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Linklaters advises CTG Duty-Free on the largest IPO on the HKEX this year

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Linklaters advised China Tourism Group Duty Free Corporation (CTG Duty-Free), the world’s largest travel retailer, on the global offering and listing of its H shares on the main board of the Hong Kong Stock Exchange (HKEX). The offering raised US$2.1bn in aggregate, making it the largest initial public offering (IPO) in Hong Kong SAR this year.

As a pioneer in China’s duty-free retail industry, CTG Duty-Free has the largest duty-free retail network in China, and a 24.6% market share of the global travel retail industry in 2021. As the world’s largest travel retail operator, CTG Duty-Free opened China’s first comprehensive travel retail complex in 2014 – Sanya International Duty Free Shopping Complex - which is the largest standalone integrated travel retail complex in the world. It also continuously promotes the development of China’s duty-free industry.

CTG Duty-Free's successful listing on the HKEX not only reaffirmed the financing capability of Hong Kong as an international financial centre, and its attractiveness to Chinese companies, but also marked an important milestone for CTG Duty-Free in entering the international capital market, laying a solid foundation for its future international development. As the issuer counsel, Linklaters assisted CTG Duty-Free in navigating the complex regulatory environment and obtaining important waivers, highlighting the firm’s expertise in helping Chinese issuers to raise capital in the international capital markets and its prominence in the Hong Kong IPO market.   

The Linklater’s team was led by capital markets partner Iris Leung , with support from capital markets partner Lipton Li and counsel Wei Liang and  corporate counsel Donnelly Chan .

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CTG DUTY-FREE sets sail in the A+H era by successful listing on the HKEX

In recent years, the concept of duty-free has drawn much attention. As the only retail operator with four duty-free licenses covering all duty-free sales channels, China Tourism Group Duty Free Corporation Limited (CTG DUTY-FREE, HKG: 1880) is undoubtedly a duty-free industry pioneer.

On 25 August 2022, China Tourism Group Duty Free Corporation Limited was officially listed and traded on the main board of the Hong Kong Stock Exchange. The issue price was HK$158 per share, and the total amount of funds raised was about HK$16.236 billion. It is reported that CTG DUTY-FREE is the largest IPO in Hong Kong this year, and it has officially become an “A+H” dual-listed company.

On the morning of August 26, the listing ceremony of CTG DUTY-FREE was successfully held at the HKEX. The Deputy Director of the Liaison Office of the Central People’s Government in the Hong Kong Special Administrative Region (LOCPG), Mr. Yin Zonghua; the Financial Secretary of the Hong Kong SAR Government, Mr. Paul Chan; the CEO of the HKEX, Mr. Nicolas Aguzin; and other relevant representatives attended the listing ceremony, marking a new step for CTG DUTY-FREE in the international capital market.

This ceremony was managed by Mr. Peng Hui, Chairman of the Board of CTG DUTY-FREE, together with four representatives: a consumer representative, an investor representative, a supplier representative and a staff representative. Meanwhile, Mr. Wang Haimin, General Manager of China Tourism Group, was also present to witness this historic moment.

It is noteworthy that the company invited a consumer representative, a staff representative, a well-known brand supplier representative and a shareholder representative, which reflects the market-oriented and international characteristics of CTG DUTY-FREE and simultaneously shows the company’s customer-focused, trusted, ethical business operating and excellent service business philosophy. The company aims to build a solid supply chain and create a better future for consumers, employees, partners, and shareholders.

A quality stock on the HKEX that attracts high market attention Under the pandemic for over two years, international duty-free operators have been under pressure to varying degrees. However, CTG DUTY-FREE’s performance has risen against the trend and has ranked first in the world for duty-free for two consecutive years from 2020 to 2021. As of the end of 2021, CTG DUTY-FREE’s market share in the global travel retail industry has reached 24.6%, and its share in China’s duty-free market is as high as 86.0%.

CTG DUTY-FREE’s listing on the HKEX has become the most “outstanding stock” among the newly listed stocks. Combining with the company’s fundamentals and development potential, the long-term investment value is significant, and the share of CTG DUTY-FREE is undoubtedly a high-quality and scarce resource for investors in the Hong Kong stock market.

