Zhi Tong Cai Jing·2026-01-21 07:09Core Viewpoint - Citigroup maintains a "Buy" rating for China Duty Free Group (601888) with a target price of HKD 100 for H-shares and CNY 106 for A-shares, anticipating strong sales in Hainan's duty-free market to act as a short-term catalyst [1] Group 1: Acquisition Details - China Duty Free Group announced the acquisition of DFS's retail business in Greater China for up to USD 395 million, which includes nine travel retail stores in Hong Kong and Macau along with intangible assets [1] - The company plans to issue up to approximately 11.9675 million new H-shares at HKD 77 per share to LVMH's Delphine SAS and the Miller family, representing about 0.57% of the total share capital, aiming to raise no more than HKD 924 million [1] Group 2: Strategic Implications - The acquisition is viewed as strategically significant for China Duty Free Group, helping to solidify its market leadership in Greater China, enhance retail capabilities, and promote domestic brands internationally [1] - The introduction of LVMH as a shareholder and strategic partner is expected to strengthen China Duty Free Group's advantages in luxury goods supply [1] Group 3: Financial Impact - The financial impact of the acquisition on China Duty Free Group is anticipated to be limited in the short term [1]