Shares of CTG DUTY-FREE (01880) are currently down more than 4%. At the time of writing, the stock had declined 3.77% to HK$49.8, with a turnover of HK$557.853 million.
Recent data from Haikou Customs shows that during the 2026 Dragon Boat Festival holiday, duty-free shopping in Hainan saw sales of RMB 202 million, with 34,700 shoppers and 159,000 purchased items. This represents year-over-year growth of 8.6%, 11.2%, and 1.9%, respectively, compared to the same period in 2025. However, the recovery in per capita spending has been slower than the recovery in traveler numbers.
An analysis from Industrial Securities noted that rising fuel costs have led to a reduction in flights and passenger traffic to and from Hainan, which is putting pressure on the performance of the island's duty-free sales. Looking ahead, supportive measures such as duty-free shopping vouchers and airline ticket subsidies are expected to help bolster sales.
Concurrently, the year-over-year decline in sales at Shanghai Airport is continuing to narrow, gradually beginning to contribute incremental revenue. This, combined with the full-quarter consolidation of DFS sales and the resumed shipments from the Shanghai warehouse of the 'Rising Sun' business, is expected to drive further revenue growth in the second quarter.
Comments