“The King of Tax Free” is finally about to usher in the A+H era.
On the evening of November 22, the documents of the Hong Kong Stock Exchange showed thatChina FreePass the listing hearing and disclose the post-hearing data set.CICCAnd UBS Securities are the company’s joint sponsors. this means,China FreeIt is about to enter the “A+H” era and accelerate its integration into the international capital market.
China FreeLanded on the Shanghai Stock Exchange in 2009. On June 25 this year, the company submitted a listing application to the Hong Kong Stock Exchange. November 11, China Freedomannouncement, The China Securities Regulatory Commission approved the company’s issuance of no more than 195 million overseas listed foreign shares with a par value of RMB 1 each, all of which are ordinary shares.
Global market share exceeds 1/5
● China CDF was established in 1984 and belongs to a central state-owned enterprise, with China Tourism Group as its controlling shareholdershareholder, The shareholding ratio reaches 53.30%. The company focuses on tax-free business and has now developed into the world’s largest travel retail operator.
According to Frost & Sullivan’s data, based on retail sales, CDF’s global ranking has been rising in the past 10 years, from 19th in 2010 to 12th in 2015 and 4th in 2019. , And ranks first in the world in 2020.
Benefiting from the rapid development of the global tax-free market, especially in China, in 2020, China CDF will account for 22.6% of the global travel retail industry market share.
The listing in Hong Kong stocks this time shows that China CDF is determined to expand further. The prospectus shows that the funds raised after the listing will be used to expand overseas channels, consolidate domestic channels, promote the extension of the industrial chain, and improve the efficiency of the supply chain.
Among them, in terms of expanding overseas channels, the funds raised will be used to open duty-free shops in overseas cities; expand duty-free shops at overseas ports; expand cruise duty-free shops; and selectively acquire overseas travel retail operators.
At present, CDFG is the only retail operator in China that covers tax-free sales channels, covering port stores, outlying island stores, city stores, cruise stores, inflight stores, and marine supply stores, and has the largest number of duty-free stores in the country.
The duty-free industry belongs to the national franchise industry. As of the end of 2020, CDFG is one of the ten groups of entities that hold tax-free operating licenses in China, and one of the six groups of entities that hold tax-free operating licenses to operate duty-free port stores across the country.
● The prospectus shows that CDF China operates 195 stores, including 187 stores in 29 provinces, municipalities and autonomous regions in China (covering more than 90 cities), and 8 overseas duty-free stores, including 6 in Hong Kong and Macau Operated with Cambodia and 2 cruise duty-free shops.
From the perspective of geographic coverage, China CDF is deeply engaged in Hainan’s duty-free business. The company has occupied the core channels of duty-free sales on Hainan’s outlying islands, including Haikou Meilan International Airport, Sanya Phoenix International Airport, the core areas of the urban areas of Haikou and Sanya, and the venue area of the Boao Forum for Asia.
In addition, China Duty Free also owns the franchise to operate duty-free shops in major aviation hubs in China and the Asia-Pacific region, including 9 airports among the top 10 airports in terms of international passenger throughput in 2020, especially Beijing Capital International Airport and Shanghai. The three major airports of Pudong International Airport and Guangzhou Baiyun International Airport, as well as Hong Kong International Airport and Macau International Airport.
In terms of financial data, the third quarterly report shows that CDFG’s total operating income for the first three quarters of 2021 was 49.499 billion yuan, a year-on-year increase of 40.87%, which was attributed to the motherNet profitIt was 8.491 billion yuan, a year-on-year increase of 168.35%, and the basic earnings per share was 4.35 yuan.
The market value has evaporated over 300 billion yuan in 9 months
Since last year, the duty-free industry has become a star sector in the big consumer sector.China FreedomPerformanceFly with the stock price. From April last year to the high of the stock price on February 18 this year, CDF’s stock price soared more than four times.
Despite the overall high growth in China’s CDF performance in the first three quarters of this year, due to the fact that the performance in the last two quarters has fallen short of market expectations, in the secondary market, the stock has seen a significant correction in recent times, and there has even been a price limit during the period.
Today (November 23), China’s CDF shares fell 1.37% to close at 220.50 yuan per share, with the latest market value of 430.5 billion yuan.
However, compared with the stock price peak in February this year, CDF China has lost more than 300 billion yuan in market value in the past nine months.
Analyzing its performance and looking at it quarterly, CDFG continued its high growth trend in the second quarter of this year, but its net profit in the second quarter fell 12.57% from the first quarter.Hainan’s tourism in the second quarter was relatively flat compared to the first quarter, with relatively high netinterest rateThe proportion of outlying islands’ duty-free business decreased.
From the performance of previous years, the first quarter is the peak season for tourism in Hainan, and the first quarter of CDF is usually the highest single-quarter performance of the whole year.
In the third quarter, CDC ChinaOperating income13.972 billion yuan, a year-on-year decrease of 11.73%; net profit attributable to the parent was 3.132 billion yuan, a year-on-year increase of 40.22%.
It can be seen that in the third quarter of China CDF has “increased profit but not income” phenomenon. This kind of performance composition is mainly affected by the summer epidemic, and Hainan’s offline tax-free sales are under pressure. The reason for the company’s “increasing profits” is mainly due to tax incentives and rent reductions at the Capital Airport. After excluding these two factors, the net profit growth rate was actually lower than expected.
However, there are still manyBrokerageResearch reportOptimistic about CDFG’s future growth space.likeTianfeng SecuritiesA recent research report pointed out that the fourth quarter of Hainan’s duty-free consumption is about to enter the peak season, and CDFG’s sales are expected to continue to improve in the fourth quarter. On the one hand, the company is listed on the Hong Kong Stock Exchange to increase its international expansion. On the other hand, it accelerates the expansion of Sanya Duty Free City and the construction of Haikou International Duty Free City.
(Article source: e company)