China Tourism Group Duty Free (601888.SS)
Consumer · Shanghai · China
Fundamentals
Valuation and ratings
China Tourism Group Duty Free trades at CN¥54.41, which is 37% below the CN¥74.30 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 44 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 27.3 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About China Tourism Group Duty Free
China Tourism Group Duty Free Corporation Limited engages in duty-free tourism retail business in China. The company engages in the wholesale and retail of duty-free commodities, such as tobacco, alcohol, cosmetics, watches and jewelry, apparel and bags, and electronic products, as well as food. It is also involved in the investment and development of commercial complexes for duty-free businesses. The company was formerly known as China International Travel Service Corporation Limited and changed its name to China Tourism Group Duty Free Corporation Limited in June 2020. The company was founded in 2008 and is based in Beijing, China. China Tourism Group Duty Free Corporation Limited operates as a subsidiary of China Tourism Group Co., Ltd.
601888.SS passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is China Tourism Group Duty Free (601888.SS) undervalued?
Against our discounted cash flow estimate of CN¥74.30, 601888.SS at CN¥54.41 is 37% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is 601888.SS's P/E ratio?
601888.SS trades at 27.3 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.