The Zhitong Finance App learned that China's China Free Tax Service (01880) has now fallen by more than 4%, with a low of HK$63.6, a new listing low. As of press release, it was down 4.14% to HK$63.7, with a turnover of HK$24.65,800.

According to the news, China Zhongfu previously released a performance report. Revenue for the first quarter of 2024 was 18.807 billion yuan, down 9.45% year on year; net profit to mother was 2,308 billion yuan, up 0.33% year on year and 53% month on month. During the reporting period, the gross margin of the company's main business was 32.70%, an increase of 3.95 percentage points over the same period last year, and profitability increased steadily.

Cinda Securities pointed out that under the influence of factors such as crackdown on purchasing, weak consumption power, and outbound travel diversion, demand in the Hainan sector is under pressure, and revenue is expected to fall by more than 20% year on year under high base; with offline restorative growth and online stability, Shanghai may increase 20% year on year; other sector contributions have benefited from the successive recovery of port stores, and the share of revenue has increased steadily.

Looking ahead to 24 years, with the resumption of outbound travel and the implementation of new airport rental contracts, the revenue and profit flexibility of port duty-free shops is expected to exceed expectations; there is still room for improvement in profitability: in '23, the company was greatly affected by the exchange rate, the discount level was less stable, and the credit policy was revised in June. The share of duty-free sales increased, the revenue structure improved, and gross margin is expected to be further repaired under the combined influence. If the market agrees on favorable changes in customs clearance policies, the valuation is expected to gradually rise.