Industry views and investment suggestions
Affected by International Geopolitics this week, A-Shares continued to fluctuate downward, and the social service industry was less affected by international political factors and had a certain risk aversion attribute. Hotels, scenic spots, travel agencies and other fine-grained industries generally rose better, while the tax-free industry fell due to the impact of the epidemic.
Sanya duty-free City suspended business, and there was less performance loss on the power line. Recently, covid-19 epidemic spread in Sanya, Hainan. Sanya international duty free city began to temporarily close its stores at 14:00 on March 3, resulting in the adjustment of the share price of the duty-free industry. At present, Sanya Begonia district has completed the second round of regional nucleic acid detection, and all the results are negative. The epidemic situation has been effectively controlled, and it is expected that the duty-free city will resume business in the near future. In addition, during the offline closure, the company continues to make efforts in online live broadcasting and supplementary purchase, which is expected to alleviate the performance loss caused by the closure.
The government work report proposes that the assistance policies for catering, accommodation, retail, tourism, passenger transport and other industries will be tilted. On March 5, Premier Li Keqiang proposed in this year’s government work report to 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 new models. For tourism and other industries, we should promote the reduction of production and operation costs of enterprises, and provide assistance to catering, accommodation, tourism and other industries seriously affected by the epidemic, with preferential policies. Catering, accommodation and tourism industries are an important part of the government to stimulate consumer demand and ensure economic growth. At present, universal measures include tax relief, financial support and reducing production and operation costs. It is expected that subsequent targeted assistance policies will be implemented one after another to provide important support for the recovery of the sector from the epidemic. 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 28 to March 4), the leisure service industry index rose by 2.3%, while the CSI 300 index fell by 1.68% in the same period. The leisure service industry index outperformed the CSI 300 index by 3.98pct, ranking fifth among the 28 Shenwan industries.
Risk tips: systemic risk, epidemic risk, policy promotion, lower than expected business conditions and other risks.
