1月19日，中国中免宣布，其全资孙公司中免国际与DFS Venture Singapore(Pte) Limited（简称"DFS新 加坡"）、DFS Group Limited（简称"DFS香港"）签署《框架协议》，计划以现金方式收购DFS大中华 区旅游零售业务相关股权及资产，交易金额不超过3.95亿美元（约人民币27.5亿元），资金来源为中免 国际自有资金。 受消费需求走弱影响，公司经营持续承压，2025年前三季度业绩仍在下跌。截至2025年9月30日，公司 前三季度实现营业总收入398.62亿元，同比下降7.34%；归母净利润30.52亿元，同比下滑22.13%。 公开信息显示，中国中免的核心业务以免税零售为主，涵盖烟酒、香化、服饰等多品类商品的批发与零 售，同时涉足免税商业综合体投资开发业务。 早年间，中国中免便以香港为起点试探海外市场，通过资产收购快速切入核心商圈。公司曾收购香港华 懋集团旗下免税零售资产，将门店布局延伸至香港核心地段。此外，中国中免还以轻资产与收购结合模 式拓展东南亚及东亚市场，在柬埔寨收购开设免税店，与丽星、歌诗达邮轮合作运营免税店，亦联合企 业获香港、澳门国际机场免税经营权。 ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [6] Core Views - The acquisition of DFS Cotai Limitada and related assets is expected to enhance the company's position in the high-end tourism retail market in Hong Kong and Macau, allowing for better integration of quality retail networks and strengthening core competitiveness [1][4] - The transaction is valued at a maximum of USD 3.95 billion, with a total consideration of up to HKD 9.24 billion through the issuance of new H shares to LVMH and the Miller family trust [1][4] - The acquisition is anticipated to improve operational efficiency by leveraging DFS's established brand and membership system, while also facilitating the export of domestic products through the Hong Kong and Macau markets [4] Financial Summary - The total valuation of nine DFS stores in the Macau region is approximately RMB 31.34 billion (around USD 4.41 billion), with projected revenues of RMB 41.49 billion and RMB 27.54 billion for the years 2024 and 2025 respectively [3] - The net profit for the DFS stores in the Macau region is expected to be RMB 1.28 billion and RMB 1.33 billion for the same periods, with corresponding PE ratios of 25X and 23X [3] - The company's cash reserves as of Q3 2025 stand at RMB 319.69 billion, indicating a strong liquidity position [3] Profit Forecast and Valuation - The company's net profit forecasts for 2025, 2026, and 2027 have been adjusted upwards to RMB 39.60 billion, RMB 52.41 billion, and RMB 61.83 billion respectively, reflecting increases of 8%, 10%, and 10% [5] - The target price for A-shares has been raised to RMB 115.75 and for H-shares to HKD 104.36, corresponding to PE ratios of 46X and 38X for 2026 [5] - The company is expected to maintain a consistent growth trajectory with projected revenues increasing from RMB 55.10 billion in 2025 to RMB 67.51 billion in 2027 [10]

Core Viewpoint - China Duty Free Group (CDFG) has announced an agreement to acquire DFS Group's travel retail business in Hong Kong and Macau, along with intangible assets in Greater China, aiming to enhance its service network and international business expansion [1][2] Group 1: Acquisition Details - The acquisition is expected to be completed in approximately two months, pending customary closing conditions [1] - LVMH Group and Robert Miller's family will participate in CDFG's capital increase by subscribing to newly issued H-shares in Hong Kong, with the subscription amount corresponding to part of the sale price [1] Group 2: Strategic Cooperation - CDFG and LVMH Group have signed a strategic cooperation memorandum to establish partnerships in retail areas where their strategies align [1] - The collaboration aims to leverage each party's strengths to deepen cooperation in Greater China, focusing on product sales, store openings, brand promotion, cultural exchange, tourism services, and customer experience [1] Group 3: Management Perspective - CDFG's General Manager, Chang Zhujun, emphasized that the transaction will expand CDFG's service network, enhance the retail economy in Hong Kong and Macau, and support high-quality development in the region [2] - The acquisition is part of CDFG's strategy to accelerate international business layout and implement the Guangdong-Hong Kong-Macau Greater Bay Area strategy [2]

