CTG DUTY-FREE (01880) saw its shares surge over 7% against the market trend during the trading session. By the time of writing, the stock had climbed 5.04% to HKD 82.25, with a turnover of HKD 221 million.

A research report from UBS indicated that customs data from Haikou shows duty-free sales in Hainan from January 1st to 3rd surged 129% year-on-year to 712 million yuan, while the number of duty-free shoppers increased by 61% annually. The bank estimated the average per capita duty-free spending reached 8,527 yuan, a 42.5% year-on-year increase; the quantity of purchased goods also grew by 52.4% compared to the previous year. All figures surpassed market expectations.

The bank believes the robust sales growth is primarily due to Hainan's relaxation of shopping policy restrictions for local residents and outbound tourists in its duty-free shops last October, which boosted shopper traffic. Concurrently, the significant rise in per capita spending was mainly driven by premium categories such as apparel, footwear, handbags, jewelry, and mobile phone products. Furthermore, local governments continue to provide subsidies for duty-free shopping. The bank expressed a more favorable view on CTG DUTY-FREE's A-shares and H-shares, setting price targets of 99.59 yuan and HKD 90.73 respectively, with a "Buy" rating.