0646 GMT - China Tourism Group Duty Free is downgraded to hold from outperform by Daiwa, given that weak Chinese consumer sentiment remains a major share-price overhang. The company's airport duty-free sales recovered at a slower-than-expected pace in 1H despite robust traveler traffic, Daiwa analysts note. In 2H, the recovery in international travel and China's new downtown duty-free program could boost sales but are unlikely to offset the expected weak domestic duty-free sales in Hainan, the analysts say in a note. Daiwa cuts its 2024-2026 EPS forecasts for CTG Duty Free by 15%-17% on expectations of softer Hainan and airport duty-free sales. They also slash its H share target price to HK$45.00 from HK$80.00. Shares are last at HK$43.50. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
September 03, 2024 02:46 ET (06:46 GMT)
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