Key investment points:
Market review: from December 6 to December 10, 2021, the SW leisure service industry index rose by 9.47% as a whole, ranking first among all Shenwan industry indexes, outperforming the Shanghai and Shenzhen 300 index by about 6.32 percentage points over the same period. All segments of SW leisure service industry rose, with comprehensive tourism, scenic spots, other leisure services and hotels rising 11.37%, 8.53%, 5.79% and 3.48% respectively, outperforming the Shanghai and Shenzhen 300 index. There were 28 listed companies with positive earnings in the industry, and the top five were Beijing Fengshangshiji Culture Media Co.Ltd(300860) , China Tourism Group Duty Free Corporation Limited(601888) , Jiangsu Tianmu Lake Tourism Co.Ltd(603136) , Shanghai Jin Jiang International Hotels Co.Ltd(600754) , Btg Hotels (Group) Co.Ltd(600258) , up 50.23%, 12.56%, 6.69%, 6.59% and 5.59% respectively. Nine listed companies achieved negative returns. The top five listed companies were Guangzhou Lingnan Group Holdings Company Limited(000524) , Caissa Tosun Development Co.Ltd(000796) , St tengbang, St Shengya and St Haichuang, down 0.86%, 0.95%, 2.69%, 2.73% and 3.25% respectively.
Industry operation data: as of December 10, 2021, the vaccination volume of covid-19 vaccine per 100 people in China has reached 179.47 doses, the cumulative vaccination volume of covid-19 vaccine has reached 2.603 billion doses, and the average covid-19 vaccination volume in seven days is about 8.44 million doses. The total amount of covid-19 vaccination per 100 people in the world reached 106.75 doses, of which the complete vaccination rate of covid-19 vaccine per 100 people reached 45.35%, and the daily covid-19 vaccination volume reached 34.4923 million doses. In terms of tax exemption for outlying islands, from November 29 to December 5, 2021, the number of civil aviation inbound and outbound flights at Sanya Phoenix Airport reached 2313, up 6.49% month on month, down 11.51% from the same period in 2019; The number of inbound and outbound flights of Haikou Meilan International Airport reached 2744, up 5.66% month on month, down 16.21% compared with the same period in 2019. The number of inbound and outbound flights of Hainan civil aviation continued to rise month on month this week.
Industry perspective: maintain the recommended rating of the industry. Affected by the approval of the first domestic covid-19 specific drug and the better than expected preliminary data results of Omicron variant virus, the industry valuation rebounded significantly this week. However, many places have begun to call for local Chinese New Year celebrations. The short-term leisure service industry is under pressure, waiting for the opportunity to repair the industry valuation after the post holiday epidemic is controlled. We can pay careful attention to the medium and long-term benefits from consumption upgrading and consumption return, Tax exempt leaders China Tourism Group Duty Free Corporation Limited(601888) (601888) with a significant pick-up in the number of tourists in Hainan; chain hotel leaders Shanghai Jin Jiang International Hotels Co.Ltd(600754) (600754), Btg Hotels (Group) Co.Ltd(600258) (600258) with high proportion of franchise stores and stable performance; and artificial scenic spot leaders Songcheng Performance Development Co.Ltd(300144) (300144) with good performance recovery elasticity after the epidemic is controlled.
Risk warning: macroeconomic fluctuations are downward; Changes in industrial policies; Repeated epidemic situation; Global vaccination is less than expected.
