UBS Bullish on CTG DUTY-FREE (01880) as Hainan's New Duty-Free Policy Drives Strong Sales Growth

Stock News11-10

According to UBS research, data from Haikou Customs shows that from November 1 to 7, duty-free sales in Hainan reached 506 million yuan, a 35% year-on-year increase, with 73,000 shoppers, up 3.4% YoY. The figures significantly exceeded market expectations, which UBS attributes to the stimulus from Hainan's new duty-free shopping policy.

UBS remains optimistic about China's duty-free industry, citing two key factors: First, the new policies in Hainan and a low base effect are expected to drive positive growth in duty-free sales in Q4, with further acceleration likely in 2026–2027. CTG DUTY-FREE (01880) is poised to be the primary beneficiary. Second, airport duty-free sales are anticipated to recover steadily due to expanded retail areas and double-digit growth in international passenger traffic.

Additionally, policy easing, coupled with increased retail space and product variety, will serve as catalysts for the growth of China's duty-free market.

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