Investment Rating - The report maintains a "Recommended" rating for China Duty Free Group Co., Ltd. (601888.SH) [1][7] Core Views - The company's performance is under pressure in the short term due to weak demand in the duty-free sales market, particularly in offshore duty-free shopping, while there is potential for recovery in port channels and expansion of city stores [1][7] - The domestic tourism market is showing a steady recovery, with a 14.3% year-on-year increase in domestic tourist numbers and a 19% increase in spending, but the appeal of offshore duty-free shopping has declined, leading to a 29.9% drop in monitored offshore duty-free shopping amounts [5][6] - The company is expected to benefit from the implementation of new city duty-free policies starting October 1, 2024, which will enhance its competitive position in the market [6][7] Summary by Sections Company Overview - China Duty Free Group Co., Ltd. was established on March 28, 2008, and has become the largest travel retail operator globally, focusing on providing high-quality duty-free and taxable goods to domestic and international travelers [2] Financial Performance - In the first half of 2024, the company achieved revenue of 31.265 billion yuan, a year-on-year decrease of 12.81%, and a net profit attributable to shareholders of 3.283 billion yuan, down 15.07% [5] - The second quarter of 2024 saw revenue of 12.458 billion yuan, a decline of 17.44%, and a net profit of 976 million yuan, down 37.6% [5] Market Dynamics - The offshore duty-free business is experiencing sluggish growth, with a significant drop in consumer purchasing intent, leading to a decrease in sales from Sanya's city duty-free stores [5][6] - Port duty-free channels are recovering rapidly, with a 70.9% year-on-year increase in checked-in and out personnel, although recovery is still below pre-pandemic levels [5][6] Profitability and Cost Management - The company has improved its gross margin to 33.53%, up 2.92 percentage points year-on-year, through product structure optimization and discount management [6] - Sales expense ratio increased by 2.91 percentage points to 14.83%, while net profit margin slightly rose to 11.67% [6] Future Outlook - The introduction of city duty-free policies is expected to expand the consumer market, with the company positioned to benefit from this change [6][7] - The company has introduced approximately 50 new brands in Hainan, enhancing its appeal to consumers [6]

Investment Rating - The report maintains a "Recommended" investment rating for the company, indicating an expectation of stock performance that is better than the market by 10% to 20% over the next six months [3][12]. Core Views - The company's revenue for the first half of 2024 was 31.265 billion yuan, a decrease of 12.81% year-on-year, with a net profit attributable to shareholders of 3.283 billion yuan, down 15.07% [6]. - The report highlights that the company's business structure and profitability have changed significantly since 2019, influenced by policy changes and the recovery of inbound tourism [6][10]. - The company is expected to benefit from the recent introduction of city duty-free policies, which will allow it to operate additional duty-free stores starting October 1, 2024 [10]. Summary by Sections Financial Performance - The company's gross margin improved to 33.53%, up 2.92 percentage points, while the net profit margin increased to 11.67%, up 0.25 percentage points [6]. - Sales expenses rose by 8.51% to 4.638 billion yuan, with a sales expense ratio of 14.83%, an increase of 2.91 percentage points [6]. - The company reported a significant decline in revenue from its Hainan operations, with sales of duty-free goods contributing 21.670 billion yuan and taxable goods contributing 9.158 billion yuan [6]. Market Dynamics - The report notes a recovery in international passenger traffic at Shanghai Airport, reaching 89% of 2019 levels, while Hainan's airports showed mixed performance [9]. - The number of visitors and their purchasing conversion rates are closely linked to the company's sales performance, with domestic tourism and inbound travel markets showing strong activity [7][9]. Future Outlook - The company is projected to achieve net profits of 6.41 billion yuan, 8.27 billion yuan, and 10.05 billion yuan for the years 2024 to 2026, respectively [10]. - The report emphasizes the company's competitive advantages in the global travel retail market and its ongoing efforts to optimize supply chains and improve operational efficiency [10].

Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Insights - The company reported a revenue of 31.27 billion and a net profit of 3.28 billion for the first half of 2024, reflecting a year-on-year decline of 13% and 15% respectively [1]. - The company's Hainan flagship project in Sanya experienced a revenue drop of 29%, which is slightly better than the overall Hainan duty-free market decline of 30%, indicating a competitive advantage [1]. - The second quarter saw a revenue of 12.46 billion, down 17% year-on-year, with a non-recurring net profit of 0.98 billion, down 38% year-on-year [1]. - The gross margin improved to 23%, up 0.8 percentage points year-on-year, while the net margin decreased to 7.8%, down 2.5 percentage points year-on-year due to minority interest losses and increased tax rates [1]. - The introduction of new policies for city duty-free shops is expected to create a market increment of 10-30 billion, providing new growth opportunities for the company [1]. - The profit forecasts for 2024-2026 have been adjusted to 6.26 billion, 7.65 billion, and 9.11 billion respectively, with corresponding PE ratios of 20X, 16X, and 14X [1]. Financial Performance Summary - For 1H24, the company achieved a revenue of 31.27 billion, a decrease of 13% year-on-year, and a net profit of 3.28 billion, down 15% year-on-year [1]. - The second quarter's revenue was 12.46 billion, reflecting a year-on-year decline of 17%, while the non-recurring net profit was 0.98 billion, down 38% year-on-year [1]. - The gross margin for Q2 was 23%, an increase of 0.8 percentage points year-on-year, while the net margin was 7.8%, a decrease of 2.5 percentage points year-on-year [1]. - The company’s financial forecasts for 2024-2026 indicate a revenue growth rate of -8.11%, 15.00%, and 10.00% respectively [2].

Investment Rating - The investment rating for the company is "Outperform the Market" [2][12][10] Core Views - The company's revenue and net profit attributable to shareholders were under pressure in the first half of 2024, with revenue at 31.27 billion yuan, down 12.8%, and net profit at 3.28 billion yuan, down 15.1% [1][5] - The performance in Hainan's duty-free sector remains under pressure, while there is an improvement in the profitability of airport duty-free operations [1][7] - The company is expected to benefit from new policies regarding city duty-free shops, which will be implemented on October 1, 2024, potentially enhancing revenue streams [1][10] Summary by Sections Financial Performance - In the first half of 2024, the company achieved revenue of 31.27 billion yuan, a decrease of 12.8%, and a net profit of 3.28 billion yuan, down 15.1% [1][5] - The second quarter saw revenue of 12.46 billion yuan, down 17.4%, and a net profit of 976 million yuan, down 37.6% [1][5] - Hainan's duty-free sales were significantly impacted, with a 29.9% decline in sales to 18.46 billion yuan and a 10% drop in visitor numbers [1][7] Profitability Metrics - The company's gross margin improved, with sales expense ratio increasing by 2.9 percentage points, while financial expense ratio decreased by 0.5 percentage points [1][7] - The net profit margin for the first half was down 0.28 percentage points, with a significant decline in Q2 due to Hainan's performance [1][7] Future Outlook - The company is focusing on enhancing its duty-free product offerings and operational efficiency to adapt to changing consumer trends [1][10] - The new city duty-free policy is expected to provide additional revenue opportunities, with plans to convert existing stores to cater to outbound travelers [1][10] - Revenue growth estimates for Hainan have been revised downwards for 2024-2026, reflecting ongoing challenges in the market [1][10]

