Jinwu Financial News | According to Tianfeng Securities Research Report, China Tobacco Hong Kong (06055) released the 2023 annual results announcement, achieving revenue of HK$11.836 billion in 2023, +42.19% year over year; achieving gross profit of HK$1,088 billion, +34.96% year over year; and achieving net profit attributable to the company's equity holders of HK$599 million, a significant increase of 59.72% over the previous year, higher than the previous profit forecast.
The bank believes that the company is an international business development platform designated by China Tobacco Corporation and the sole operating entity for related trade business. As overseas duty-free passenger flow continues to resume and the new tobacco business continues to develop, the company's various business segments are expected to continue to achieve steady, moderate and positive high-quality growth. In the future, the company is expected to continue to strengthen pricing capabilities, grasp the growing demand for domestic cigar tobacco leaves, actively explore taxable cigarette business development models, accelerate the introduction of new product regulations, accelerate the development of new types of tobacco, and continue to improve profitability.
The bank believes that the company relies on China Tobacco Group and has significant barriers. It is currently the only international business platform under China Tobacco. It is scarce, and is expected to be a direct beneficiary of the development and transformation of China's tobacco industry. As the company's export business is expected to continue to grow, the bank expects revenue of HK$136.36/152.77/HK$17.197 billion in 24/25/26 (HK$152.64/17.445 billion before 24/25); net profit of HK$695/7.78/ HK$913 million (HK$1,024/1.121 billion before 24/25); the company is the only international business platform for the Chinese tobacco system, maintaining a “buy” rating.