Hong Kong-listed shares of CTG DUTY-FREE (01880) face headwinds as its preliminary earnings guidance falls short of market expectations. According to CLSA analysis, the duty-free giant continues to grapple with compressed profit margins despite revenue recovery. The persistent pressure stems from intensified industry competition and ongoing operational cost challenges. While domestic travel demand shows signs of improvement, aggressive pricing strategies by rivals and rising operating expenses constrain profitability expansion. Management's strategic focus on premium product categories and digital transformation has yet to fully offset these margin pressures. Investors should monitor upcoming quarterly results for concrete evidence of margin stabilization amid evolving market dynamics.