BofAS Cuts CHINA DUTY FREE TP to RMB85, Rates Neutral
I'm LongbridgeAI, I can summarize articles.BofAS has downgraded its target price for China Duty Freefrom RMB95 to RMB85, reflecting a 10% cut in its 2026 EPS forecast due to weaker-than-expected 1Q results. The company's core net profit rose 21% YoY to RMB2.3 billion, aligning with market expectations but falling short of BofAS's forecast. Revenue increased 1% YoY to RMB16.9 billion, with Hainan sales growing 28% YoY. BofAS maintains a Neutral rating, suggesting limited growth potential for duty-free sales moving forward.
BofAS issued a research report stating that CTG DUTY-FREE (01880.HK) -1.800 (-2.983%) Short selling $91.58M; Ratio 65.074% 's 1Q core net profit rose 21% YoY to RMB2.3 billion, in line with market expectations but below the broker's forecast. Revenue increased 1% YoY to RMB16.9 billion. Hainan sales grew 28% YoY to RMB12.6 billion, implying declines in airport duty-free and online sales during the quarter, and also missing the broker's expectations. Gross margin improved 0.6 ppts YoY to 33.6%, while core net margin rose 2.2 ppts YoY to 13.8%.
BofAS lowered its 2026 EPS forecast for CHINA DUTY FREE (601888.SH) -2.420 (-3.688%) by 10% to reflect the weaker-than-expected 1Q results. The broker cut its A-share TP for CHINA DUTY FREE (601888.SH) -2.420 (-3.688%) from RMB95 to RMB85, equivalent to a forecast 2026 PE ratio of 35x, broadly in line with the historical median of 34x. The broker believes duty-free sales growth may have peaked in 1Q, with limited room for re-rating, and maintained a Neutral rating. (ec/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-05 16:25.) (A Shares quote is delayed for at least 15 mins.)
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