---
title: "Goldman Sachs raises the target price for CTG DUTY-FREE to 67 yuan, maintaining a \"Neutral\" rating"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/280247149.md"
description: "Goldman Sachs raised the target price for CTG DUTY-FREE to 67 yuan, maintaining a \"Neutral\" rating. The report pointed out that CTG DUTY-FREE's net profit last year fell by 16% to 3.6 billion yuan, slightly below expectations, mainly due to goodwill impairment. The sales of Hainan duty-free shops last year were 38 billion yuan, with fourth-quarter sales increasing by 19% year-on-year. The new duty-free contract is expected to have an impact of approximately -4% to -5% on CTG DUTY-FREE's profits. Goldman Sachs raised its earnings forecast for 2026 to 2027 by 4% to 6%"
datetime: "2026-03-24T02:21:31.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/280247149.md)
  - [en](https://longbridge.com/en/news/280247149.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/280247149.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/280247149.md) | [繁體中文](https://longbridge.com/zh-HK/news/280247149.md)


# Goldman Sachs raises the target price for CTG DUTY-FREE to 67 yuan, maintaining a "Neutral" rating

Goldman Sachs published a research report indicating that China Tourism Group Duty Free (01880.HK) saw a 16% year-on-year decline in net profit last year to RMB 3.6 billion, slightly below the bank's and market expectations, mainly due to goodwill impairment losses of about RMB 200 million. Excluding the related impacts, the annual net profit of approximately RMB 3.7 billion met expectations, indicating that the net profit for the fourth quarter reached RMB 700 million.

The report stated that sales at Hainan duty-free shops reached RMB 38 billion last year, a year-on-year decline of 2%, but grew by 19% year-on-year in the fourth quarter, significantly improving from the declines of 10%, 4%, and 3% in the first three quarters, mainly benefiting from a reduction in the diversion of travelers to overseas countries and the issuance of consumption vouchers by the Hainan government, providing an additional 5% to 10% price discount for Sanya stores. The number of tourists arriving on the island grew by 12% year-on-year in the fourth quarter, accelerating from 8% in the third quarter, although the number of shoppers declined by 8% year-on-year to 1.1 million, but per capita spending increased by 30% year-on-year.

Shanghai Airport previously announced new duty-free contracts for Pudong and Hongqiao airports, effective from January 1 of this year, with China Tourism Group operating the duty-free areas at Pudong Airport T2 and the satellite hall, and Hongqiao Airport T1, compared to the old agreement from 2019 to 2025 where a subsidiary of China Tourism Group operated Pudong Airport T1 and T2, expecting an impact on China Tourism Group's profits of about -4% to -5%. The new duty-free contract at Beijing Capital Airport will take effect from February 11 of this year, with China Tourism Group paying a fixed annual fee of RMB 480 million, plus a commission of 5% to 9% on duty-free sales, with the overall revenue sharing ratio similar to the levels of 2024 to 2025, but lower than the pre-pandemic level of 40%.

Goldman Sachs raised its profit forecast for China Tourism Group for 2026 to 2027 by 4% to 6%, with the target price for China Tourism Group (601888.SH) A shares raised from RMB 75 to RMB 77, and the target price for Hong Kong shares raised from HKD 65 to HKD 67, maintaining a "Neutral" rating

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