Industry insiders consider that the action of CTG DUTY-FREE’s listing on the HKEX could assist the company in employing the international capital platform to further accelerate the expansion of both domestic and international channels. It will also improve the efficiency of the supply chain and promote the extension of the industrial chain, thereby consolidating its leading position in the global travel retail market.

As the “fundraising king” of Hong Kong stocks this year, it is worth mentioning that there were nine cornerstone investors engaged in the listing of CTG DUTY-FREE, a quite strong lineup including many sovereign funds, large domestic and foreign long-term funds, large central enterprises and upstream and downstream leaders in the industry chain. In addition, in the international placing, CTG DUTY-FREE’s book building was fully covered within an hour, while the HK public offering was over-subscribed 1.06 times, which shows Hong Kong stock investors’ recognition and confidence in CTG DUTY-FREE’s long-term development.

A duty-free pioneer lands on the HKEX, setting off a new wave of development It is reported that the funds raised this time will be used to reinforce domestic channels, expand overseas channels, improve supply chain efficiency, upgrade information technology systems and marketing, and improve the customer loyalty program. It is evident that CTG DUTY-FREE has a clear plan for its future development, and this listing on the HKEX powerfully reveals its determination for a new round of expansion.

Regarding the possible positive impact of listing on the HKEX, CTG DUTY-FREE once said that internationalization has always been one of the critical long-term strategic goals in the company’s development process. Hong Kong has an open and mature capital market that international investors have widely recognized for many years. On the one hand, the listing on HKEX is conducive to the establishment of both domestic and overseas platforms for the company, the further development of the company through the support of domestic and foreign capital, as well as the continuous promotion of the company’s internationalization and overseas business expansion. On the other hand, it is beneficial for the company to build up its capital barrier so that it is expected to use more funds to construct Haikou International Duty-free Complex, Site II, Phase I of Sanya International Duty-free Complex, downtown duty-free stores, and other projects.

Currently, under the environment of consumption upgrade, due to the impact of the pandemic and the narrowing of the price gap between domestic and international luxury goods, the trend of overseas consumption returning is apparent. On the other hand, under the 14th Five-Year Plan to build a new pattern of the domestic and international dual cycle to promote each other’s development and the favorable policy of Hainan Free Trade Port development, China’s duty-free market continues to recover and expand significantly. This is a unique advantage for CTG DUTY-FREE, whose core business is in China. According to Frost Sullivan, from 2019 to 2021, CTG DUTY-FREE alone serves more than 2.2 billion passengers at airports where it has opened stores.

In addition to the mainland market, CTG DUTY-FREE has been continuously expanding its overseas business around consumer groups and demand changes. With the development of China’s economy, Chinese tourists have become the main customer group of the global duty-free or travel retail industry. CTG DUTY-FREE has opened and operated nine duty-free shops, which are centered around the major overseas tourist destinations for Chinese tourists, including seven in Hong Kong, Macau, and Cambodia and two cruise duty-free shops, all of which have achieved good results.

From the prospectus disclosed by CTG DUTY-FREE, it can be found that the deployment of important duty-free shops at customs, the development of cruise duty-free projects at major overseas ports, and the construction of a representative duty-free complex in Hainan, or even the innovative development of online business, all of them lead CTG DUTY-FREE’s path to be a pioneer. With operation permits for all types of duty-free stores, CTG DUTY-FREE constantly upgrades and adjusts its business policy according to the changes in the consumption environment and the iteration of public consumption habits. It is foreseeable that after the HKEX Listing, the company will have more resources at home and abroad to provide services for tourists worldwide.

Looking forward, it is believed that under the great potential of the global travel retail market and with the assistance from both domestic and foreign capital, CTG DUTY-FREE, which has the most comprehensive duty-free retail channels and the largest market share in China, will strengthen its business scope and reinforce its leading position in the global travel retail market.

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China Duty Free gets HKEX approval for $5 Billion IPO

The company’s Shanghai shares fell as much as 1.9% on Wednesday.

