Citigroup has released a research report maintaining a "Buy" rating, assigning a target price of HKD 100 for CTG DUTY-FREE's H-shares (01880) and CNY 106 for its A-shares (601888.SH), anticipating that strong duty-free sales in Hainan will serve as a short-term catalyst. CTG DUTY-FREE announced an acquisition of DFS's Greater China retail business for no more than USD 395 million, which includes nine travel retail stores in Hong Kong and Macau, along with intangible assets. Concurrently, the company will issue a maximum of approximately 11.9675 million new H-shares at HKD 77 per share to Delphine SAS, a subsidiary of LVMH, and Shoppers, owned by the Miller family who co-founded DFS, representing about 0.57% of the total share capital, raising a net amount not exceeding HKD 924 million. The bank views this move as strategically significant for CTG DUTY-FREE, aiding in further solidifying its market leadership in Greater China, enhancing retail capabilities, and promoting the globalization of domestic Chinese brands, while having a limited short-term financial impact. The bank also expects that bringing LVMH on board as a shareholder and strategic partner will strengthen CTG DUTY-FREE's advantages in the supply of luxury goods.