Company Coverage
China Tourism Group Duty Free (601888 CH) - 3Q26: Results Miss Expectations
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Rmb50.30
Rmb68.70
+36.6%
Rmb77.10
Analyst
Analyst
Highlights
- CTGDF’s 3Q26 results missed. Revenue declined 5% yoy, but net profit rose 25% yoy, driven by gross margin expansion, lower minority interests and non-operating items.
- Hainan offline duty-free sales growth slowed to 2% yoy in 3Q26 (vs +4% in 2Q26), with per capita spending flat yoy (+1% yoy in 2Q26). Meanwhile, CTGDF’s international business continued to expand, with revenue growing 71% yoy in 9M26, following the acquisition of DFS’ Greater China retail business.
- Maintain BUY; cut target price by 11% to Rmb68.70.

Analysis
- 3Q26 results missed. China Tourism Group Duty Free (CTGDF) reported its 9M26 results. Revenue was Rmb38,821m (-3% yoy). Gross profit was Rmb13,171m (+2% yoy), and gross margin was 33.9% (+1.4ppt yoy). EBIT was Rmb4,369m (+4% yoy), with EBIT margin at 11.3% (+0.7ppt yoy). Net profit was Rmb3,670m (+20% yoy), and net margin was 9.5% (+1.8ppt yoy).

Highlights
- CTGDF’s 3Q26 results missed. Revenue declined 5% yoy, but net profit rose 25% yoy, driven by gross margin expansion, lower minority interests and non-operating items.
- Hainan offline duty-free sales growth slowed to 2% yoy in 3Q26 (vs +4% in 2Q26), with per capita spending flat yoy (+1% yoy in 2Q26). Meanwhile, CTGDF’s international business continued to expand, with revenue growing 71% yoy in 9M26, following the acquisition of DFS’ Greater China retail business.
- Maintain BUY; cut target price by 11% to Rmb68.70.

Analysis
- 3Q26 results missed. China Tourism Group Duty Free (CTGDF) reported its 9M26 results. Revenue was Rmb38,821m (-3% yoy). Gross profit was Rmb13,171m (+2% yoy), and gross margin was 33.9% (+1.4ppt yoy). EBIT was Rmb4,369m (+4% yoy), with EBIT margin at 11.3% (+0.7ppt yoy). Net profit was Rmb3,670m (+20% yoy), and net margin was 9.5% (+1.8ppt yoy).

BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Rmb50.30
Rmb68.70
+36.6%
Rmb77.10
Analyst
Analyst
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