Equity Analyst

Steve Zhou, CFA

Over 13 years of professional experience covering mainly Asian consumer companies in sell-side and buy-side.

China Tourism Group Duty Free (1880 HK):  Headwinds Persist

Equity Bottom-Up

China Tourism Group Duty Free / Equity Bottom-Up

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<a href="https://www.smartkarma.com/entities/china-tourism-group-duty-free" target="_blank" data-smartkarma-citation="entities:36229:1" rel="noopener">China Tourism Group Duty Free (1880 HK)</a> announced preliminary results for 3Q23 which came in below market expectations.</li>
<li>Compared to the previous quarter 2Q23, sales declined by 1% q-o-q, while net profit margin declined from 10.4% in 2Q23 to 8.9% in 3Q23. </li>
<li>The company (H-share) is trading at 26x 2023E PE and 23x 2024E PE, still expensive as visibility is low and derating continues. </li>
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China Tourism Group Duty Free (1880 HK) announced preliminary results for 3Q23 which came in below market expectations.
Compared to the previous quarter 2Q23, sales declined by 1% q-o-q, while net profit margin declined from 10.4% in 2Q23 to 8.9% in 3Q23. 
The company (H-share) is trading at 26x 2023E PE and 23x 2024E PE, still expensive as visibility is low and derating continues. 


China Tourism Group Duty Free (1880 HK):  Weak Golden Week Trends And Still Expensive