Core Viewpoint - China Tourism Group Duty Free has agreed to acquire DFS's travel retail business in Greater China from LVMH and Robert Miller, enhancing its dominance in the market [1][2]. Group 1: Acquisition Details - The acquisition will be executed through China Duty Free International Ltd., granting CTG Duty-Free control over DFS retail stores in Hong Kong and Macao, excluding the City of Dreams store in Macao, along with intangible assets and intellectual properties for exclusive use in Greater China [2]. - The deal is expected to close within two months, contingent on customary closing conditions, with LVMH and the Miller family participating in a capital increase of CTG Duty-Free by subscribing to newly issued H-shares in Hong Kong [3]. Group 2: Strategic Cooperation - Following the transaction, DFS will continue its luxury travel retail operations globally, while CTG Duty-Free and LVMH have entered a memorandum of understanding to establish strategic cooperation in the retail sector [4]. - This collaboration aims to leverage the strengths of both companies, particularly in Greater China, with CTG Duty-Free operating nearly 200 duty-free stores across over 100 cities worldwide [5]. Group 3: Upcoming Projects - DFS Yalong Bay, the largest project by DFS, located in Sanya, Hainan, is set to be unveiled in phases starting later this year, covering over 1.38 million square feet and featuring more than 1,000 luxury brands [5][6]. - CTG Duty-Free is also set to gradually unveil a 2.1 million-square-foot duty-free retail complex in Sanya's Haitang Bay in partnership with Swire Properties [7].

Summary of China Tourism Group Duty Free Corp. Conference Call Company Overview - **Company Name**: China Tourism Group Duty Free Corp. (CTGDF) - **Ticker**: 601888.SS / 1880.HK - **Industry**: Duty-Free Retail - **Market Position**: Largest travel retail operator globally with over 80% market share in China [21][22] Key Points from the Conference Call New Duty-Free Concessions - CTGDF announced new duty-free concessions at Shanghai International Airport, securing rights for: - Terminal T2 & Satellite Hall S2 at Shanghai Pudong International Airport - Terminal T1 at Hongqiao International Airport - The operating rights for Terminal T1 & Satellite Hall S1 at Pudong will be transferred to Dufry starting January 1, 2026, with a phased term of 5+3 years [1][3] Rental Concession Terms - New airport rental concession terms are more favorable: - Pudong T2 & S2: Rmb3,090/m²/month - Hongqiao T1: Rmb2,827/m²/month - The fixed unit fee is slightly lower than the current term (approximately Rmb3,100/m²/month), and the commission rates are also reduced (Pudong T2 & S2: 8-24%; Hongqiao T1: 8-22%) compared to the current 18-36% [2] Joint Venture with Shanghai International Airport - CTGDF will establish a joint venture with Shanghai International Airport, owning 51% and allowing for continued operation of duty-free stores at the new terminals [3] Financial Implications - Sunrise Shanghai (including Pudong, Hongqiao & Online) contributed Rmb187 million to CTGDF's earnings in 1H25, approximately 7% of the group's net profit. - The impact of losing the operating rights at Pudong T1 & S1 is expected to be limited in the short term due to their smaller scale compared to T2 & S2 [4] Competitive Landscape - The introduction of foreign retailers at Shanghai airports may alter the competitive landscape, with potential implications for Beijing airport concessions in the future. - The focus will be on optimizing product offerings to enhance conversion ratios and ticket sizes [4] Strategic Focus - CTGDF aims to enhance its brand portfolio, merchandising, and shopping experience to drive sales and profitability in airport duty-free operations. - An incentive scheme has been agreed upon, including pro-rata refunds if per capita spending exceeds target values or if competitive new products are introduced [4] Financial Projections - **Sales Revenue**: Expected to decline from Rmb67,540 million in 2023 to Rmb53,495 million in 2025E, with a recovery to Rmb58,997 million in 2026E [9] - **Net Profit**: Projected to decrease from Rmb6,714 million in 2023 to Rmb4,198 million in 2025E, with a rebound to Rmb5,248 million in 2026E [9] - **Core EPS**: Expected to drop from Rmb3.245 in 2023 to Rmb2.029 in 2025E, recovering to Rmb2.537 in 2026E [9] Risks - Potential risks include unfavorable duty-free policies, increased competition from foreign operators, and a slowdown in passenger flows due to economic conditions or disruptive events [24][29] Investment Strategy - A Buy rating is maintained for CTGDF, supported by its dominant market position and structural growth potential in China's duty-free industry, particularly driven by rising onshore spending and consumption upgrades [22][27] Valuation - Target price for CTGDF-A is set at Rmb78, based on a DCF valuation with a WACC of 10.0% and a terminal growth rate of 4% [23][28]

