Shares of CTG DUTY-FREE (01880.HK) plunged 5% in intraday trading on Wednesday, following the release of its disappointing 2025 interim results. The company reported a significant decline in both revenue and profit, prompting analysts to lower their expectations for the duty-free retail giant.

According to the financial report, CTG DUTY-FREE's revenue for the first half of 2025 fell 9.96% year-over-year to 28.151 billion yuan. More alarmingly, the net profit attributable to shareholders plummeted 20.68% to 2.622 billion yuan. The company attributed the weak performance to continued adjustments in Hainan's offshore duty-free market, intensifying competition, and pressure on traditional stores from declining customer traffic and repeat purchase rates.

Despite the challenges, CTG DUTY-FREE is actively seeking new growth opportunities. The company is expanding its presence by opening new downtown duty-free stores and exploring overseas markets, including recent entries into Vietnam. However, analysts at Dongwu Securities have lowered their profit expectations for the company, citing ongoing pressure on duty-free consumption demand. While they acknowledge CTG DUTY-FREE's leading position in travel retail, the firm believes that the company's performance will face pressure in the near term, potentially improving through promotional offers and continued market exploration.