HK Stock Market Move | CTIHK (06055) continues to rise by over 4%, with annual net profit expected to increase by over 30%. The company is expected to integrate resources from China Tobacco.

CTIHK (06055) rose by over 4%, as of the time of the report, it increased by 4.13% to HK$25.2, with a transaction amount of HK$213.54 million. In terms of news, CTIHK recently announced a profit warning, forecasting that the annual net profit for 2024 will increase by no less than 30% year-on-year. China International Securities believes this is in line with expectations and is optimistic about the synergy between CTIHK's internal growth and external expansion. They believe CTIHK, as the exclusive license holder and the international capital operation platform under China Tobacco Group, has rare value. Guotai Junan pointed out that China Tobacco Group positions CTIHK as a platform for capital market operations and international business expansion. The company is expected to integrate resources within the China Tobacco Group as a listing platform. In 2021, the company acquired China Tobacco Brazil, empowering the latter in management, production, sales, and governance to increase profits. Subsequent mergers and acquisitions are expected to bring additional performance elasticity to the company, with potential synergies in management empowerment.