Chang Jiang Shang Bao·2026-02-24 23:43Core Viewpoint - China Duty Free Group (中国中免) experienced a significant stock decline, with its A and H shares dropping by over 10% on the first trading day after the Lunar New Year, resulting in a market value loss exceeding 190 billion yuan. This decline is attributed to the loss of certain operating rights at Shanghai Airport and increased competition in the duty-free market [2][3][8]. Group 1: Stock Performance - On February 24, China Duty Free Group's stock opened at 88 yuan per share, down 7.02%, and closed at 85.18 yuan, marking a 10% drop [5][6]. - The company's market capitalization in A-shares alone evaporated by 184.70 billion yuan in just one trading day [6]. - The stock also saw a similar decline in H-shares, with a drop exceeding 10% [7]. Group 2: Loss of Operating Rights - China Duty Free Group lost part of its exclusive operating rights at Shanghai Airport, which had been held for 26 years [3][12]. - The company confirmed that it is no longer the sole operator at the airport, as Wangfujing has acquired some operating rights, increasing competition [3][10]. Group 3: Competitive Landscape - The competitive environment for China Duty Free Group is intensifying, with new players entering the market, including Wangfujing and others, leading to a significant increase in the number of duty-free stores in Hainan from a few to over 20 [17]. - Despite still holding a large market share in China's duty-free sector, the company faces mounting pressure on its performance due to increased competition and changing consumer behavior [3][17]. Group 4: Financial Performance - The company's financial performance has been under pressure, with revenue and net profit expected to decline in 2024 by 16.38% and 36.44%, respectively [17]. - For the first three quarters of 2025, the company reported a revenue of 398.62 billion yuan and a net profit of 30.52 billion yuan, reflecting a year-on-year decline of 7.34% and 22.13% [17].