CTG DUTY-FREE(SH:601888) Soochow Securities·2024-10-15 23:00Investment Rating - The report maintains a "Buy" rating for China Duty Free Group (601888) [1] Core Views - The company reported a decline in profits for the first three quarters of 2024, with expected revenue of 43.021 billion yuan, down 15% year-on-year, and a net profit of 3.92 billion yuan, down 25% year-on-year [3] - The sales in Hainan's duty-free market continue to face pressure, with a reported sales figure of 22.3 billion yuan from January to August 2024, down 31% year-on-year [3] - The implementation of the city duty-free store policy is expected to benefit the company, as it will allow domestic travelers to shop in city stores before departure [3] - The long-term outlook for the company remains positive due to its strong market position and potential benefits from the recovery of outbound tourism and the new city duty-free store policy [3] Financial Summary - For 2024, the company expects total revenue of 58.4 billion yuan, a decrease of 13.53% year-on-year, and a net profit of 5.519 billion yuan, a decrease of 17.79% year-on-year [2][3] - The earnings per share (EPS) for 2024 is projected to be 2.67 yuan, with a price-to-earnings (P/E) ratio of 25.87 [2] - The gross profit margin for the first three quarters is reported at 32.57%, with a slight decrease in the third quarter to 31.6% [3] Market Data - The closing price of the stock is 69.03 yuan, with a market capitalization of approximately 142.81 billion yuan [6] - The company has a price-to-book (P/B) ratio of 2.65 and a debt-to-asset ratio of 21.51% [7][6]