HK Stock Market Move | CTIHK (06055) rose more than 4%. Institutions suggest paying attention to CTIHK's globalization and the process of injecting China Tobacco assets.

CTIHK (06055) rose by more than 4%, as of the time of publication, it increased by 4.68% to HK$32.4, with a trading volume of HK$91.48 million. Minsheng Securities pointed out that the global tobacco market is transitioning to new tobacco products such as heated non-burning cigarettes, especially in developed markets such as Japan, South Korea, and Europe. China Tobacco can enter this high-growth market by accelerating the research and promotion of new tobacco products. Furthermore, with the reshaping of the global landscape, through economic cooperation and investment in countries along the "Belt and Road" initiative, especially in emerging markets in Southeast Asia, Central Asia, the Middle East, and Africa, China Tobacco can more easily enter these regions and expand its tobacco market. Additionally, some international tobacco companies are unable to enter certain markets due to international sanctions or trade restrictions imposed by their countries. China Tobacco can seize these opportunities to enter these countries, fill market gaps, and increase its market share. The bank also pointed out that CTIHK, as a consolidation platform for China Tobacco's overseas assets, is currently transitioning from a tobacco leaf trader to a tobacco leaf & cigarette producer. In the context of China Tobacco's standardized operation, the parent company's support constitutes a stable cash cow for the company. In the long term, as the traditional tobacco dividend in China gradually comes to an end, CTIHK bears the responsibility of China Tobacco's overseas business. In the context of the global new landscape/new products, CTIHK may accelerate its entry into the overseas cigarette sales market by acquiring assets such as production capacity, channels, and brands.