CTIHK (06055) is trending upwards. As of the time of publication, it is reported at 16.94 Hong Kong dollars, up 3.04%, with a turnover of 16.5169 million Hong Kong dollars. The stock has risen by 22.5% cumulatively since June.
CICC stated that CTIHK's profits exceeded expectations due to the rapid growth of its cigarette export business and continuous growth of its tobacco import business. The bank estimates that with the rapid growth of CTIHK's cigarette export business and strengthening of its Alpha, the company's first-half performance is expected to continue to grow rapidly against a high base, and it is bullish on the company's unique exclusive license and scarcity value as China Tobacco's international capital operation platform to rise with multiple business synergies in the medium to long term. The bank maintains a neutral rating and raises its target price by 29% to HK$16.5.
In addition, Tianfeng Securities believes that the company's tobacco import and export business and cigarette export business are in a prosperous industry, and considers that the company has significant advantages behind China Tobacco Group and significant barriers, making it currently the rare international business platform under China Tobacco and a direct beneficiary of the development and change of China's tobacco industry. The bank maintains a "buy" rating.