Core view: The company's revenue grew steadily in 2019 and expanded the Southeast Asian market. In 2019, the company achieved operating income of HK$8976.95 million (YoY + 27.6%), gross profit of HK$418.84 million (YoY +12.3%), net profit of HK$318.93 million (YoY +22.9%) after deducting non-return net profit of HK$318.93 million (YoY +22.9%). By product, tobacco leaf exports advanced rapidly, with revenue of HK$2157.88 million (YoY +83.0%), and the Southeast Asian market continued to expand; cigarette exports achieved revenue of HK$2161.36 million (YoY +44.3%), export revenue of new tobacco products was HK$26.82 million (YoY +58.8%), and sales volume increased nearly exponentially. In terms of gross margin, the company's gross profit margin is 4.67% (-0.64pct), mainly due to declining revenue in regions with moderate profit expansion and moderate profit margins in the early stages of development. Expand the brand matrix+expand direct sales channels to strategically develop new types of tobacco. (1) During the reporting period, the company added 15 new cigarette product regulations, 7 new tobacco brands, and 14 new tobacco product standards, effectively optimizing the product structure to help improve profit levels; (2) In-depth cooperation with duty-free shops to expand direct cigarette sales channels to achieve direct sales channels for all Chinese cigarette brands in Hong Kong West Kowloon High Speed Rail Station, covering a total of 350 duty-free sales terminals; (3) The rapid growth of new tobacco products, export volume increased by 96.1% in 2019, gross profit increased by 400%, adding 11 new international markets, with an expected release volume of 11 new markets.。 Profit forecasts and investment advice. After the listing of China Tobacco Hong Kong, China Tobacco will give full play to its role as a capital management platform, focus on external tobacco markets such as the “Belt and Road” region, and enhance the global competitiveness of China Tobacco. The company's overall performance is expected to grow steadily. The company's net profit for the period 2020-2022 is estimated to be HK$365, 4.02 and HK$441 million, respectively, and EPS of HK$0.53, 0.58 and HK$0.64 per share, respectively. No ratings will be given yet. Risk warning. The trade war between China and the US has affected import and export policies; other countries' imports of tobacco products have raised taxes; regulations on new tobacco products have become stricter; and the global pandemic has affected the resumption of import and export work.