CTG DUTY-FREE(SH:601888) Soochow Securities·2024-09-01 00:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a decline in revenue and net profit for H1 2024, with total revenue at 31.265 billion yuan, down 13% year-on-year, and net profit attributable to shareholders at 3.283 billion yuan, down 15% year-on-year [3] - The company's Q2 performance met previous forecasts, with a gross margin increase driven by a higher proportion of duty-free and premium products [3] - The new city duty-free store policy is expected to benefit the company, as it is positioned to take advantage of market expansion [3] - Long-term outlook remains positive due to the company's strong market position and expected recovery in outbound tourism [3] Financial Performance Summary - Total revenue (in million yuan): 54,433 (2022A), 67,540 (2023A), 60,934 (2024E) with a year-on-year change of -19.57%, +24.08%, and -9.78% respectively [2] - Net profit attributable to shareholders (in million yuan): 5,030 (2022A), 6,714 (2023A), 6,154 (2024E) with a year-on-year change of -47.89%, +33.46%, and -8.34% respectively [2] - Latest diluted EPS (in yuan/share): 2.43 (2022A), 3.25 (2023A), 2.97 (2024E) [2] - P/E ratios: 25.09 (2022A), 18.80 (2023A), 20.51 (2024E) [2] Market Data - Closing price: 61.01 yuan [5] - Market capitalization: 126.221 billion yuan [5] - P/B ratio: 2.34 [5] Operational Insights - The company’s core operational entities reported varying revenue performances, with Sanya city stores and Haikou duty-free city experiencing declines, while Dayang's growth remained stable [3] - The H1 sales in Hainan's duty-free market were reported at 18.5 billion yuan, down 30% year-on-year [3]