Investment Rating - The report maintains a "Recommended" rating for the company [2][3]. Core Views - The company reported a revenue of 31.265 billion yuan in 1H24, a year-on-year decrease of 12.81%, with a net profit attributable to shareholders of 3.866 billion yuan, down 1.83% year-on-year [1]. - The gross margin improved to 33.53%, up 2.92 percentage points, driven by an optimized product sales structure and better promotional management [1]. - The company is experiencing a significant recovery in its inbound duty-free business, with revenue from domestic duty-free stores growing over 100% year-on-year [2]. Summary by Sections Financial Performance - In 1H24, the company achieved a revenue of 31.265 billion yuan, with a net profit of 3.866 billion yuan and a non-recurring net profit of 3.283 billion yuan, reflecting a year-on-year decrease of 15.07% [1]. - The second quarter of 2024 saw a revenue of 12.458 billion yuan, down 17.44% year-on-year, but net profit increased by 37.60% to 976 million yuan [1]. Product and Sales Strategy - The company optimized its product structure, increasing the proportion of high-margin products, which contributed to the improvement in gross margin [1]. - The sales expense ratio increased to 14.83%, attributed to rising leasing costs as new duty-free ports opened [1]. Regional Performance - The company's international operations reported a revenue of 22.549 billion yuan, down 10.98% year-on-year, while the Sanya duty-free store revenue fell by 28.97% to 11.986 billion yuan [2]. - The Shanghai duty-free store, however, reported a revenue increase of 3.70% to 8.500 billion yuan, with net profit soaring by 3599.41% to 310 million yuan, driven by recovering passenger flow and reduced airport rents [2]. Future Outlook - New rental agreements are expected to lower airport rental costs, and the recovery of passenger flow is anticipated to boost duty-free revenue [2]. - The company forecasts net profits of 6.342 billion yuan, 8.235 billion yuan, and 10.309 billion yuan for 2024, 2025, and 2026, respectively, with corresponding PE ratios of 20x, 15x, and 12x [2][3].

Investment Rating - The investment rating for the company is "Accumulate" with a target price of 85.20 CNY, down from the previous forecast of 88.29 CNY [2]. Core Views - The profitability of airport duty-free operations has significantly improved, while the Hainan offshore duty-free market remains under pressure. The new city duty-free policy is expected to bring performance elasticity in the medium to long term [2]. Financial Performance Summary - For the first half of 2024, the company reported revenue of 31.265 billion CNY, a year-on-year decrease of 12.81%, and a net profit attributable to shareholders of 3.283 billion CNY, down 15.07% year-on-year. The second quarter of 2024 saw revenue of 12.558 billion CNY, a decline of 17.44% year-on-year, and a net profit of 976 million CNY, down 37.60% year-on-year [7]. - The gross profit margin for Q2 2024 was 33.87%, an increase of 1.03 percentage points year-on-year and 0.55 percentage points quarter-on-quarter. However, the profit margin was pressured by rising costs, particularly in Hainan [7]. - The company’s international passenger flow recovery and reduced commission rates have led to a substantial improvement in airport duty-free profitability, with a 3178% year-on-year increase in operating profit for the Shanghai airport duty-free operations in H1 2024 [7]. Financial Forecast - The company’s projected earnings per share (EPS) for 2024, 2025, and 2026 are 2.84 CNY, 3.20 CNY, and 3.58 CNY respectively, reflecting downward adjustments from previous estimates [7]. - The financial summary indicates a projected revenue increase from 69.45 billion CNY in 2024 to 83.25 billion CNY in 2026, with net profit expected to rise from 5.885 billion CNY in 2024 to 7.404 billion CNY in 2026 [8][10].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a decline in revenue and net profit for H1 2024, with total revenue at 31.265 billion yuan, down 13% year-on-year, and net profit attributable to shareholders at 3.283 billion yuan, down 15% year-on-year [3] - The company's Q2 performance met previous forecasts, with a gross margin increase driven by a higher proportion of duty-free and premium products [3] - The new city duty-free store policy is expected to benefit the company, as it is positioned to take advantage of market expansion [3] - Long-term outlook remains positive due to the company's strong market position and expected recovery in outbound tourism [3] Financial Performance Summary - Total revenue (in million yuan): 54,433 (2022A), 67,540 (2023A), 60,934 (2024E) with a year-on-year change