The BOC Securities Research Report points out that China's free revenue growth rate is slowing down, and profitability continues to be optimized. 26Q2 achieved revenue of 10.749 billion yuan, -5.75% year over year; net profit to mother was 758 million yuan, +14.54% year over year. Hainan's duty-free sales led the market, and the growth rate slowed slightly from month to month. Core subsidiaries Sanya City Store and 26H1 had year-on-year revenue of +28% and +3% year-on-year respectively, and net profit was +142% and +17% year-on-year respectively. Operating leverage was significantly released, and Haikou Duty Free City's performance turned from loss to profit year over year. Tax exemptions at ports and cities are progressing in an orderly manner, and breakthroughs have been made in the international layout. The medium- to long-term recommendations focus on the increase in performance brought about by overseas expansion, and are optimistic about the company's perfect layout as a leading enterprise in various channels. The current valuation has been fully adjusted to maintain the “buy” rating.

The BOC Securities Research Report points out that China's free revenue growth rate is slowing down, and profitability continues to be optimized. 26Q2 achieved revenue of 10.749 billion yuan, -5.75% year over year; net profit to mother was 758 million yuan, +14.54% year over year. Hainan's duty-free sales led the market, and the growth rate slowed slightly from month to month. Core subsidiaries Sanya City Store and 26H1 had year-on-year revenue of +28% and +3% year-on-year respectively, and net profit was +142% and +17% year-on-year respectively. Operating leverage was significantly released, and Haikou Duty Free City's performance turned from loss to profit year over year. Tax exemptions at ports and cities are progressing in an orderly manner, and breakthroughs have been made in the international layout. The medium- to long-term recommendations focus on the increase in performance brought about by overseas expansion, and are optimistic about the company's perfect layout as a leading enterprise in various channels. The current valuation has been fully adjusted to maintain the “buy” rating.