Core Viewpoint - WEBUY GLOBAL LTD. has expanded its travel retail operations in Indonesia with the opening of a new outlet in Surabaya, following the successful launch in Jakarta, aiming to enhance its presence in key metropolitan areas [1][2][7]. Expansion and Growth - The Surabaya outlet, opened on November 28, 2026, is part of the company's strategy to support localized customer engagement and offline consultation alongside its digital travel platform [1][2]. - The Indonesia travel business has experienced significant growth, with total sales increasing by approximately 200% year-on-year, achieving the highest monthly sales in November 2025 [3]. Product Offering - The Surabaya outlet offers a variety of international travel products, including customized itineraries for China, Europe tours, and global travel packages tailored for leisure, family, and Muslim-friendly travel [4]. Brand Development - To enhance brand awareness in Indonesia, the company has appointed Paramitha Russady, a local public figure, as a brand ambassador [5]. Operational Strategy - The company's operational approach combines digital capabilities, localized community operations, and AI-enabled technology, which has been refined through its experience in Jakarta [6]. - The company plans to evaluate further expansion opportunities in other major Indonesian cities, such as Medan and Bandung, using a repeatable operating framework that integrates digital customer acquisition and technology-enabled tools [7]. Company Overview - WEBUY GLOBAL LTD. is a technology-driven platform focused on transforming social commerce and travel services across Southeast Asia, providing curated travel experiences and solutions for customers in Indonesia and beyond [8].

Core Insights - WH Smith's CEO Carl Cowling has offered to resign following an independent review that uncovered accounting failures in the company's North American operations [1] Group 1 - The independent review revealed significant accounting failures within WH Smith's North American segment [1] - The resignation of the CEO indicates a potential shift in leadership and strategy for the company [1] - The findings of the review may impact investor confidence and the company's market position [1]

Summary of China Tourism Group Duty Free Corp. Conference Call Company Overview - **Company Name**: China Tourism Group Duty Free Corp. (CTGDF) - **Ticker**: 601888.SS (A-shares), 1880.HK (H-shares) - **Market Position**: Largest travel retail operator globally with approximately 80% market share in China's duty-free industry [26][27] Key Industry Insights - **Favorable Duty-Free Policies**: New policies effective from November 1, 2025, aim to boost consumption and recapture overseas spending onshore. Key measures include: - Tax refund/exemption for domestic products - Expansion of product categories in duty-free stores - Support for online reservations and pick-up services at duty-free stores [2][9][11] - **Hainan Free Trade Port**: Expected to enhance growth prospects starting December 18, 2025, with independent customs operations and favorable policies [2][9] Financial Performance - **3Q25 Results**: - Revenue showed a sequential improvement with a year-over-year decline narrowing to -0.4% - Earnings decreased by 29% year-over-year primarily due to lower gross margins and increased SG&A expenses [1] - Gross Profit Margin (GPM) slightly declined to 29.8% due to a higher sales mix of lower-margin mobile phones [3] - **Sales Trends**: - Hainan offshore duty-free sales increased by 3.4% in September and 13.6% during the Golden Week (October 1-8) [1] - Anticipated positive growth trajectory into the peak season due to improved execution and recovery in outbound travel [1] Strategic Initiatives - **Margin Improvement**: Management aims to enhance margins through product mix optimization, store efficiency improvements, and cost reductions [3] - **Inventory Management**: Increased inventory levels in 3Q25 to prepare for the peak season, particularly in cosmetics, while maintaining healthy inventory levels [3] Shareholder Returns - **Dividend Announcement**: The company declared its first interim dividend of RMB 517 million, representing a 17% payout ratio based on 9M25 net profit, with plans to maintain a high payout ratio [1] Valuation and Recommendations - **Target Price**: DCF-based target price set at RMB 78.00, reflecting the long-term growth potential of the duty-free business [28] - **Investment Rating**: Buy rating maintained for CTGDF, supported by structural growth in the duty-free industry and expected benefits from favorable policies and market dynamics [27] Additional Insights - **Product Diversification**: The expansion of product categories in duty-free stores is expected to cater to varying consumer preferences and enhance sales [2][11] - **Operational Efficiency**: Focus on digitalization and cost control measures to improve overall operational efficiency and profitability [3] This summary encapsulates the critical insights and financial performance of China Tourism Group Duty Free Corp. as discussed in the conference call, highlighting the company's strategic initiatives and market outlook.

