HK Stock Market Move | CTIHK (06055) rose nearly 4%, with the company's cigarette export sales expected to increase. The market share of HNB is expected to accelerate.

CTIHK (06055) rose nearly 4%, as of the time of writing, it was up 3.81% to HK$23.1, with a turnover of HK$29.6141 million. Sinolink released a research report stating that the company is responsible for selling cigarettes under China Tobacco International in some global markets. Due to the recovery of inbound and outbound traffic, the company's revenue from this business in 2023 increased by 875.8% year-on-year to HK$1.21 billion, accounting for 10.2%, and the revenue from this business in the first half of 2024 increased by 128.0% year-on-year. Looking ahead, with the further recovery of inbound and outbound passenger flow (in 2024, the national inbound and outbound traffic has recovered to 91% of 2019), combined with the expansion of the company's regional and channel coverage (such as tax-free markets), the company's cigarette export sales volume is expected to increase. In terms of profitability, the trend of optimizing product assortment and increasing the proportion of direct-operated/self-operated stores has emerged. Profit improvement is certain, and there is potential for elastic growth. The HNB (Heated Tobacco Products) business is in a period of development dividend, with product strength improvement and regional expansion accelerating development. The revenue contribution of this business in 2023 was 1.1%, with a CAGR of 48% from 2019 to 2023, and a revenue growth of 28% year-on-year in the first half of 2024. According to Euromonitor, the global scale of HNB in 2023 reached US$34.1 billion, and the CAGR from 2023 to 2027 is expected to reach 13.5%, indicating that the industry is in a period of development dividend. Currently, China Tobacco International's market share for HNB brands is still relatively low. With the continued improvement of product strength (such as natural tobacco heating technology) and ongoing regional expansion, the market share is expected to increase rapidly.