Industry views and investment suggestions
Affected by International Geopolitics this week, the A-share shock intensified, the epidemic spread in many places in China, the social service industry continued to be under pressure, tourism, hotel, tax-free and other tourism related stocks generally fell significantly, and education industry stocks rebounded.
The temperature has warmed up and the tourism industry has ushered in the peak season. Recently, the temperature across the country began to rise. With the arrival of spring, the tourism industry began to go out of the off-season, and the surrounding tours and self driving tours with the theme of flower appreciation and spring outing and outdoor hiking began to heat up. Last week, the national policy for the recovery and development of the service industry was issued to support the tourism, catering, retail and other industries greatly affected by the epidemic, which is expected to drive the further recovery of the industry. It is suggested to pay attention to scenic spot stocks focusing on peripheral tourism.
Inter provincial team travel policy is expected to be relaxed. In the notice on actively responding to covid-19 pneumonia and further strengthening the management of inter provincial tourism issued by the Ministry of culture and tourism in August 2021, it was proposed that in case of medium and high-risk areas in each province, the inter provincial team tour of the province would be suspended until the medium and high-risk areas in the Province were cleared. Since the second half of 2021, the epidemic has spread in many provinces and places in China, and inter provincial team tours have occurred from time to time, affecting the continuous recovery of China’s tourism. In the context of the current accurate epidemic prevention and control, recently, the Tourism Research Institute and a number of industry media collectively said that the inter provincial circuit breaker is expected to be replaced by more accurate prevention and control measures, which is expected to promote the recovery of China’s tourism, especially long-term tourism.
Investment suggestion: continue to be optimistic about the development space of China’s tax-free industry and continue to recommend China Tourism Group Duty Free Corporation Limited(601888) . In addition, focus on recommending the leaders of fine molecule industry Beijing Career International Co.Ltd(300662) , Btg Hotels (Group) Co.Ltd(600258) , Songcheng Performance Development Co.Ltd(300144) .
Plate Market
In the current period (from February 21 to February 25), the leisure service industry index fell by 3.14%, while the CSI 300 index fell by 1.67% in the same period. The leisure service industry index underperformed the CSI 300 index by 1.47pct, ranking 22nd among the 28 Shenwan industries.
Risk tips: systemic risk, epidemic risk, policy promotion, lower than expected business conditions and other risks.
