Market review: from February 21 to February 25, 2022, CITIC consumer service industry index fell by 3.74% as a whole, ranking the 24th among all CITIC primary industry indexes, underperforming the CSI 300 index by about 2.07 percentage points in the same period. Among the segments of CITIC consumer service industry, in addition to the education sector rising by 3.01%, the comprehensive services, tourism and leisure, hotel and catering sectors fell by 2.2%, 5% and 5.43% respectively, all underperforming the CSI 300 index. There were 16 listed companies with positive earnings in the industry, and the top five were Kaiyuan Education Technology Group Co.Ltd(300338) , Dalian My Gym Education Technology Co.Ltd(002621) , Shanghai Xinnanyang Only Education & Technology Co.Ltd(600661) , Offcn Education Technology Co.Ltd(002607) , Jiangsu Chuanzhiboke Education Technology Co.Ltd(003032) , up 16.19%, 9.69%, 8.57%, 7.79% and 5.39% respectively. There were 38 companies that achieved negative returns, among which the top five listed companies were Tongqinglou Catering Co.Ltd(605108) , Anhui Jiuhuashan Tourism Development Co.Ltd(603199) , Xi’An Qujiang Cultural Tourism Co.Ltd(600706) , Huatian Hotel Group Co.Ltd(000428) , Utour Group Co.Ltd(002707) , down 8.41%, 8.57%, 10.57%, 10.77% and 11.46% respectively. As of February 25, 2022, the overall PE (TTM, overall method) of CITIC’s consumer service industry was about 41 times, slightly lower than last week and 46.75 times lower than the average valuation of the industry since 2016. The PE (TTM) of tourism and leisure, hotel catering, education and comprehensive service sectors were 37.06 times, 53.89 times, 52.93 times and 59.66 times respectively.
Industry operation data: as of February 25, 2022, the covid-19 vaccination volume per 100 people in China has reached 21566 doses, the cumulative covid-19 vaccination volume has reached 3.119 billion doses, and the average covid-19 vaccination volume in seven days is about 5552900 doses. The total amount of covid-19 vaccination per 100 people in the world reached 135.67 doses, of which the complete vaccination rate of covid-19 vaccine per 100 people reached 55.48%, and the daily covid-19 vaccination volume reached 295057 million doses.
Prospect of the two sessions: since 2017, the government work reports of the two sessions have repeatedly proposed to release the potential of China’s tourism market to develop and expand the tourism industry by implementing the paid vacation system and improving tourism facilities and services based on expanding domestic demand. It is believed that the tax-free industry will become an important business card to attract overseas consumption and expand domestic demand at the current stage with competitive prices. It is expected to introduce corresponding policies during the two sessions in 2022 to further support the development of China’s tax-free industry.
Industry perspective: maintain the recommended rating of the industry. This week, the Australian border was reopened, the German Frankfurt route was opened in Jinan, the global tourism industry was relaxed and steadily promoted, and the impact of covid-19 epidemic on the global tourism industry was gradually weakened. However, sporadic outbreaks broke out in many provinces such as Guangdong, Inner Mongolia and Hubei, which put pressure on Tourism in the short term. The two sessions will be held soon. From the perspective of the tourism related tasks of the two sessions in recent years, expanding domestic demand is an important basis for the development of tourism at the current stage. We expect that the tax-free industry will become an important famous film to attract overseas consumption and expand domestic demand at the current stage with competitive prices. It is expected to introduce corresponding policies during the two sessions in 2022, Further support the development of China’s tourism duty-free industry. Recommend tax-free faucet China Tourism Group Duty Free Corporation Limited(601888) ( China Tourism Group Duty Free Corporation Limited(601888) ); The recommendation concentration has increased rapidly, benefiting from the recovery of tourism industry, such as chain hotel leaders Shanghai Jin Jiang International Hotels Co.Ltd(600754) ( Shanghai Jin Jiang International Hotels Co.Ltd(600754) ), Btg Hotels (Group) Co.Ltd(600258) ( Btg Hotels (Group) Co.Ltd(600258) ), etc.
Risk warning: macroeconomic downturn; Changes in industrial policies; Repeated outbreaks and other risks