China Tourism Group Duty Free Corp., the world’s largest travel retailer, has received permission from the Hong Kong stock exchange to proceed with a share sale in Asia’s financial hub, according to people familiar with the matter.

The offering by the state-owned operator of duty-free businesses across China, Hong Kong, Macau and some Southeast Asian cities could raise about $5 billion, one of the people said, asking not to be identified as the information is private.

At $5 billion, the IPO would be this year’s second biggest in Hong Kong, after Chinese short-video company Kuaishou Technology’s initial public offering which raised $6.2 billion in the first quarter, according to data compiled by Bloomberg.

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China's duty-free champion looks to go abroad via HKEX

Bolstered by Hainan shopping boom, state-owned CTGDF seeks offshore M&A

HONG KONG -- China's policy of promoting its southern island province of Hainan as a destination for domestic shopping sprees has upended the traditional global order of duty-free retailers amid the COVID pandemic, thrusting the country's leading operator to the top.

On Friday, Peng Hui, chairman of Shanghai-listed China Tourism Group Duty Free, said the state-owned company would also list its shares in Hong Kong to raise its global brand profile and create a platform for international investors and acquisitions. The company's operations are currently concentrated in mainland China, though it has a small presence in Hong Kong, Macao and Cambodia.

China's global share of luxury spending nearly doubles amid COVID

China duty-free surge convinces pola to add 20 more stores, chinese court says troubled hna group's businesses highly chaotic, china's duty-free island shopping boom powers 142% profit surge, alibaba and dufry team up to woo duty-free shoppers, latest on retail, giordano ceo voted out after fight with hong kong tycoon cheng, south korea's coupang plans $2bn expansion of next-day delivery, japan's aeon to even out pay between part- and full-time workers, sponsored content, about sponsored content this content was commissioned by nikkei's global business bureau..

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CTG Duty Free raises HKD16bn in Hong Kong

China Tourism Group Duty Free (CTG Duty Free), the world’s largest travel retailer, has raised HKD16.24 billion (USD2.07 billion) from its IPO on the HKEX on 25 August, replacing Tianqi Lithium as the city’s biggest listing so far this year.

The secondary listing sold approximately 103 million shares at HKD158 each and its primary listing is on the SSE.

Linklaters advised CTG Duty Free on Hong Kong and US laws, led by Iris Leung with support from capital markets partner Lipton Li and corporate counsels Liang Wei and Donnelly Chan. Haiwen & Partners advised CTG Duty Free on PRC law.

Though the number of companies going public in Hong Kong has decreased this year, Linklaters capital markets partner Leung told China Business Law Journal : “CTG Duty Free’s successful listing on the HKEX not only reaffirmed the financing capability of Hong Kong as an international financial centre, and its attractiveness to Chinese companies, but also marked an important milestone for CTG Duty Free in entering the international capital market, laying a solid foundation for its future international development.”

She added that Linklaters had assisted the newly listed company in navigating the increasingly complex regulatory environment and obtaining certain important waivers.

Freshfields acted as Hong Kong and US counsel to the joint sponsors and underwriters, while Jia Yuan Law Offices acted as PRC counsel.

CICC and DBS bank are joint sponsors with an aggregate of 15 investment banks included as underwriters.

Haiwen & Partners ’ team was led by partners Huo Chao , Xiao Yi and Xu Qifei , with support from managing partner Zhang Jiping, partners Gao Wei and Fu Yan.

Freshfields’ leading partners are China chairman Teresa Ko, Richard Wang and Calvin Lai.

Jia Yuan’s team was led by the founding partner Yan Yu, senior partner Li Li and partner Wang Jieting, with assistance from senior partner Yi Jiansheng and partner Sun Di.

CTG Duty Free remains the world’s largest travel retailer in 2021 with a performance of EUR9.37 billion, twice as much as the next ranked store South Korea’s Lotte Duty Free, according to The Moodie Davitt Report, a travel retail industry multimedia publisher.

The leading retailer’s prospectus said its profits had continued to rise in the past three years, with net profits of RMB5.47 billion (USD798.62 million), RMB7.11 billion and RMB12.44 respectively.