of -19.57%, +24.08%, and -9.78% respectively [2] - Net profit attributable to shareholders (in million yuan): 5,030 (2022A), 6,714 (2023A), 6,154 (2024E) with a year-on-year change of -47.89%, +33.46%, and -8.34% respectively [2] - Latest diluted EPS (in yuan/share): 2.43 (2022A), 3.25 (2023A), 2.97 (2024E) [2] - P/E ratios: 25.09 (2022A), 18.80 (2023A), 20.51 (2024E) [2] Market Data - Closing price: 61.01 yuan [5] - Market capitalization: 126.221 billion yuan [5] - P/B ratio: 2.34 [5] Operational Insights - The company’s core operational entities reported varying revenue performances, with Sanya city stores and Haikou duty-free city experiencing declines, while Dayang's growth remained stable [3] - The H1 sales in Hainan's duty-free market were reported at 18.5 billion yuan, down 30% year-on-year [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [7] Core Views - The company adheres to a high-quality development approach, maintaining stable profitability despite market pressures [11] - The sales in Hainan's duty-free market faced challenges, with a significant decline in sales figures [11] - The company is expected to benefit from new policies regarding city duty-free shops, positioning it as a core beneficiary [11] - Revenue and profit forecasts for 2024-2026 indicate a recovery trend, with projected revenues of 628.8 billion, 689.8 billion, and 761.8 billion respectively [11] Financial Performance Summary - For the first half of 2024, the company reported revenue of 31.26 billion yuan, a year-on-year decrease of 12.8%, and a net profit of 3.28 billion yuan, down 15.1% [11] - The gross margin for the first half of 2024 was 33.53%, an increase of 2.9 percentage points year-on-year, attributed to improved sales structure [11] - The company’s net profit margin for the first half of 2024 was 11.7%, reflecting a slight increase despite sales pressures [11] - The company’s earnings per share (EPS) for 2024-2026 are projected to be 3.1, 3.6, and 4.1 yuan respectively [11] Market Context - The Hainan duty-free shopping market saw a 29.9% decline in shopping amounts in the first half of 2024, with a corresponding drop in the number of shoppers [11] - The company’s sales in Sanya's duty-free stores also experienced significant declines, with revenue down 29.0% [11] - The new city duty-free policy is expected to create additional growth opportunities for the company starting from October 1, 2024 [11]

Revenue and Growth - For the first half of 2024, the company reported a significant increase in domestic duty-free store revenue, with a year-on-year growth exceeding 100%[10] - Total revenue for the six months ended June 30, 2024, was RMB 312.65 billion, a decrease of 12.81% compared to RMB 358.58 billion for the same period in 2023[18] - In the first half of 2024, domestic tourism expenditure reached RMB 2.73 trillion, a year-on-year increase of 19.0%[15] - The number of domestic tourists in the first half of 2024 was 2.725 billion, representing a growth of 14.3% year-on-year[15] - Hainan's offshore duty-free shopping sales amounted to RMB 18.46 billion, a decline of 29.9% year-on-year[16] - For the six months ended June 30, 2024, external customer revenue reached RMB 31,136,251 thousand in the retail segment and RMB 128,747 thousand in the property segment, totaling RMB 31,264,998 thousand[58] - The company reported a revenue of HKD 1.2 billion for the six months ending June 30, 2024, representing a year-on-year increase of 15%[118] Brand and Product Expansion - The company successfully introduced approximately 50 new brands in the Hainan region, enhancing its brand portfolio with luxury names such as Prada and Gucci[10] - The company is actively expanding its product categories, introducing brands in various sectors including home goods and health products[12] - The company has launched a Paris Olympic licensed product store at Haikou Meilan International Airport, tapping into new consumer trends[10] - The company is actively expanding its product lines and improving procurement negotiation capabilities to adapt to market changes and enhance competitiveness[26] Strategic Initiatives and Partnerships - The company secured operating rights for duty-free stores