CTG DUTY-FREE Shares Drop Over 4% Again; Analysts See Limited Downside for Hainan Duty-Free Sales

Stock News03-09

CTG DUTY-FREE (01880) fell more than 4% again, bringing its cumulative decline since the holiday period to nearly 34%. At the time of writing, the stock was down 4.34% to HK$70.5, with a turnover of HK$65.63 million. According to statistics from Haikou Customs, duty-free shopping in Hainan during the Spring Festival holiday reached 2.72 billion yuan, a 30.8% increase compared to the previous year's holiday period. The number of shoppers reached 325,000, a year-on-year increase of 35.4%. Nanjing Securities noted that while the Hainan offshore duty-free market experienced a consumption peak during the holiday, the growth in per capita spending was lower than expected. Guojin Securities indicated that overall duty-free sales during the holiday period remained stable. The stock price is under temporary pressure due to data falling short of expectations, but this is not indicative of a trend reversal. In the short term, the effects of reduced discounts and currency appreciation have not yet been reflected in financial reports. Looking ahead, the recovery in high-end consumption and the return of tourism to Japan remain valid, suggesting potential for future growth. Galaxy Securities also stated that the room for further decline in Hainan's offshore duty-free sales is limited. Coupled with ongoing optimization of downtown duty-free policies, the industry is expected to experience both recovery and new growth momentum.

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