HK Stock Market Move | CTIHK(06055) rose by more than 7% again, domestic HNB product research and development progress has accelerated, and the company's market share is expected to increase rapidly.

CTIHK (06055) rose by over 7%, reaching a 7.35% increase to HK$26.3 as of the time of reporting, with a trading volume of HK$88.9394 million. Zheshang released a research report stating that the global trend towards smoking control is accelerating, with the market share of new tobacco products continually increasing. By 2023, the market size for HNB (Heat-Not-Burn) products will reach 34.1 billion US dollars, with a CAGR of over 23% between 2018 and 2023, showing rapid development. The progress in research and development of HNB products domestically has accelerated, leading to significant growth in business and profitability levels, with great potential for future development. As of 2018, provincial tobacco companies under China Tobacco had submitted 1,391 technical patent applications related to the manufacturing of heat-not-burn products. Many international trading companies have shown strong interest in Chinese heat-not-burn products and are actively introducing them to overseas markets. Sinolink pointed out that the HNB products are currently in a period of development dividend, with product enhancement and regional expansion driving accelerated development. The revenue share of this business in 2023 is 1.1%, with a CAGR of 48% between 2019 and 2023, and a year-on-year revenue growth of 28% in the first half of 2024. According to Euromonitor, the global market size for HNB products will reach 34.1 billion US dollars by 2023, and is expected to maintain a CAGR of 13.5% between 2023 and 2027, indicating that the industry is currently in a period of development dividend. Currently, the market share of China Tobacco's HNB brand is still relatively low, but with continued product enhancement (such as natural smoke technology) and ongoing regional expansion, the market share is expected to accelerate.