Market review last week:
Last week (February 14-february 18), the social service sector (Shenwan) fell 0.33%, the Shanghai Composite Index rose 0.80%, the Shenzhen Component Index rose 1.78%, and the Shanghai and Shenzhen 300 rose 1.08%. The social service sector lost 1.13 percentage points to the Shanghai composite index last week, ranking 26th among the weekly increases and decreases of Shenwan’s 35 primary sub industries.
Core view:
On February 18, 2022, the national development and Reform Commission and other departments issued the notice on several policies on promoting the recovery and development of difficult industries in the service industry. Corresponding relief and support measures were put forward for catering, retail, tourism and other industries, and the “Five Prohibitions” were put forward to limit the excessively strict prevention and control measures under the epidemic, such as arbitrarily expanding the scope of travel restrictions and taking centralized isolation control without authorization.
Under the repeated impact of the epidemic, the consumption scenes of tourism, catering, hotel and other industries have been seriously impacted due to travel restrictions and other reasons. At present, the epidemic situation is gradually getting better. The current national requirement of “accurate epidemic prevention” is conducive to avoiding a large number of unnecessary travel and travel restrictions caused by overly strict policies when the epidemic conditions permit, thus hindering the recovery of tourism, catering, hotels, tax-free and other related industries. The current policy has strong support for tourism and related sub industries, such as tax exemption, catering and hotels. The 14th five year plan for tourism development launched by the state reflects the high attention paid to tourism and related industries. At the same time, it looks forward to the entry-exit liberalization allowed by the epidemic. Premier Li Keqiang held an executive meeting of the State Council on February 14, pointing out that for catering Industries with special difficulties, such as retail, tourism, transportation and passenger transport, will increase support in phased tax reduction and deferred payment of some social security fees, and will be exempted from value-added tax on public transport services such as public transport, long-distance passenger transport, ferry and taxi in 2022. We believe that the policy support + epidemic situation has improved, and the prosperity of the industry is expected to accelerate the recovery.
Company announcement and industry information:
China Tourism Group Duty Free Corporation Limited(601888) : China free group will organize more than 200 duty-free stores around the world to appear at the 2022 China International Consumer Goods Expo; Wuhan Sante Cableway Group Co.Ltd(002159) : in order to optimize the company’s asset structure and improve asset liquidity and use efficiency, the company plans to sell no more than 28489900 Tianfeng Securities Co.Ltd(601162) shares; Tibet Tourism Co.Ltd(600749) : the company and its subsidiaries have received a total of 1076200 yuan of government subsidies since March 18, 2021; Anhui Jiuhuashan Tourism Development Co.Ltd(603199) : the company signed the cooperation framework agreement on Shitai County tourism complex project for the development of Shitai County tourism complex project.
Investment suggestions:
Duty free industry: we are optimistic about the relatively clear recovery trend of the duty-free industry supported by the recovery of passenger flow. Related targets are China Tourism Group Duty Free Corporation Limited(601888) which is expected to show a recovery in revenue and profit after the recovery of passenger flow.
Hotel Industry: the upgrading of industry structure and chain trend are obvious, the brand, scale and management advantages of leading hotel groups are obvious, and there is good growth space in the future. Related targets include leading enterprises Shanghai Jin Jiang International Hotels Co.Ltd(600754) , Btg Hotels (Group) Co.Ltd(600258) , and Huazhu group.
Catering and Tourism: the trend of industry chain is obvious, and attention is paid to the expansion and business performance of leading catering enterprises. The relevant targets include seabed fishing, sipping and sipping.
Risk tips:
Repeated epidemic impact; Macroeconomic fluctuations; Policy supervision risk.
