HK Stock Market Move | CTIHK (06055) rose by more than 4%, with annual net profit expected to increase by more than 30% year-on-year. The institution pointed out that the franchise rights have laid the foundation for the company's performance.

CTIHK (06055) rose by over 4% again, with a cumulative increase of over 17% since the beginning of the year. As of the time of writing, it rose by 4.07% to 28.15 Hong Kong dollars, with a transaction amount of 1.48 billion Hong Kong dollars. On the news front, CTIHK previously announced profit, forecasting that the net profit for the year 2024 will increase by no less than 30% year-on-year. Zhongjin believes that the company's business internal growth and external expansion are synergistic, and it believes that CTIHK has exclusive licenses and serves as an international capital operation platform under China Tobacco Group, with scarce value. Tianfeng believes that the company, backed by China Tobacco Group, has significant competitive advantages and is currently the only overseas capital operation and international business expansion platform under China Tobacco, making it scarce and likely to be a direct beneficiary of the development and transformation of the Chinese tobacco industry. Sinolink recently issued a research report covering CTIHK for the first time, giving a "buy" rating and forecasting the company's EPS for 2024-26 to be 1.15/1.40/1.66 Hong Kong dollars, with a target price of 32.2 Hong Kong dollars. The firm pointed out that in the first half of 2024, the company's revenue/mother net profit increased by 12.4%/40.8% respectively, with ROE maintained at over 20% for many years. The franchise rights lay the foundation for the company's performance, highlighting its scarcity and certainty attributes.