CTG DUTY-FREE (01880) saw its shares rise by 5.46% during the session, currently trading at HKD 71.50 with a turnover of HKD 490 million.
On December 18 this year, the Hainan Free Trade Port officially commenced island-wide customs closure operations. CITIC Securities noted that the implementation of Hainan’s customs closure is imminent, marking a new chapter in the region’s opening-up. The duty-free policy for off-island purchases remains a core pillar of Hainan’s consumer market. The inclusion of immediate pick-up for local residents and international tourists is expected to revitalize off-island duty-free sales, while streamlined policies for inbound and outbound duty-free shopping will address bottlenecks in downtown duty-free stores, ushering in a new five-year development phase for the industry.
Jefferies released a research report stating that CTG DUTY-FREE is actively planning for its 2026 development strategy to capitalize on opportunities arising from Hainan’s customs closure and further opening-up. Although consumer sentiment remains weak, a buoyant capital market may support luxury sales. Based on Q3 performance, the firm lowered its 2025 and 2026 net profit forecasts by 6% and 1%, respectively, but raised its 2027 forecast by 3%. Given expectations of stronger sales recovery in port duty-free operations from 2028 to 2035, Jefferies increased its H-share target price from HKD 56 to HKD 61.7 and its A-share target price from CNY 60 to CNY 69, maintaining a "Hold" rating.
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