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Linklaters advises CTG Duty-Free on the largest IPO on the HKEX this year

Linklaters advised China Tourism Group Duty Free Corporation (CTG Duty-Free), the world’s largest travel retailer, on the global offering and listing of its H shares on the main board of the Hong Kong Stock Exchange (HKEX). The offering raised US$2.1bn in aggregate, making it the largest initial public offering (IPO) in Hong Kong SAR this year.

As a pioneer in China’s duty-free retail industry, CTG Duty-Free has the largest duty-free retail network in China, and a 24.6% market share of the global travel retail industry in 2021. As the world’s largest travel retail operator, CTG Duty-Free opened China’s first comprehensive travel retail complex in 2014 – Sanya International Duty Free Shopping Complex – which is the largest standalone integrated travel retail complex in the world. It also continuously promotes the development of China’s duty-free industry.

CTG Duty-Free’s successful listing on the HKEX not only reaffirmed the financing capability of Hong Kong as an international financial centre, and its attractiveness to Chinese companies, but also marked an important milestone for CTG Duty-Free in entering the international capital market, laying a solid foundation for its future international development. As the issuer counsel, Linklaters assisted CTG Duty-Free in navigating the complex regulatory environment and obtaining important waivers, highlighting the firm’s expertise in helping Chinese issuers to raise capital in the international capital markets and its prominence in the Hong Kong IPO market.

The Linklater’s team was led by capital markets partner  Iris Leung , with support from capital markets partner  Lipton Li  and counsel  Wei Liang  and  corporate counsel  Donnelly Chan .

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China Tourism Group Duty Free Corporation Limited Stock price Hong Kong S.E.

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Delayed Quote Hong Kong S.E., April 05, 2024 at 01:40 am EDT

Company Profile

Income statement evolution, ratings for china tourism group duty free corporation limited, analysts' consensus, eps revisions, quarterly earnings - rate of surprise, sector duty free shops.

• Stock China Tourism Group Duty Free Corporation Limited
• Stock China Tourism Group Duty Free Corporation Limited - Hong Kong S.E.

CHINA TOURISM GROUP DUTY FREE CORP

1880 technical analysis.

China Tourism Group Duty Free Corp Ltd

China Tourism Group Duty Free Corp. Ltd. engages in the provision of travel services and the sale of merchandise.

China Tourism Group Duty Free Corp Ltd HKEX:1880

Intrinsic value.

China Tourism Group Duty Free Corp. Ltd. engages in the provision of travel services and the sale of merchandise. [ Read More ]

The intrinsic value of one China Tourism Group Duty Free Corp Ltd stock under the Base Case scenario is 106.39 HKD . Compared to the current market price of 75.65 HKD , China Tourism Group Duty Free Corp Ltd is Undervalued by 29% .

Relative Value

Wall st target, positive roe, positive net income, valuation backtest china tourism group duty free corp ltd.

Run backtest to discover the historical profit from buying and selling China Tourism Group Duty Free Corp Ltd stocks based on their intrinsic value.

Analyze the historical link between intrinsic value and market price to make more informed investment decisions.

Fundamental Analysis

Our AI Assistant is coming soon! Stay tuned and thank you for your interest!

Provide an overview of China Tourism Group Duty Free Corp Ltd's business.

What risks and challenges does China Tourism Group Duty Free Corp Ltd face in the near future?

Summarize the latest earnings report of China Tourism Group Duty Free Corp Ltd.

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Balance Sheet Decomposition China Tourism Group Duty Free Corp Ltd

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China Tourism Group Duty Free Corp Ltd's profitability score is 59/100. The higher the profitability score, the more profitable the company is.

Exceptional 3-Year Average ROIC

Exceptional 3-year average roe, positive gross profit, exceptional revenue growth forecast.

Solvency Score Solvency Due Diligence

China Tourism Group Duty Free Corp Ltd's solvency score is 83/100. The higher the solvency score, the more solvent the company is.

High Altman Z-Score

Negative net debt, short-term solvency, wall st price targets, price targets summary china tourism group duty free corp ltd.

