UBS has issued a research report stating that CTG DUTY-FREE (01880) experienced a narrower year-over-year revenue decline in the second quarter, though the improvement fell short of market expectations. Additionally, the company's gross margin and net profit margin deteriorated due to increased sales costs and expenses. As a result, UBS has lowered its earnings per share forecasts for the company by 14-12% for the years 2025 to 2027. The firm reaffirmed its "Buy" rating while raising the price target from HK$58.4 to HK$71.2. UBS expects that, due to a lower base, CTG DUTY-FREE's Hainan duty-free store sales will decline by 1% in the second half of the year before turning positive in the fourth quarter. If customer average spending stabilizes, the bank projects that the company's Hainan sales will grow by 5% and 10% year-over-year in 2026 and 2027, respectively.