HK Stock Market Move | CTIHK (06055) rose over 8%. The performance in the first half of the year faced pressure, while the gross profit margin for cigarette exports increased significantly.

CTIHK (06055) has risen more than 8%, and as of this report, it is up 7.17%, trading at HK$25.4, with a transaction volume of HK$92.2556 million. On the news front, CTIHK released its mid-term results for 2026, reporting revenue of HK$7.54 billion, a year-on-year decrease of 26.9%; shareholder profit amounted to HK$627 million, a year-on-year decrease of 11.2%; and it plans to distribute a mid-term dividend of HK$0.19 per share. The decline in revenue was mainly affected by the import business of tobacco leaf products and the export business of cigarettes, while significant growth in the export business of tobacco leaf products and operations in Brazil partially offset this impact. In the first half of the year, CTIHK exported 42,563 tons of tobacco leaf products, a year-on-year increase of 10.6%; operating revenue reached HK$1.765 billion, a year-on-year increase of 52.7%. Additionally, the gross margin of cigarette exports significantly improved, with cigarette export volume at 656 million sticks, a year-on-year decrease of 35.6%; revenue was HK$412 million, a year-on-year decrease of 25.3%; the gross margin was 36.1%, an increase of 10.4 percentage points year-on-year. Soochow expects that cigarette exports will recover starting from the second half of the year, and channel and product structure optimization will continue to contribute to profit elasticity.