Wangfujing Wins Bid for Beijing Capital Airport T2 Duty-Free Project: Analysis of Transformation and Performance Impact

1. Wangfujing won the bid for the duty-free project (Section 02) at Terminal 2 of Beijing Capital International Airport, with a guaranteed operating fee of 113 million yuan in the first year and a 5% sales commission, and the operating period runs until February 10, 2034. This marks its first foray into duty-free business at a domestic ultra-large international hub airport, providing significant upgrading opportunities in terms of traffic and brand [1][2]. The project leverages the high-frequency “airport + duty-free” scenario and is expected to expand the scale of duty-free business under conditions of sufficient traffic and high average customer spending.
2. As a traditional department store enterprise, Wangfujing has been transforming through formats such as duty-free, shopping malls, and outlets in recent years. This bid reflects the company’s strategic path of “duty-free as core + multi-format synergy” and is an important step in competing head-on with industry leaders in core airport channels [1].

1. Return from Guaranteed Operating Fee and Sales Commission
   • The first-year guarantee of 113 million yuan is equivalent to the minimum independent contribution to revenue; based on the 5% commission ratio, if the annual sales of this terminal reach 4 billion yuan, the commission income will be 200 million yuan (total of 313 million yuan including guarantee + commission), which will have a certain pulling effect on the current overall revenue base.
   • The recovery of T2 passenger flow is a key variable. Beijing Airport expects passenger volume to exceed 70 million in 2025, with international and regional passengers exceeding 17 million, a year-on-year increase of 17%. This indicates that duty-free shopping demand in the airport business district is expected to continue to recover in the next 2-3 years, providing quantifiable sales elasticity for Wangfujing [1].

2. Marginal Profit and Gross Margin Improvement
   • The duty-free business has a higher gross margin compared to traditional department stores, and the increase in centralized procurement and direct procurement ratio in the supply chain is expected to ease the downward pressure on the company’s overall gross margin. If it replicates the experience of Hainan or other airport projects, the single-store gross margin can be maintained above 30%, which is a significant premium over the group’s average department store gross margin (about 20%), and will improve the company’s weighted average gross margin from the profit structure.

3. Cash Flow and Capital Expenditure
   • Although the duty-free project requires initial investment in decoration, brand introduction, and inventory funds, due to the long operating period (nearly 9 years) and fast turnover of duty-free categories, the unit capital recovery cycle is short. The overall cash payback period is expected to be within 18-24 months, which will significantly contribute to the improvement of operating cash flow.
   • The current stock price (15.46 yuan) basically reflects the valuation during the transformation period. If the duty-free business revenue grows at a compound annual growth rate of more than 15% in the next three years, it can gradually improve the market’s expectation of performance certainty [0].

1. EBIT Valuation Space
   • From 2024 to the beginning of 2025, the stock price range was 11.66-17.08 yuan with an annualized volatility of 34.3%, indicating that the market is still in a wait-and-see stage regarding its duty-free transformation process and lacks continuous catalysts [0]. If the T2 project starts to contribute stably in 2026 and drives the duty-free revenue share to exceed 30%, a new valuation re-rating logic can be formed (shifting from low valuation of traditional department stores to high-margin, new consumption track).
2. Valuation Comparison
   • The current price-earnings ratio has not yet broken through the traditional department store range. If the duty-free business reaches the “visible growth” range, the valuation may move closer to duty-free targets such as China Duty-Free (refer to industry drivers: optimization of duty-free store policies and development of Hainan Free Trade Port to increase industry gross margin space). This requires several medium-to-large projects to generate sustained cash flow in the next 1-2 years.

1. Execution and Passenger Flow Variables
   : Whether the duty-free project can reach the budgeted sales volume and average customer price depends on the recovery of international passengers, brand portfolio, and airport supporting services. If the recovery is less than expected, it may limit commission income and marginal profit.
2. Competition and Rent Pressure
   : There is already strong competition in airport duty-free, and it will face the entry of deep-pocketed players such as China Duty-Free and Switzerland’s LVMH in the future. Continuous investment is needed in high-end brand resources and supply chain bargaining power.
3. Capital and Inventory Pressure
   : The duty-free business requires large-scale stock preparation and deposits. Poor management will lead to an increase in working capital occupation. It is recommended to closely monitor the inventory turnover rate, payment collection rhythm, and cash flow performance after the actual signing of the project.

• Chart 1: Wangfujing (600859.SS) 2024/2025 Stock Price Trend and Trading Volume
  
  Description: The chart shows the daily stock price and 20/60/120-day moving average trends from January 2024 to December 2025, with a trading volume histogram superimposed. The X-axis is the date (marked by quarter), and the Y-axis is the stock price (yuan) and trading volume (10,000 shares). The price shows a震荡 consolidation trend under policy and project landing news, and the current price is close to the 120-day moving average, indicating that the market is still weighing the transformation pace.
  Chart Link:
  Data Source: Jinling AI Securities API Data [0].

1. The Beijing Capital Airport T2 duty-free project provides Wangfujing with its first model store in a domestic top-tier airport, which is an important “milestone” in its duty-free business transformation and will drive revenue growth and gross margin improvement in the medium to long term.
2. The project will not significantly affect 2025 performance in the short term (confirmed in the announcement), but if large-scale volume is achieved starting from 2026, it will become a key catalyst for valuation re-rating.
3. If it can form synergy in multiple tracks such as airport duty-free, Hainan duty-free, and downtown duty-free in the future, investors can focus on sales commission elasticity, inventory management, and cash flow performance, and compare the valuation and profit indicators of duty-free leaders to determine whether the company has reached the critical point of the “high growth + high valuation” combination.
4. It is recommended to focus on tracking the signing of the formal contract for the duty-free project, decoration progress, brand introduction, actual passenger flow and sales data, as well as management’s explanations on commission ratio and inventory turnover, combined with the profit contribution during the future financial report confirmation period. If more detailed income forecasts and DCF calculations are needed, consider launching the
   in-depth research mode
   to obtain support from professional securities firm databases.

[0] Jinling AI Securities API Data (including stock prices, technical indicators, chart data)
[1] East Money - “Winning the 113 Million Yuan Duty-Free Project at Capital Airport: Wangfujing’s Duty-Free Business Expands Again” (https://wap.eastmoney.com/a/202512283603757375.html)
[2] Guandian.cn - “Wangfujing Wins Bid for Capital Airport T2 Terminal Duty-Free Project” (https://www.guandian.cn/m/show/533943)