SEHK:6055

Stock Analysis Report

China Tobacco International (HK)

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with moderate 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


Market Performance


7 Day Return

-4.8%

6055

0.9%

HK Retail Distributors

0.3%

HK Market


1 Year Return

n/a

6055

-7.1%

HK Retail Distributors

-1.5%

HK Market

Return vs Industry: Insufficient data to determine how 6055 performed against the Hong Kong Retail Distributors industry.

Return vs Market: Insufficient data to determine how 6055 performed against the Hong Kong Market.


Shareholder returns

6055IndustryMarket
7 Day-4.8%0.9%0.3%
30 Day-17.2%-1.6%0.5%
90 Day-18.1%-4.1%-4.4%
1 Yearn/a-4.5%-7.1%2.1%-1.5%
3 Yearn/a-24.5%-30.8%14.7%3.2%
5 Yearn/a-39.3%-49.0%21.5%1.2%

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?

61.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6055 (HK$18.84) is trading above our estimate of fair value (HK$1.75)

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 (61.4x) compared to the Retail Distributors industry average (12.5x).

PE vs Market: 6055 is poor value based on its PE Ratio (61.4x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: 6055 is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: 6055 is overvalued based on its PB Ratio (9.7x) compared to the HK Retail Distributors industry average (0.8x).


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?

22.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6055's forecast earnings growth (22.5% per year) is above the savings rate (2%).

Earnings vs Market: 6055's earnings (22.5% per year) are forecast to grow faster than the Hong Kong market (11.2% per year).

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

Revenue vs Market: 6055's revenue (3.4% per year) is forecast to grow slower than the Hong Kong market (10.4% per year).

High Growth Revenue: 6055's revenue (3.4% per year) is forecast to grow slower 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?

-16.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 6055's earnings have declined by -16.5% per year over the past 5 years.

Accelerating Growth: 6055's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6055 had negative earnings growth (-32.1%) over the past year, making it difficult to compare to the Retail Distributors industry average (-13.3%).


Return on Equity

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


Return on Assets

ROA vs Industry: 6055 has a higher Return on Assets than the Retail Distributors industry average last year.


Return on Capital Employed

ROCE Improving: 6055's Return on Capital Employed has declined over the past 3 years.


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$2.2B) exceeds its short term liabilities (HK$947.1M)

Long Term Liabilities: 6055 has no long term liabilities


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

Inventory Level: 6055 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 6055's debt is covered by short term assets.


Next Steps

Dividend

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

0.64%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage5.0%forecastin3Years0.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 6055's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 6055's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 6055's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6055's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 6055's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of China Tobacco International (HK)'s salary, the management and board of directors tenure and is there insider trading?


CEO

China Tobacco International (HK) has no CEO, or we have no data on them.


Insider Trading

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


Ownership Breakdown


Management Team


    Board Members

      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$13.031b
      • Shares outstanding: 691.68m
      • Website: https://www.ctihk.com.hk

      Number of Employees


      Location

      • China Tobacco International (HK) Company Limited
      • Concordia Plaza
      • Greenfield Tower, Room 1901
      • Kowloon
      • Kowloon
      • Hong Kong

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      6055SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 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 Import Business, Tobacco Leaf Products Export Bu ...


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2019/10/22 12:52
      End of Day Share Price2019/10/22 00:00
      Earnings2019/06/30
      Annual Earnings2018/12/31


      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.