智通财经网·2025-11-12 03:34Core Viewpoint - Jianyin International has raised the target price for China Duty Free Group (01880) by 50% from HKD 60 to HKD 90, reflecting stronger profit growth momentum supported by favorable policies and better growth prospects. The rating remains "Outperform" [1] Group 1: Financial Performance - For Q3 2025, China Duty Free's net profit decreased by 29% year-on-year to RMB 452 million, which was below both Jianyin International's and market expectations [1] - Sales decline has narrowed compared to the previous quarter, with gross margin stabilizing around 32%-33% [1] - The expectation is that operational performance will gradually improve, supported by product and merchandise optimization, with gross margins likely to remain stable [1] Group 2: Market and Policy Environment - China has implemented several new duty-free policies aimed at boosting domestic consumption, enhancing tourism in Hainan Province, and expanding shopping channels for domestic and foreign consumers [1] - Preliminary data from Hainan Province indicates a positive response to these policies, suggesting that China Duty Free Group, as a leading duty-free retailer in the region, will be one of the main beneficiaries of the new policies [1]