Changes in Hong Kong stocks | China Tobacco Hong Kong (06055) rose more than 5% and recently signed a framework agreement with Mengkun Company, which is expected to help grow the duty-free cigarette business

The Zhitong Finance App learned that China Tobacco Hong Kong (06055) rose by more than 5%. As of press release, it had risen 4.28% to HK$25.6, with a turnover of HK$119 million.

According to the news, China Tobacco Hong Kong recently issued an announcement announcing that it has signed a framework agreement with Mengkun, a subsequent contracting party, to continue to promote procurement transactions for its exclusive cigarette export business. According to the announcement, the main terms of the framework agreement are the same as the previous agreement with the original contracting parties, and no annual cap is set, and the transaction period is indefinite. Huaan Securities believes that the company's current framework agreement with Mengkun can further expand the company's duty-free cigarette supply and help the company further grow its exclusive cigarette export business revenue and profitability.

Huaan Securities pointed out that the company is China Tobacco International's designated overseas platform responsible for capital market operations and international business development, and carries China Tobacco's global mission. Looking at the margin of safety, the company's tobacco import and export business is the basic market under the franchise. The business model determines stable profitability, excellent cash flow, and provides new growth points for cigarette and new tobacco exports. As the global tobacco market continues to grow steadily and the company's share increases, the company's performance is expected to continue to grow steadily. Looking at the long-term perspective, China Tobacco Hong Kong bears the strategic responsibility of China Tobacco's overseas business. The company will gradually concentrate and integrate China Tobacco's various overseas resources to become a more competitive market participant in the global tobacco industry.