Core Insights - The main focus of the news is on the significant inflow of capital into various stocks, highlighting the top 20 stocks with the highest capital inflow as of January 20, with specific amounts listed for each company [1][2][3] Group 1: Stock Performance - China Power Construction saw a capital inflow of 690 million yuan with a price increase of 6.85% [2] - Shanghai Electric experienced a capital inflow of 624 million yuan and a price increase of 8.22% [2] - Contemporary Amperex Technology reported a capital inflow of 509 million yuan with a modest price increase of 0.34% [2] - China Duty Free Group had a capital inflow of 460 million yuan and a price increase of 2.74% [2] - Sanzi Gaoke recorded a capital inflow of 441 million yuan with a price increase of 6.1% [2] Group 2: Industry Insights - The engineering sector, represented by China Power Construction, is showing strong investor interest with significant capital inflow [2] - The electric power industry, highlighted by Shanghai Electric, is also attracting substantial investments [2] - The battery industry, represented by Contemporary Amperex Technology, is experiencing steady capital inflow despite a small price increase [2] - The tourism and liquor sector, represented by China Duty Free Group, is seeing positive capital movement [2] - The automotive parts sector, represented by Sanzi Gaoke, is gaining traction with notable capital inflow [2]

高盛上周举办了一场投资者电话会议，与一位旅游零售及免税专家进行交谈，该专家在海南免税业务发 展与营运方面拥有多年经验。展望2026年，专家对海南免税销售增长持审慎乐观态度。该行预计中国中 免将维持其70%至80%市场份额，并认为未来2至3年内不太可能出现新的免税市场进入者；又认为独立 的关税制度将有助进口外国产品，并随着时间推移吸引更多投资，但相关物流和海关功能需时完善。高 盛将重点关注中免集团即将发布2024年第四季初步业绩中的利润率趋势，以评估其对最终盈利的影响。 ...

Core Viewpoint - The company's acquisition of DFS stores and related assets in the Hong Kong and Macau regions will rapidly expand its retail presence locally, while the partnership with LVMH and subsequent H-share issuance will strengthen their collaboration, allowing both retailers and brands to leverage complementary advantages, further consolidating China Duty Free Group's position in the global travel retail market. Post-issuance, China Tourism Group will maintain a solid controlling stake, supporting its long-term international strategy [1]. Group 1: Transaction Overview - The company announced that its wholly-owned subsidiary, China Duty Free International, will acquire DFS's Greater China travel retail business for up to $395 million in cash [2]. - The acquisition includes nine DFS stores in Hong Kong and Macau, as well as related intangible assets in Greater China [3]. - The final price of the transaction will be determined based on an agreed price adjustment mechanism [6]. Group 2: Strategic Partnerships - A strategic cooperation memorandum was signed with LVMH to establish a partnership in the retail sector, aligning with LVMH's current business model [7]. - The collaboration is expected to enhance LVMH's brand presence in China Duty Free's channels, particularly benefiting from high-quality customer traffic in duty-free zones [4]. Group 3: H-Share Issuance - The company will issue up to 11,967,500 H-shares at a price of HKD 77.21 per share, which represents less than 0.58% of the total share capital post-issuance [5]. - This issuance will bind the two parties at the equity level, with the potential to increase overseas retail revenue by over 4 billion yuan according to projected financials for 2024 [5][11]. - The issuance will not significantly dilute existing shares, maintaining China Tourism Group's controlling stake at 50.01% [9]. Group 4: Asset Valuation - The valuation of the nine DFS stores in Hong Kong and Macau is approximately RMB 313.38 million, translating to about $44.1 million, with an assessed appreciation rate of 1701.84% [10]. - The transaction is based on a total enterprise value of $400 million, subject to customary adjustments [10]. Group 5: Financial Projections - The company maintains its profit forecasts for 2025 to 2027 at RMB 4.149 billion, RMB 5.190 billion, and RMB 6.348 billion, respectively, with current share prices corresponding to P/E ratios of 47X, 37X, and 30X [5][11].

Core Viewpoint - China Duty Free Group Co., Ltd. (China Duty Free, 601888.SH, 01880.HK) announced the acquisition of DFS Group's travel retail business in Greater China for up to $395 million in cash, which includes 100% equity of DFS Cotai Limitada and related assets [1][2]. Group 1: Acquisition Details - The acquisition involves the purchase of equity and assets from DFS Venture Singapore and DFS Group Limited, including two stores in Hong Kong and Macau, as well as intangible assets like brand ownership and membership systems [1][2]. - Post-transaction, DFS Cotai Limitada will be fully owned by China Duty Free, enhancing its presence in the travel retail market [2]. Group 2: Strategic Partnerships - China Duty Free signed a share subscription agreement with Delphine SAS and Shoppers Holdings HK, planning to issue up to 7,330,100 and 4,637,400 H shares respectively at a price of HKD 77.21 per share [3]. - A strategic cooperation memorandum was also signed with LVMH to explore collaboration in retail sectors, aiming for mutual benefits in product sales, store openings, and brand promotion [3]. Group 3: Market Impact and Future Prospects - The acquisition is expected to strengthen China Duty Free's market position in Hong Kong and Macau, facilitating the export of domestic brands and enhancing the quality of retail experiences for tourists [4]. - The company anticipates that this transaction will lead to industry upgrades, improved service levels, and increased core competitiveness, aligning with its long-term development strategy [4]. - As of January 19, the stock prices of China Duty Free rose significantly, with A-shares up 5.62% and H-shares up 6.65% [4][5].

