The Zhitong Finance App learned that Citi released a research report saying that maintaining the “buy” rating of Shangri-La (Asia) (00069) is believed to be the core beneficiary of China's long-term consumption upgrade. Due to the favorable outlook for RevPAR and profit margins, the profit forecast was raised and the target price was raised from HK$8.3 to HK$8.8.

According to the report, the Group's performance in the first half of the year recorded a strong rebound, and both revenue and net profit exceeded the bank's expectations. During the period, the company's net profit recovered to US$131 million, and revenue increased 60% year-on-year to US$1 billion. Although revenue is still 16% lower than in the first half of 2019, core net profit has returned to pre-pandemic levels, reaching $64.6 million.

The bank said it is optimistic about Shangri-La (Asia)'s continued recovery and rising profit margins in the second half of this year, and believes the group is fully prepared to capture the demand for luxury travel. The company's management raised the annual revenue per sellable housing (RevPAR) guideline for the full year of this year to 95% of 2019.