HK Stock Market Move | China Tourism Group Duty Free Corporation (01880) surged more than 3%, the company is expected to achieve positive revenue growth in 2025, and its market share in Hainan is gradually increasing.

China Tourism Group Duty Free Corporation (01880) rose more than 3% during trading, with an increase of 2.85% at the time of writing, reaching 48.75 Hong Kong dollars, with a turnover of 676.826 million Hong Kong dollars. Citigroup released a research report stating that China Tourism Group Duty Free Corporation disclosed preliminary results, with a 16% year-on-year drop in revenue to 56.5 billion yuan last year, and a 37% drop in net profit to 4.2 billion yuan. This means that in the fourth quarter of last year, revenue dropped by 19% year-on-year to 13.5 billion yuan, net profit fell by 77% to 344 million yuan, and the net profit margin dropped to 2.6%. Due to the base effect in Hainan, the continuous recovery of outbound duty-free business, and the expansion of in-city duty-free shops, the bank expects the company to resume growth this year. UBS believes that China Tourism Group Duty Free Corporation is expected to achieve positive revenue growth by 2025. In terms of revenue expectations, the company's management expects that sales in Hainan in 2025 will remain stable, and airport sales are expected to achieve year-on-year positive growth. Currently, the company's inventory is within the normal range, adopting a "small batch + frequent" purchasing strategy. If more Korean duty-free operators stop cooperating with Chinese cross-border shoppers, it may prompt Chinese consumers to return, benefiting Chinese duty-free operators. In the field of Hainan duty-free business, in the next 3-5 years, it is highly likely that Hainan's current off-island duty-free shopping policy and the annual tax-free shopping limit of 100,000 yuan per person will continue. China Tourism Group Duty Free Corporation's market share in Hainan is gradually increasing, and Hainan's crackdown on cross-border shopping will continue.