In "Major Banks," China International Capital Corporation lowered the target price for CTG DUTY-FREE to 95 yuan, with last year's fourth-quarter performance meeting market expectations

According to a research report by China International Capital Corporation (CICC), CTG DUTY-FREE (01880.HK) is expected to see a 4.92% year-on-year decline in revenue to RMB 53.694 billion in 2025, with net profit attributable to the parent company decreasing by 15.96% to RMB 3.586 billion.

In the fourth quarter of last year alone, CTG DUTY-FREE's revenue grew by 2.81% year-on-year to RMB 13.831 billion, while net profit attributable to the parent company increased by 53.59% to RMB 534 million. Excluding a goodwill impairment loss of RMB 338 million, the adjusted net profit attributable to the parent company grew by 150.73% year-on-year to RMB 872 million, corresponding to a non-GAAP net profit margin increase of 3.7 percentage points year-on-year to 6.3%, mainly due to a 4.8 percentage point year-on-year increase in gross profit margin to 33.3%; the fourth quarter performance met market expectations.

The firm maintains its earnings forecasts for CTG DUTY-FREE at RMB 5.483 billion and RMB 6.31 billion for 2026 and 2027, respectively, and retains an "outperform the industry" rating. Considering the downward shift in industry valuation, the target price for CTG DUTY-FREE's Hong Kong stock is lowered by 17% to HKD 95, and the target price for CTG DUTY-FREE (601888.SH) A-shares is reduced by 11% to RMB 95