HK Stock Market Move | China Tourism Group Duty Free Corporation (01880) rises more than 3%, the decline in duty-free sales on outlying islands in Hainan narrows, and the outbound tax refund policy is further optimized.

China Tourism Group Duty Free Corporation (01880) rose by over 3%, as of the time of writing, it increased by 3.23% to HKD 52.75, with a turnover of HKD 166 million. In terms of news, China Tourism Group Duty Free Corporation released its first quarter report for 2025, with operating income of RMB 16.746 billion, a year-on-year decrease of 10.96%; net profit attributable to shareholders of the listed company was RMB 1.938 billion, a year-on-year decrease of 15.98%. In addition, according to Haikou Customs, the sales of duty-free goods in Hainan's outlying islands in the first quarter were RMB 11.31 billion, a year-on-year decrease of 11.4%, with a narrowing decrease in March to -5.3%. Soochow believes that China Duty Free's market position is stable, and in the medium to long term, it is optimistic about China Duty Free as a leading player in tourism retail benefiting from the policy of downtown duty-free shops and the gradual recovery of outbound tourism. It will benefit from the relatively high industry growth rate in a consumer boom. According to reports, with the recent introduction of measures such as "buy-now-refund-when-leaving" for overseas tourists, the "May Day" holiday saw a surge in inbound tourism. CITIC SEC stated that although departure tax refund shops and duty-free shops belong to different channels, for duty-free operators, especially the leading tourism retailer China Tourism Group Duty Free Corporation, their store layouts are distributed in core ports and core cities, which are must-pass points for inbound and outbound tourists. The growth in inbound tourism and associated shopping is expected to drive the sales performance of its various types of stores.