CTG DUTY-FREE(SH:601888) 3 6 Ke·2026-01-07 05:59Core Insights - The article highlights the significant profit margins of duty-free stores in China, particularly emphasizing the 39.5% gross margin reported by China Duty Free Group for 2024, which is notably higher than the 24% gross margin of global retail giant Walmart for Q3 2025 [2] Group 1: Duty-Free Store Performance - Duty-free products are perceived as highly cost-effective due to the exemption from the "three taxes" (tariff, consumption tax, and value-added tax), allowing for substantial price reductions [1] - For example, a 100ml bottle of a luxury skincare product can be priced at over 4500 yuan in official stores but can drop to just over 3000 yuan in duty-free shops, showcasing the competitive pricing [1] Group 2: Financial Implications - Despite high gross margins, the net profit for duty-free stores is impacted by significant expenses, particularly rental fees, which accounted for 46.74% of total sales expenses for China Duty Free Group, amounting to 4.236 billion yuan [2] - The rental fees are comparable to the company's annual net profit, indicating that for every yuan of net profit, approximately one yuan is paid in "traffic fees" to locations like airports [2] - To optimize profitability, a new rental structure involving a "base rent + commission" model is being considered for future collaborations, such as the one with Shanghai Airport in 2026 [2]