Core Insights - The CDFG Consumer White Paper highlights the recovery of the global duty-free and travel retail market, which reached $74.13 billion in 2024, marking a 3% year-on-year increase and recovering to 85.8% of its 2019 level [3] - China's market shows strong potential, with GDP growth supported by favorable policies and increased domestic demand, particularly driven by the optimization of duty-free policies and tourism growth [5] - CDFG has strengthened its market leadership with a 78.7% market share, leveraging its omnichannel strategy and supply chain advantages to achieve higher-quality development [6] Market Performance - The total user base of CDFG reached 104 million in 2024, reflecting a 26.1% year-on-year increase, with foreign users growing by 53.9% and their spending increasing by 84.5% [8] - CDFG's membership surpassed 45 million as of June 2025, with significant year-on-year growth and a stable month-on-month increase, indicating a solidified customer foundation across various segments [9] Customer Segmentation - CDFG's customer base is segmented into nine categories based on consumption preferences, age, and region, allowing for targeted marketing and product offerings [10][12] - Key segments include Self-Care Connoisseurs, HNW Luxury Lifestyle Connoisseurs, and Gen Z Trend-Driven Stylists, each with distinct consumption behaviors driving growth [12] Consumption Trends - New consumption trends include the rise of "Guochao" (China Chic), the experience economy, and channel integration, with domestic brands gaining traction among young consumers [14] - The duty-free shopping experience is evolving from transactional to experiential, requiring operators to curate lifestyle experiences rather than merely supply products [14] Category Insights - In the beauty category, makeup and fragrances are experiencing significant growth, driven by foreign travelers and male customers [15] - The luxury goods market shows diversification, with high-end and affordable luxury segments both performing well [16] - The liquor market is expanding with clear stratification across demographics, while food and general merchandise are steadily growing, particularly among Gen Z and senior consumers [17][18] Future Outlook - The duty-free and travel retail market is expected to continue advancing, with structural opportunities emerging and a focus on immersive customer experiences [20] - CDFG plans to deepen its digital-intelligence ecosystem and integrate various sectors to enhance customer engagement and promote high-quality industry development [20]

Summary of Inbound Travel Retail in China Industry Overview - The inbound travel retail market in China is projected to grow from **US$14 billion in 2024 to US$60 billion by 2034**, representing a **15% CAGR** [1][10][27] - By 2034, inbound travel retail is expected to account for **25% of China's total travel retail market**, up from **10%** in previous years [10][27] Key Drivers of Growth - **Globally Known Brands**: The presence of well-known brands and competitive pricing is attracting international tourists [4][10] - **Improved Shopping Experience**: The introduction of tax-free shopping (TFS) and instant tax refunds is enhancing the shopping experience for inbound tourists [5][10][31] - **Policy Support**: Recent policy changes are aimed at expanding tax-free shopping and improving infrastructure to support inbound tourism [26][48] Tax-Free Shopping Impact - The tax-free shopping market is expected to grow from **<US$0.5 billion in 2024 to US$20 billion by 2035** [94] - The **instant tax refund system** was expanded nationwide in April 2025, significantly increasing the number of malls offering this service from **2 to 17** among the top 20 malls in China [5][34][98] - Retail sales with tax refunds in cities like Shenzhen and Shanghai have shown remarkable growth, with increases of **160% and 75% YoY**, respectively, in the first half of 2025 [35][103] Competitive Pricing - Chinese brands offer products at **20-50% lower prices** compared to international markets, making them attractive to tourists [4][29] - Imported luxury goods in China are competitively priced, often similar to or lower than prices in key Asian markets [29][74] Market Segmentation - The inbound travel retail market is primarily driven by international tourists, excluding visitors from Hong Kong, Macau, and Taiwan, who are expected to contribute significantly to growth [27][45] - The duty-free market is also gaining traction, with projections of **US$5 billion in spending by inbound tourists by 2035** [36] Implications for Retailers - Retailers, malls, and duty-free operators in China are expected to benefit the most from the growth in inbound tourism [6][40] - Companies like **CR Land, Hang Lung Properties, and CTG Duty Free** are identified as key beneficiaries [43] Risks and Challenges - Potential dilution of the Hong Kong retail market due to increased competition from mainland China [6][40] - The need for improved tax refund services and training for sales staff to facilitate the shopping experience for tourists [39] Conclusion - The inbound travel retail market in China is at a pivotal point, with significant growth potential driven by favorable policies, competitive pricing, and an enhanced shopping experience. Retailers and duty-free operators are well-positioned to capitalize on this trend, although challenges remain in execution and market competition.