Understanding the Market | CTIHK rises over 4% to reach a new high, recently signing exclusive agency agreements for Huanghelou and Taishan cigars in the global market

According to Zhitong Finance APP, China Tobacco Hong Kong (06055) rose more than 4% in early trading, reaching a new high of HKD 45.18. As of the time of publication, it was up 3.73%, reported at HKD 44.78, with a transaction volume of HKD 139 million. In terms of news, China Tobacco Hong Kong recently announced that based on the framework agreement for exporting cigarettes to new regions, it signed an exclusive distribution agreement for "Huanghelou" cigars in the global market with Hubei China Tobacco Industrial Co., Ltd. on September 2, and on September 4, it signed an exclusive agency agreement for "Taishan" cigars in the global market with Shandong China Tobacco Industrial Co., Ltd., further promoting the construction of a global sales platform for Chinese cigars and jointly cultivating the Chinese cigar brand. It is reported that the company reached a strategic cooperation with Sichuan China Tobacco in July, expanding the exclusive distribution scope of "Great Wall" cigars to the global market. Huazheng Securities pointed out that the company is the designated overseas platform responsible for capital market operations and international business expansion for China Tobacco International, carrying the mission of China Tobacco's globalization. From a safety margin perspective, the company's tobacco leaf import and export business serves as the basic platform under the franchise, and the business model ensures stable profitability and excellent cash flow. The export of cigarettes and new tobacco products provides new growth points. With the continuous stable growth of the global tobacco market and the company's market share increasing, the company's performance is expected to continue to grow steadily. From a long-term perspective, China Tobacco Hong Kong carries the strategic responsibility for China Tobacco's overseas business, and the company will gradually concentrate and integrate various overseas resources of China Tobacco, becoming a more competitive market participant in the global tobacco industry