the company’s commitment to generating higher returns for shareholders.

The most recent analyst rating on (HK:6055) stock is a Buy with a HK$40.00 price target. To see the full list of analyst forecasts on China Tobacco International (HK) Co stock, see the HK:6055 Stock Forecast page.

China Tobacco International (HK) Schedules Board Meeting to Approve Interim Results

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.