CTG DUTY-FREE(SH:601888)2024-09-02 09:31Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Insights - The company reported a revenue of 31.27 billion and a net profit of 3.28 billion for the first half of 2024, reflecting a year-on-year decline of 13% and 15% respectively [1]. - The company's Hainan flagship project in Sanya experienced a revenue drop of 29%, which is slightly better than the overall Hainan duty-free market decline of 30%, indicating a competitive advantage [1]. - The second quarter saw a revenue of 12.46 billion, down 17% year-on-year, with a non-recurring net profit of 0.98 billion, down 38% year-on-year [1]. - The gross margin improved to 23%, up 0.8 percentage points year-on-year, while the net margin decreased to 7.8%, down 2.5 percentage points year-on-year due to minority interest losses and increased tax rates [1]. - The introduction of new policies for city duty-free shops is expected to create a market increment of 10-30 billion, providing new growth opportunities for the company [1]. - The profit forecasts for 2024-2026 have been adjusted to 6.26 billion, 7.65 billion, and 9.11 billion respectively, with corresponding PE ratios of 20X, 16X, and 14X [1]. Financial Performance Summary - For 1H24, the company achieved a revenue of 31.27 billion, a decrease of 13% year-on-year, and a net profit of 3.28 billion, down 15% year-on-year [1]. - The second quarter's revenue was 12.46 billion, reflecting a year-on-year decline of 17%, while the non-recurring net profit was 0.98 billion, down 38% year-on-year [1]. - The gross margin for Q2 was 23%, an increase of 0.8 percentage points year-on-year, while the net margin was 7.8%, a decrease of 2.5 percentage points year-on-year [1]. - The company’s financial forecasts for 2024-2026 indicate a revenue growth rate of -8.11%, 15.00%, and 10.00% respectively [2].