HK Stock Market Move | CTIHK(06055) up more than 5% to a record high. The increase in tobacco prices and resumption of cigarette exports boost performance. There is room for imagination in mergers and acquisitions.

CTIHK (06055) rose more than 5% during trading, reaching a high of 28.4 HKD, a new record high since its listing, with a year-to-date cumulative increase of over 2%. At the time of writing, it rose 4.09% to 28 HKD, with a trading volume of 1.3 billion HKD. GuoZheng International pointed out that due to extreme weather changes in the past two years, global tobacco production has decreased, resulting in a continuous increase in tobacco prices. Tobacco consumption has strong stability, so the company's performance is expected to continue to grow against the background of price increases. Additionally, there is still room for recovery and growth in tobacco exports. In addition, the expansion of new tobacco business in the future, as well as potential mergers and acquisitions, will become potential growth engines. As the only capital operation platform under China Tobacco, CTIHK has great room for imagination in future mergers and acquisitions. Minsheng Securities believes that in the long term, with the gradual end of the traditional tobacco dividend in China, CTIHK may accelerate its entry into the overseas cigarette sales market with taxes through mergers and acquisitions of assets such as production capacity, channels, and brands. Sealand points out that as the only listed company in the Chinese tobacco system with tobacco as its main business, backed by solid barriers, the bank believes that the optimization of the company's export business product structure and the improvement of its self-operated business scale will drive an overall increase in the company's gross profit margin.