SEHK:6055

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China Tobacco International (HK)

Executive Summary

China Tobacco International (HK) Company Limited engages in the trade of tobacco products. More Details

Rewards

Earnings are forecast to grow 27.14% per year

Earnings grew by 19.7% over the past year

Risk Analysis

No risks detected for 6055 from our risk checks.


Snowflake Analysis

Flawless balance sheet with high growth potential.

Share Price & News

How has China Tobacco International (HK)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6055 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.3%

6055

0.04%

HK Retail Distributors

1.4%

HK Market


1 Year Return

-21.1%

6055

-16.8%

HK Retail Distributors

0.7%

HK Market

Return vs Industry: 6055 underperformed the Hong Kong Retail Distributors industry which returned -16.8% over the past year.

Return vs Market: 6055 underperformed the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

6055IndustryMarket
7 Day-1.3%0.04%1.4%
30 Day-4.6%-3.0%-0.01%
90 Day-14.4%-7.3%-0.1%
1 Year-20.2%-21.1%-14.7%-16.8%4.9%0.7%
3 Yearn/a-44.2%-47.8%-6.9%-17.0%
5 Yearn/a-40.6%-46.8%13.5%-5.8%

Price Volatility Vs. Market

How volatile is China Tobacco International (HK)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Tobacco International (HK) undervalued compared to its fair value and its price relative to the market?

42.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6055 (HK$14.98) is trading above our estimate of fair value (HK$1.76)

Significantly Below Fair Value: 6055 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6055 is poor value based on its PE Ratio (42.2x) compared to the HK Retail Distributors industry average (15.6x).

PE vs Market: 6055 is poor value based on its PE Ratio (42.2x) compared to the Hong Kong market (11.3x).


Price to Earnings Growth Ratio

PEG Ratio: 6055 is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: 6055 is overvalued based on its PB Ratio (6.7x) compared to the HK Retail Distributors industry average (0.6x).


Next Steps

Future Growth

How is China Tobacco International (HK) forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

27.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6055's forecast earnings growth (27.1% per year) is above the savings rate (1.6%).

Earnings vs Market: 6055's earnings (27.1% per year) are forecast to grow faster than the Hong Kong market (22.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 6055's revenue (20.5% per year) is forecast to grow faster than the Hong Kong market (13.3% per year).

High Growth Revenue: 6055's revenue (20.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 6055's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has China Tobacco International (HK) performed over the past 5 years?

-10.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6055 has high quality earnings.

Growing Profit Margin: 6055's current net profit margins (3.5%) are higher than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: 6055's earnings have declined by 10% per year over the past 5 years.

Accelerating Growth: 6055's earnings growth over the past year (19.7%) exceeds its 5-year average (-10% per year).

Earnings vs Industry: 6055 earnings growth over the past year (19.7%) exceeded the Retail Distributors industry 7.2%.


Return on Equity

High ROE: 6055's Return on Equity (15.8%) is considered low.


Next Steps

Financial Health

How is China Tobacco International (HK)'s financial position?


Financial Position Analysis

Short Term Liabilities: 6055's short term assets (HK$1.9B) exceed its short term liabilities (HK$413.9M).

Long Term Liabilities: 6055's short term assets (HK$1.9B) exceed its long term liabilities (HK$23.7M).


Debt to Equity History and Analysis

Debt Level: 6055 is debt free.

Reducing Debt: 6055 has not had any debt for past 5 years.

Debt Coverage: 6055 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 6055 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is China Tobacco International (HK) current dividend yield, its reliability and sustainability?

1.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6055's dividend (1.07%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 6055's dividend (1.07%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.82%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 6055's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 6055's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.1%), 6055's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.6yrs

Average management tenure


CEO

Xuemei Yang (49 yo)

0.58

Tenure

HK$1,785,015

Compensation

Ms. Yang Xuemei joined China Tobacco International (HK) Company Limited in October 2018 as the Vice General Manager until March 17, 2020 and has been its Executive Director since December 18, 2018. Ms. Yan ...


CEO Compensation Analysis

Compensation vs Market: Xuemei's total compensation ($USD230.32K) is below average for companies of similar size in the Hong Kong market ($USD561.28K).

Compensation vs Earnings: Insufficient data to compare Xuemei's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Xuemei Yang
GM & Executive Director0.58yrHK$1.79mno data
Chengrui Wang
Manager of the Securities Department1.83yrsHK$1.91mno data
Yan Li
Vice GM & Executive Director0.58yrno datano data
Deqing Liang
Vice GM & Executive Director0.58yrno datano data
Kai Cheong Cheung
Joint Company Secretary1.33yrsno datano data

0.6yrs

Average Tenure

49yo

Average Age

Experienced Management: 6055's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Xuemei Yang
GM & Executive Director0.58yrHK$1.79mno data
Chengrui Wang
Manager of the Securities Department1.83yrsHK$1.91mno data
Yan Li
Vice GM & Executive Director0.58yrno datano data
Deqing Liang
Vice GM & Executive Director0.58yrno datano data
Yi Qian
Independent Non-Executive Director1.42yrsno datano data
Kwok Keung Chau
Independent Non-Executive Director1.83yrsHK$360.00kno data
Xinhua Wang
Independent Non-Executive Director1.83yrsHK$360.59kno data
Siu Lui Chow
Independent Non-Executive Director1.83yrsHK$360.00kno data
Yan Shao
Non-Executive Chairman2.33yrsno datano data

1.8yrs

Average Tenure

54yo

Average Age

Experienced Board: 6055's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

China Tobacco International (HK) Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Tobacco International (HK) Company Limited
  • Ticker: 6055
  • Exchange: SEHK
  • Founded: 2004
  • Industry: Distributors
  • Sector: Retail
  • Market Cap: HK$10.403b
  • Shares outstanding: 691.68m
  • Website: https://www.ctihk.com.hk

Number of Employees


Location

  • China Tobacco International (HK) Company Limited
  • Tower A, China Life Center
  • Room 1002, 10th Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6055SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2019
CTOB.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2019
6055SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2019

Biography

China Tobacco International (HK) Company Limited engages in the trade of tobacco products. The company operates through four segments: Tobacco Leaf Products Export Business, Tobacco Leaf Products Import Bu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 13:05
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.