＜Research＞BOCI Lowers CTG DUTY-FREE/ HWORLD-S TPs to $68/ $34.7

　　China's tourism industry is likely to be sluggish in 2Q24 due to unfavorable weather and weak consumer confidence, BOCI released a research report saying.

　　BOCI expected that 3Q24 may continue the weakness of 2Q24, while leisure travel may be weaker than the market's prior forecast. Therefore, BOCI expected that the industry's 2Q24 earnings may have the risk of missing expectations, leading to more cautious guidance for 2H24.

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　　BOCI's top pick for the sector is TRIP.COM-S (09961.HK) -2.000 (-0.588%) Short selling $126.00M; Ratio 22.899% (TCOM.US) , forecasting its business expansion for its outbound travel and overseas platform could offset the weakness in domestic travel.

　　The broker rated both TRIP.COM-S' H-share and US stock at Buy, with a target price for H-share of $497. In addition, BOCI lowered its FY2024-FY2026 earnings forecasts for CTG DUTY-FREE (01880.HK) -1.050 (-1.907%) Short selling $2.96M; Ratio 3.293% by 21-23%, and slashed its target price for the stock's H-share from $108 to $68.

　　BOCI also reduced its FY2024-FY2026 EBITDA forecasts for HWORLD-S (01179.HK) -0.450 (-1.844%) Short selling $8.16M; Ratio 19.356% by 3-4%, and cut its H-share target price to $34.7 from $35.9. The broker believed that HWORLD-S may give a more prudent full-year guidance due to the continuous deterioration in Chinese hotels.

　　BOCI kept rating at Buy for the H-shares of CTG DUTY-FREE and HWORLD-S.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-26 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

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