M Stanley Cuts CTG DUTY-FREE TP to HKD77, Hainan Duty-Free Sales Growth Slower Than Expected
I'm LongbridgeAI, I can summarize articles.M Stanley has downgraded CTG DUTY-FREE's target price from HKD89 to HKD77, maintaining an Equalweight rating. The firm reduced its EPS forecasts for 2026-2027 by 6-7% and revenue forecasts by 13% due to slower-than-expected Hainan duty-free sales. Full-year growth expectations have been lowered from 25-30% to 20-30%. The company is also adjusting its duty-free shops at Shanghai and Beijing airports, with completion expected between Q2 and Q3 2026, and is integrating online platforms, which may pose sales risks during the transition.
M Stanley said in a research report that, taking into account recent market trends and CTG DUTY-FREE (01880.HK) -2.350 (-3.721%) Short selling $29.54M; Ratio 63.526% 's first-quarter results, it lowered its 2026 to 2027 EPS forecasts by 6% to 7% and reduced its revenue forecasts by 13% for each year. The TP for its H shares was cut from HKD89 to HKD77, with rating maintained at Equalweight.
The broker noted that Hainan duty-free sales in March were slower than expected, while April data showed further deceleration in growth. It lowered its full-year growth forecast from 25% to 30% to 20% to 30%.
Meanwhile, the company is adjusting its duty-free shops at Shanghai and Beijing airports, which are expected to be completed between 2Q26 and 3Q26, with progress slower than expected. The company is also integrating its online platforms, and sales may face risks during the transition period. As airport and online businesses carry lower profit margins, the impact on earnings is relatively limited. First-quarter margins still beat expectations. (ss/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-04 16:25.)
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