UBS: China International Duty Free (01880.HK) second quarter profits lower than expected, maintains a "neutral" rating.

According to the Zhitong Finance and Economics APP, UBS released a research report stating that China International Travel Service Corporation Limited (01880, 601888.SH) preliminary results for the first half of the year show that revenue and profits will decline by 10% and 21% respectively compared to the same period last year, with a decrease in net profit margin of 1.3 percentage points to 9.2%. For the second quarter alone, China International Travel Service Corporation's revenue and profits fell by 8% and 32% respectively compared to the same period last year, with a net profit margin of 6%, lower than the bank's and market expectations. UBS expects investors to react negatively to China International Travel Service Corporation's preliminary results and maintains a "Neutral" rating with a target price of 64.5 Chinese yuan for A shares.