60 601888.SS China Tourism Group Duty Free Co., Ltd. Loading... : Bullish and Bearish Analyst Opinions

China Tourism Group Duty Free (Zhongmian) has seen its market cap collapse from 80 trillion to 23 trillion won, P/E has dropped to 19x from historical 30x, yet earnings are improving with Q2 margins expanding on inbound tourism recovery (+20% foreign visitors) and sustained domestic travel. The company commands 72% market share and 90% in Hainan. Despite the stock's collapse, the earnings recovery and low valuation create a re-rating opportunity, with a target price of 37–50, implying 32–37% upside from the last close.

China duty-free retailers face a structural headwind as Chinese outbound travel recovers post-COVID. More travelers choosing overseas destinations permanently reduces spending at domestic duty-free stores like those in Hainan. This shift is expected to persist as income growth continues to support international travel.