According to Wall Street analysts, the average 1-year price target for China Tourism Group Duty Free Corp Ltd is 110.11 HKD with a low forecast of 73.78 HKD and a high forecast of 186.96 HKD .

Competitive Landscape

Shareholder return, price china tourism group duty free corp ltd, return decomposition main factors of price return, company profile, dividend yield, description.

China Tourism Group Duty Free Corp. Ltd. engages in the provision of travel services and the sale of merchandise. The company is headquartered in Beijing, Beijing and currently employs 14,720 full-time employees. The company went IPO on 2009-10-15. The travel agency businesses mainly include the inbound tourism, outbound tourism, domestic tourism, visa services, business travel services, air services and e-commerce, among others. The duty free businesses mainly include the wholesaling and retailing of alcohols, tobaccos, perfumes and cosmetics. The firm is also engaged in commercial complex investment development.

The intrinsic value of one China Tourism Group Duty Free Corp Ltd stock under the Base Case scenario is 106.39 HKD .

Compared to the current market price of 75.65 HKD , China Tourism Group Duty Free Corp Ltd is Undervalued by 29% .

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www.alphaspread.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on www.alphaspread.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. In no event shall Alpha Spread Limited be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on www.alphaspread.com, or relating to the use of, or inability to use, www.alphaspread.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance.

Stock intrinsic value is the real worth of a company's stock, based on its financial health and performance.

Instead of looking at the stock's current market price, which can change due to people's opinions and emotions, intrinsic value helps us understand if a stock is truly a good deal or not.

By focusing on the company's actual financial strength, like its earnings and debts, we can make better decisions about which stocks to buy and when.

Backtesting is a powerful tool that simulates how a particular strategy or model would have performed on historical data. This process allows investors to evaluate the effectiveness of investment decisions based on past market data without risking actual capital.

1. Select Valuation Methods: Choose the valuation methods you believe best represent the true value of the stocks you're interested in.

2. Define Trading Criteria: Specify the buy/sell conditions based on the stock's valuation relative to its market price.

3. Run the Backtest: Initiate the process to see how your strategy would have performed historically.

4. Analyze Results: Review the outcomes to refine your investment strategies and improve future decision-making.

By leveraging historical data, backtesting provides a window into how investment strategies might perform under similar market conditions, offering invaluable insights for future investments.

Note: Past results don't guarantee future performance.

Free Cash Flow (FCF) is the money a company has left over after it pays for all its expenses and any investments it needs to make to keep the company running smoothly.

Think of it like your personal budget at home: after you pay for your necessities, like rent and groceries, and set aside money for future needs, like saving for a car or home repairs, the cash you have left is what you're free to spend or save as you wish.

It's a sign of a company's health and its ability to do things like grow its business, pay dividends to shareholders, or reduce debt.

Flexibility: Companies with more FCF can make big moves without having to borrow money or ask for more investment, giving them the freedom to grow or tackle new projects on their terms.

Rewards for Investors: When a company has extra cash, it can decide to give some back to its investors through dividends or by buying back shares, which can increase the value of the remaining shares.

A Healthy Sign: Regularly having more cash coming in than going out shows that a company is doing well, making smart decisions, and earning more than it spends.

Price return decomposition is a method of analyzing the factors that contribute to the changes in the market capitalization of a company.

The price return decomposition breaks down the market cap return into two main components: the change in the price-to-earnings (P/E) multiple and the change in company earnings (as well as the change in revenue and net margin).

The change in the P/E multiple reflects the effect of changes in investor expectations and sentiment towards the company. A higher P/E multiple means that investors are willing to pay more for each dollar of earnings, indicating higher expectations for future growth. Conversely, a lower P/E multiple indicates lower expectations.

The change in earnings, on the other hand, represents the actual changes in the company's earnings over the given period.

The change in revenue and net margin are two other factors that can impact a company's market cap. An increase in revenue indicates that the company is generating more sales, while an improvement in net margin indicates that the company is becoming more efficient and generating more profit from each dollar of sales.

Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.