Bank of China Securities: Maintains a "buy" rating on China Duty Free, optimistic about the recovery of the Hainan market and overseas expansion.

The report from China CITIC Securities pointed out that China CFDG's performance in Q4 of 25 significantly rebounded, and it is optimistic about the recovery of the Hainan market and overseas expansion. In 25, the company achieved revenue of 53.694 billion yuan, a year-on-year decrease of 4.92%, and a net profit attributable to the mother of 3.586 billion yuan, a year-on-year decrease of 15.96%. The operating conditions in Q4 of 25 have significantly improved, and the non-net profit attributable to the mother has achieved high growth. The orderly progress of construction of various plots in Haikou International Duty-Free City and Phase 2, Plot 2 of Sanya International Duty-Free City, as the company's self-operated projects gradually take shape, it is expected to fully benefit from the high prosperity of the Hainan market and accelerate performance release under high operating leverage. The company acquired the equity of DFS Greater China, achieving a historic breakthrough in overseas business. In the medium to long term, it is recommended to pay attention to the performance recovery in the continuously prosperous Hainan market and the performance increase brought by overseas expansion. It is also optimistic about the company's leading position in various channels and its perfect layout, maintaining a "buy" rating.