Market review last week:
Last week (December 27-december 31), the social service sector (Shenwan) rose 4.88%, the Shanghai Composite Index rose 0.60%, the Shenzhen Component Index rose 1.00%, and the Shanghai and Shenzhen 300 rose 0.56%. The social service sector outperformed the Shanghai Composite Index by 4.26 percentage points last week, ranking first among the weekly increases and decreases of Shenwan’s 35 primary sub industries.
Core view: China tax exemption force international layout, trial operation of the first duty-free shop in Macao
On December 31, 2021, China Tourism Group put CDF Macau shanglisboa store, the first duty-free store in Macao, into trial operation. The store has a wide range of products, including all the tax exempt items except tobacco, such as watches, perfume, fashion, famous wines, specialty foods, souvenirs, etc. The brands involved include more than 170 world-famous luxury brands, such as Cartier, Balenciaga, Valentino, Dior, Chloe, etc. The store design has a typical surrealistic style, and strives to improve customers’ shopping experience and create an ideal shopping space through artistic beauty and visual impact. As an overseas flagship project, the store represents the company’s deep participation in the construction of Guangdong, Hong Kong and Macao Bay area, and also highlights the strong advantages of China free in brand cooperation and supply chain, reflecting its continuous efforts in international development strategy under the leadership of its parent company.
Company announcement and industry information:
Huatian Hotel Group Co.Ltd(000428) : it is proposed to transfer part of the creditor’s rights of the wholly-owned subsidiary Changsha Huadun of RMB 917 million and 100% equity of the subsidiary Changchun Huatian; Utour Group Co.Ltd(002707) : Alibaba network receives Utour Group Co.Ltd(002707) 37009442 shares and 17764281 shares held by Mr. Feng bin and Mr. Guo Hongbin at RMB 4.41 per share, accounting for about 6.04% of the total share capital of the listed company; Guangzhou Lingnan Group Holdings Company Limited(000524) : Guangzhou Municipal People’s government will transfer 90% of the equity of Lingnan group to Guangzhou commercial control free of charge, and Guangzhou commercial control will become the indirect controlling shareholder of the company; China Cyts Tours Holding Co.Ltd(600138) : the subsidiary Wuzhen tourism received a financial subsidy of 143429440.18 yuan from Tongxiang City.
Investment suggestions:
Duty free industry: we are optimistic about the relatively clear recovery trend of the duty-free industry under the support of passenger flow recovery. Related targets are China Tourism Group Duty Free Corporation Limited(601888) which is expected to show a recovery in revenue and profit after the recovery of passenger flow.
Hotel Industry: the upgrading of industry structure and chain trend are obvious, the leading hotel group has obvious brand, scale and management advantages, and there is good growth space in the future. Related targets include leading enterprises Shanghai Jin Jiang International Hotels Co.Ltd(600754) , Btg Hotels (Group) Co.Ltd(600258) , and Huazhu group.
Catering and Tourism: under the epidemic situation, the industry recovery is under short-term pressure, and the industry chain trend is obvious. Pay attention to the store expansion and business performance of leading catering enterprises. The relevant targets are seabed fishing, sipping and sipping.
Risk tips:
Repeated epidemic impact; Macroeconomic fluctuations; Policy regulatory risk.
