Understanding the Market | MEILAN AIRPORT fell over 6%, Hainan's closure time has been set, institutions say there is uncertainty regarding the impact on offshore duty-free
Meilan Airport's stock price fell over 6%, down 6.26% as of the time of writing, at HKD 11.08, with a trading volume of HKD 62.6106 million. The closure date for Hainan Free Trade Port is set for December 18, 2025, and there is uncertainty regarding the impact of the offshore duty-free policy. Huachuang Securities expects Meilan Airport to achieve a net loss attributable to the parent company of HKD 380 million in 2024, but with the closure and the increase in Phase II capacity, the operating conditions are expected to improve. Hainan Airport plans to acquire controlling interest in Meilan Airport, and after the transaction, it will hold at least 50.19% equity
According to Zhitong Finance APP, Meilan Airport (00357) has fallen over 6%, down 6.26% to HKD 11.08 as of the time of writing, with a trading volume of HKD 62.6106 million.
In terms of news, Wang Changlin, Deputy Director of the National Development and Reform Commission, stated at a press conference on July 23 that the specific date for the closure of Hainan Free Trade Port, approved by the Central Committee of the Communist Party of China, is set to officially start on December 18, 2025. WanLian Securities previously pointed out that there is still uncertainty regarding the positioning and business impact of the offshore duty-free policy due to the closure. On one hand, the closure will enhance Hainan's overall attractiveness and international tourist flow, bringing new customers to the offshore duty-free market; on the other hand, the overall price decline of imported goods may weaken the price advantage of duty-free products, and the "first-line opening" will intensify international competition in the duty-free market.
Huachuang Securities previously released a research report stating that Meilan Airport is expected to incur a net loss attributable to the parent company of HKD 380 million in 2024, mainly due to the depreciation and amortization of assets related to the Phase II expansion project, increased operating costs, and arbitration compensation. As Hainan Free Trade Port achieves operational closure by the end of 2025 and the Phase II capacity continues to ramp up, Meilan Airport's operating conditions will gradually improve, thereby enhancing the company's performance. It is worth noting that Hainan Airport plans to acquire controlling interest in Meilan Airport. After the transaction is completed, Hainan Airport and its wholly-owned subsidiary in Hong Kong will collectively hold at least 50.19% of the shares in Meilan Airport, becoming the controlling shareholder of Meilan Airport
