＜Research＞UBS Forecasts CTG DUTY-FREE (01880.HK) 2Q24 NP to Slump 20%, Possibly Missing

　　UBS forecasted in a research note that CTG DUTY-FREE (01880.HK) +0.550 (+1.078%) Short selling $4.71M; Ratio 6.624% 's airport business may contribute RMB2 billion - RMB3 billion in duty-free sales in 2Q24, but expected its Sunrise Shanghai duty-free shop business to see a YoY decline in online sales.

　　As a result, UBS now forecasted CTG DUTY-FREE's group revenue for 2Q24 to be in the range of RMB11.5 billion to RMB12.5 billion, with the airport business dragging down the overall gross margin for 2Q, which is expected to be flat YoY to slightly lower. As a result, 2Q net profit is predicted to fall by 17-25% YoY to RMB1.17 billion - RMB1.3 billion, which may be weaker than market expectations.

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　　Although CTG DUTY-FREE's duty-free products have a certain price advantage, UBS expected the current weak domestic market and sluggish consumer sentiment to continue having a negative effect, while competition from third-party channels and diversion towards overseas sales will also have an impact.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-10 12:25.)

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