Shanghai Airport Counts On Duty-Free Shops for Valuation Premium
- Stock has almost doubled on retail revenue growth since 2017
- Correction may come if retail lease deal disappoints
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Shanghai International Airport Co., the world’s fourth-largest listed airport operator by market value, has seen its shares rally despite cooling passenger traffic growth. Now, its duty-free shops hold the key for investors to determine if the stock deserves a valuation premium.
Shares of the operator of the Shanghai Pudong International Airport, mainland China’s second largest by passengers, have almost doubled since the start of 2017, driven by steady earnings growth. That compares with a 1 percent drop for the broader Shanghai stock index, and a 51 percent gain at Hong Kong-traded Beijing Capital International Airport Co.