Changes in Hong Kong stocks | China Free (01880) fell nearly 5% in the afternoon, Hainan duty-free sales are still under pressure. Institutions expect China's revenue to drop by more than 10% in the third quarter

The Zhitong Finance App learned that the China Free Tax Service (01880) fell nearly 5% in the afternoon. As of press release, it was down 4.45% to HK$55.85, with a turnover of HK$138 million.

According to the news, from October 1 to 7, Haikou Customs supervised a total of 785 million yuan/day average of -32.5% of duty-free shopping, 110,200 duty-free shoppers per day/average of -25.9%, and per capita consumption of 7,124 yuan/year over year. CITIC Construction Investment Securities believes that the decline in duty-free sales on the outlying islands in September is expected to expand month-on-month, and the overall conversion rate is still under pressure.

According to China Merchants Securities, in July-August 2024, the passenger flow in Hainan has already surpassed the same period in 2019. It is estimated that overall duty-free sales on the outlying islands in Q3 will be 55 to 5.6 billion yuan, down about 35% from the previous year. Among them, the number of duty-free shoppers will drop by about 20%, and the per capita shopping unit price will drop by 15%-20%. China Free Q3 is expected to achieve revenue of 13.2 billion yuan/-11.7% YoY, and net profit to mother of 1.03 billion yuan/-22.9% YoY. Shen Wan Hongyuan said that China is expected to achieve operating income of 128.26-13.58 billion yuan in the third quarter, a year-on-year decrease of 10-15%, and a net profit of 12.07-1,274 billion yuan, a year-on-year decrease of 5%-10%.