HK Stock Market Move | China Tourism Group Duty Free Corporation (01880) rose more than 4% in the afternoon, and Tianjin's urban duty-free shops are expected to officially open by the end of the year. China Duty Free Hainan sales are expected to rebound.

China Tourism Group Duty Free Corporation (01880) rose more than 4% in the afternoon, as of the time of writing, it was up 3.62% to 55.8 Hong Kong dollars, with a turnover of 161 million Hong Kong dollars. On the news front, according to Tianjin, China Tourism Group's first in-city duty-free store in Tianjin is located on the first floor of the R&F Isetan in the southeast corner commercial area, with a theme of "Shopping Museum" covering an area of 1105.5 square meters, offering 9 major categories of travel electronics, perfumes, cosmetics, etc. Next week, the first in-city duty-free store in Tianjin will officially debut in a market-style manner. At the end of this month, the store will officially undergo renovation work, with an estimated construction period of 100 days. After customs inspection and acceptance, it is expected to officially start operations within the year. Orient also pointed out that the CMTC Tianjin International Cruise Homeport Outbound Duty-Free Store will open in July, featuring core categories including alcohol, perfumes, cosmetics, boutique goods, and specialty foods. The in-city duty-free store in Tianjin is also in the final preparation stage and is expected to start operations by the end of 2025. In response to the national call for "Chinese brands going global," it aims to create a region for Chinese quality products, time-honored brands, and intangible cultural heritage with taxes. In addition, referring to the Hainan Customs data, the sales at Hainan's outlying islands duty-free shops in Q1 2025 were 113.1 billion yuan, a decrease of 11.4%. We expect a similar decline in CMTC's sales in Hainan. However, the sales amount in January-May was 152.9 billion yuan, a decrease of 9.6%, and the decline narrowed. We expect that CMTC's sales in Hainan in Q2 2025 will slightly rebound.