Market review: from February 28 to March 4, 2022, CITIC consumer service industry index fell by 1.25% as a whole, ranking 27th among all CITIC primary industry indexes, outperforming the Shanghai and Shenzhen 300 index by about 0.43 percentage points in the same period. Among the segments of CITIC’s consumer service industry, the hotel catering and education sectors rose by 5.79% and 0.02% respectively, outperforming the CSI 300 index; Comprehensive services, tourism and leisure sectors fell 1.79% and 2.91% respectively, underperforming the CSI 300 index. There were 43 listed companies with positive earnings in the industry, and the top five were Shanghai Xinnanyang Only Education & Technology Co.Ltd(600661) , China United Travel Co.Ltd(600358) , Dalian My Gym Education Technology Co.Ltd(002621) , Btg Hotels (Group) Co.Ltd(600258) , Caissa Tosun Development Co.Ltd(000796) , up 18.15%, 17.89%, 12.57%, 9.43% and 9.27% respectively. There were 11 companies that achieved negative returns, among which the top five listed companies were Guangzhou Shiyuan Electronic Technology Company Limited(002841) , Sansheng Intellectual Education Technology Co.Ltd(300282) , Beijing Career International Co.Ltd(300662) , China Tourism Group Duty Free Corporation Limited(601888) , Zhejiang Ssaw Boutique Hotels Co.Ltd(301073) , down 2.23%, 3.25%, 3.99%, 4.13% and 6.18% respectively. As of March 4, 2022, the overall PE (TTM, overall method) of CITIC’s consumer service industry was about 40.45 times, slightly lower than last week and 46.74 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 are 35.8 times, 56.36 times, 52.86 times and 59.56 times respectively.
Industry operation data: as of March 4, 2022, the vaccination volume of covid-19 vaccine per 100 people in China has reached 218.28 doses, the cumulative vaccination volume of covid-19 vaccine has reached 3.152 billion doses, and the average covid-19 vaccination volume in seven days is about 5.3996 million doses. The total amount of covid-19 vaccination per 100 people in the world reached 137.63 doses, of which the complete vaccination rate of covid-19 vaccine per 100 people reached 55.83%, and the daily covid-19 vaccination volume reached 220272 million doses.
Relevant policies of the two sessions: the government work report proposes to promote the sustained recovery of consumption. We will increase residents’ income through multiple channels, improve the income distribution system and enhance consumption capacity. Promote the deep integration of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) consumption, promote the recovery of life service consumption, and develop new consumption formats and models. In addition, for tourism and other industries, the government work report clearly mentioned that it is necessary to promote the reduction of production and operation costs of enterprises, including helping industries seriously affected by the epidemic, such as catering, accommodation and tourism, with preferential policies.
Industry perspective: maintain the recommended rating of the industry. The two sessions clearly pointed out the need to promote the reduction of production and operation costs of enterprises, including providing assistance to industries seriously affected by the epidemic, such as catering, accommodation and tourism. Since the outbreak of the epidemic, the government work report clearly pointed out that we should strengthen the assistance to the industries damaged by the epidemic, and all government departments are expected to introduce corresponding tax reduction and fee reduction policies to reduce the pressure on the industry. Recommend key scenic spot companies Jiangsu Tianmu Lake Tourism Co.Ltd(603136) ( Jiangsu Tianmu Lake Tourism Co.Ltd(603136) ), Emei Shan Tourism Company Limited(000888) ( Emei Shan Tourism Company Limited(000888) ), Songcheng Performance Development Co.Ltd(300144) ( Songcheng Performance Development Co.Ltd(300144) ), etc., which directly benefit from the favorable policies of industry burden reduction and relief; The recommendation concentration has increased rapidly, benefiting from the fast 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; The promotion of relevant policies is less than expected; Repeated outbreaks and other risks.
