HK Stock Market Move | CTIHK(06055) falls by over 4% again, the company expects a 25% to 30% decline in revenue in the first half of the year, with profits decreasing by about 10% to 15%.

CTIHK (06055) fell by more than 4%, as of the time of publication, it has fallen by 4.1% to HKD 19.66, with a turnover of HKD 61.5043 million. On the news front, CTIHK had previously issued a profit warning, expecting a year-on-year decrease of about 25% to 30% in revenue in the first half year; and a decrease of about 10% to 15% in profit in the first half year. This is mainly due to factors such as the impact of international trade relations and shipping schedules on the import business of tobacco products, with the quantity of imported tobacco leaves declining compared to the same period last year; and delays in the export business of cigarettes due to adjustments in the domestic duty-free market business process. Cinda released a research report stating that the company's Brazilian business and tobacco exports are expected to maintain stable performance, with a recovery expected in the new tobacco business with a low base. We believe that the decline in revenue in this period is mainly due to temporary external factors, and if geopolitical conflicts and trade frictions weaken in the second half of the year and business process adjustments accelerate, the pressure on revenue is expected to gradually ease.