at key locations, including Guangzhou Baiyun International Airport and Kunming Changshui International Airport, expanding its domestic channel presence[11] - The company has established a strategic cooperation agreement with the Jinjiang Municipal Government to promote "Guochao" (national trend) brands in overseas markets[11] - The company opened new duty-free stores in international locations, including the Aida Magic cruise ship and Changi Airport in Singapore, as part of its overseas expansion strategy[11] - The company is focused on optimizing its business layout both domestically and internationally, aligning with the "Belt and Road" national strategy[11] Financial Performance - The company's main business gross profit margin increased to 32.94%, up by 2.62 percentage points year-on-year[12] - Gross profit fell by 4.75% year-on-year to RMB 10.24 billion for the six months ending June 30, 2024, compared to RMB 10.75 billion for the same period in 2023[19] - Operating profit decreased by 9.43% year-on-year to RMB 4.65 billion for the six months ending June 30, 2024, down from RMB 5.13 billion for the same period in 2023[20] - Profit for the period declined by 11.36% year-on-year to RMB 3.67 billion for the six months ending June 30, 2024, from RMB 4.14 billion for the same period in 2023[20] - The group plans to focus on strengthening its duty-free business in Hainan and enhancing its online and offline business development in the second half of 2024[24] Cost Management and Efficiency - The group's sales cost decreased by 16.26% year-on-year to RMB 21.02 billion for the six months ending June 30, 2024, from RMB 25.10 billion for the same period in 2023[19] - The company is committed to improving profitability and operational efficiency in its duty-free business, reflecting a robust recovery in the sector[11] - The company is focusing on enhancing its core business capabilities and fine management to strengthen its competitive edge in the increasingly competitive duty-free market[25] Cash Flow and Financial Position - Cash and cash equivalents increased to RMB 32.15 billion as of June 30, 2024, from RMB 31.75 billion as of December 31, 2023[22] - The group's total debt decreased slightly to RMB 5.48 billion as of June 30, 2024, from RMB 5.53 billion as of December 31, 2023[23] - The equity attributable to shareholders increased by 0.04% to RMB 53.67 billion as of June 30, 2024, from RMB 53.65 billion as of December 31, 2023[20] - The company reported a decrease in inventory by RMB 2,042,395 thousand, compared to a decrease of RMB 3,472,486 thousand in the same period last year[49] Corporate Governance and Management - The company has adopted corporate governance practices in compliance with the Hong Kong Listing Rules, ensuring the separation of roles between the Chairman and the CEO[35] - The Audit and Risk Management Committee reviewed the interim report for the six months ending June 30, 2024, confirming compliance with applicable accounting standards and legal regulations[37] - The company emphasizes the importance of good corporate governance to enhance management and protect shareholder interests[35] Future Outlook and Strategic Plans - The company provided a future outlook projecting a revenue growth of 10% for the next fiscal year, driven by market expansion strategies[118] - New product launches are expected to contribute an additional HKD 300 million in revenue, with a focus on enhancing customer experience[118] - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of HKD 500 million allocated for potential deals[118] - The company plans to implement new marketing strategies that are expected to increase customer engagement by 25%[118]

中国旅游集团中免股份有限公司 董事、监事和高级管理人员所持公司股份 及其变动管理制度 （2024 年 8 月修订） 第一章 总则 公司董事、监事和高级管理人员就其所持股份变动相关事项作出承 诺的，应当严格遵守。 公司董事、监事和高级管理人员不得通过任何方式或者安排规避法 律、行政法规、部门规章、规范性文件及公司证券上市地证券交易 所的其他规定。 第三条 公司董事、监事和高级管理人员所持本公司股份，是指登记在其名 下和利用他人账户持有的所有本公司股份及其衍生品种。 公司董事、监事和高级管理人员从事融资融券交易的，其所持本公 司股份还包括记载在其信用账户内的本公司股份及其衍生品种。 1 公司董事、监事、高级管理人员不得从事以本公司股票为标的证券 的融资融券交易，不得开展以本公司股票合约标的物的衍生品交易。 公司董事、监事和高级管理人员通过沪港通买卖本公司股票的，还 应当符合境内外有关沪港通相关法律、行政法规、部门规章、规范 性文件及公司证券上市地证券交易所的规定。 第一条 为加强对中国旅游集团中免股份有限公司（以下简称"公司"、"本公 司"）董事、监事和高级管理人员所持公司股份及其变动的管理，保 护投资者合法权益 ...