Daiwa: Raises China Duty Free Target Price to HK$60, Rating "In line with the market"

Morgan Stanley released a research report stating that the earnings per share forecast for China International Duty Free for the years 2025 to 2027 has been lowered by 13%, 7%, and 2% respectively, with revenue forecast also reduced by 6% to 8%. The target price has been raised from 55 Hong Kong dollars to 60 Hong Kong dollars, with a rating of "in sync with the market". The bank noted that the demand for duty-free goods is weaker than expected, especially on e-commerce platforms, and China International Duty Free's gross profit margin is still weak. However, with the opening of the Hainan Free Trade Port in mid-December this year, offline sales are expected to improve, and profit margins are expected to improve.