Investment Rating - The report assigns a rating of "Buy" to the company with a target price of 10.75 CNY [6][22]. Core Insights - The company focuses on its duty-free core business, accelerates category expansion, and benefits from policy dividends, leading to expected high growth in performance [2]. - The company is positioned to benefit from the establishment of new duty-free stores at Hengqin Port and Sanya Island, contributing to revenue growth [4]. - The company has successfully integrated 51% equity of Zhuhai Duty-Free, establishing a strategic direction centered on duty-free operations [13]. Financial Summary - Total revenue is projected to be 6,997 million CNY in 2023, with a significant increase of 72.9% from the previous year, followed by a decline in 2024 and 2025 [5][21]. - The net profit attributable to the parent company is expected to be -390 million CNY in 2023, with a forecasted recovery to 468 million CNY by 2026 [5][21]. - The company anticipates a net profit margin improvement, with projections of 11.8% in 2026 and 14.0% in 2027 [21]. Revenue Forecast - Revenue is expected to reach 39.70 billion CNY in 2025, 39.74 billion CNY in 2026, and 44.80 billion CNY in 2027 [17][19]. - The duty-free business is projected to grow by 15% in 2025, 20% in 2026, and 15% in 2027, driven by increased passenger flow and new product categories [19]. Company Overview - The company is a key player in the duty-free market, with a network of 18 duty-free operations across various ports, primarily in the Guangdong-Hong Kong-Macao Greater Bay Area [24][28]. - The company has established a strong competitive position due to its scarce duty-free licenses, which are difficult for new entrants to replicate [28]. - The company has a history of expansion and innovation, having started its duty-free operations in 1980 and continuously adapting to market changes [34][39].