$CTIHK (06055.HK)$ Intraday rose more than 5%, reaching a high of 28.4 Hong Kong dollars to set a new high, with a cumulative increase of over 2 times so far this year. As of the publication, it rose by 5.02%, to 28.25 Hong Kong dollars, with a turnover of 0.138 billion Hong Kong dollars.

Guojing Guoji pointed out that due to extreme weather changes in the past two years, global tobacco production has decreased, leading to a continuous rise in tobacco prices. Tobacco consumption has relatively strong stability, so the company's performance is expected to continue to grow against the backdrop of price increases. At the same time, there is still room for the recovery growth of cigarette exports. In addition, the future expansion of new tobacco businesses, as well as potential mergers and acquisitions, will become potential growth engines. As the only capital operation platform under China Tobacco Group, CTIHK has great room for imagination in future mergers and acquisitions.

Minsheng Securities believes that in the long run, with the gradual end of the domestic traditional tobacco dividend, CTIHK may accelerate its entry into overseas cigarette sales markets with taxes by acquiring assets such as production capacity, channels, and brands. Sealand Securities also points out that as the only listed company in the Chinese tobacco system with tobacco as its core business, backed by solid barriers, the bank believes that the optimization of the company's export business product structure and the increase in self-operated business scale will drive the overall gross margin of the company.