HK Stock Market Move | China Tourism Group Duty Free Corporation (01880) fell by more than 3%. Last year, the sales of duty-free stores in Hainan offline decreased by 29% year-on-year. The impact of the decline may weaken in 2025.

China Tourism Group Duty Free Corporation (01880) fell more than 3%, as of the press release, it fell by 3.83%, to HK$47.7, with a turnover of HK$29.2555 million. Morgan Stanley released a research report stating that in 2024, Hainan is the main factor dragging down the Chinese tourism retail market, with offline duty-free shop sales decreasing by 29% year-on-year to 30.9 billion RMB. Due to the low base, and possibly more discounts provided by China Tourism Group Duty Free Corporation, the year-on-year decline in sales of Hainan's offline duty-free shops narrowed to 5% in December 2024, with the impact possibly weakening in 2025. The bank believes that the recovery of China Tourism Group Duty Free Corporation's port business is on track, so it slightly lowered China Tourism Group Duty Free Corporation's revenue and net profit forecasts by 2% for the previous year. For 2025 and 2026, the bank has lowered revenue forecasts by 2% each, net profit forecasts by -7%/-4%, reflecting the impact of increased port sales mix and more promotional activities.