Core Viewpoint - The tourism and travel sector in the A-share market is experiencing a significant rally ahead of the 2026 Spring Festival, driven by strong demand and favorable policies [1][3]. Group 1: Market Performance - On January 19, 2026, the Wind tourism index surged by 2.5%, with major stocks like Dalian Shengya and Jiuhua Tourism hitting the daily limit [1]. - Key stocks such as Junting Hotel, Three Gorges Tourism, and China Duty Free saw gains exceeding 5%, while others like Jinjiang Hotel and Tianmu Lake rose over 4% [1]. - The overall market sentiment is bullish, indicating a preemptive warming of the Spring Festival market [1]. Group 2: Demand Drivers - The 2026 Spring Festival holiday, lasting from February 15 to 23, is expected to boost travel demand significantly, with a projected 5.39 billion passengers during the 40-day railway Spring Festival travel period, a 5% increase year-on-year [1][3]. - Domestic flight ticket bookings for the Spring Festival have surpassed 4.13 million, with a daily growth rate of approximately 21% [1][3]. - The trend of "reverse Spring Festival travel" is emerging, with a 35% year-on-year increase in ticket bookings for parents traveling to their children's workplaces for the holiday [1]. Group 3: Policy Support - Continuous policy support has been crucial for the recovery of the tourism sector, with multiple government initiatives aimed at boosting consumption and expanding travel services [3]. - In 2025, domestic tourism saw 4.998 billion trips, an 18% increase, with total spending reaching 4.85 trillion yuan, up 11.5% [3]. - The tourism market is expected to grow by 10% in 2025, driven by sustained leisure travel demand and experiential consumption [3]. Group 4: Institutional Investment - Institutional interest in the tourism sector is rising, with 25 out of 55 A-share tourism stocks receiving ratings from five or more institutions [3][4]. - The National Social Security Fund has invested heavily in eight tourism stocks, with a total market value of 3.094 billion yuan, favoring airlines and duty-free operators [4]. - Spring Airlines reported a 23.68% year-on-year increase in available ton-kilometers in December 2025, indicating strong operational recovery [4]. Group 5: Future Outlook - The upcoming Spring Festival is expected to lead to a peak in tourism consumption, benefiting related companies [4]. - Long-term prospects for the tourism sector are bolstered by the implementation of duty-free policies, recovery of international routes, and ongoing service consumption policies [4]. - Investors are advised to focus on leading companies in the duty-free, airline, and premium scenic spot sectors that are likely to benefit from consumption upgrades and policy advantages [4].

January 19, 2026 07:41 AM GMT Exhibit 3: Hainan duty-free sales - spending per shopper Spending per Hainan Duty Free Shopper (Rmb) Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 Oct-24 Jan-25 Apr-25 Jul-25 Oct-25 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 Source: Haikou Customs, Morgan Stanley Research Exhibit 2: Hainan duty-free sales since free-trade-port kicked start on Dec 18, 2025 China Tourism Group Duty Free | Asia Pacific Hainan DF sale ...

Group 1 - The retail sector experienced significant gains on January 20, with Shanghai Jiubai and Xinhua Department Store hitting the daily limit, while companies like Hebei Group and Huitong Energy rose over 6% [1] - Shanghai Jiubai's stock price increased by 10.01%, reaching a total market value of 56.40 billion, with a current price of 14.07 [2] - Xinhua Free Trade's stock rose by 6.38%, with a total amount of 8.77 billion and a market value of 49.68 billion, currently priced at 21.99 [2] Group 2 - The National Development and Reform Commission (NDRC) emphasized the importance of strengthening domestic circulation and expanding domestic demand, aligning with the trend of upgrading the country's demand structure [1] - The NDRC plans to develop a strategic implementation plan for expanding domestic demand from 2026 to 2030, focusing on creating new demand through new supply and providing strong innovation measures and resource guarantees [1]