Market review: from March 14 to March 18, 2022, CITIC consumer service industry index fell by 2.09% as a whole, ranking 19th among all CITIC primary industry indexes, losing about 1.15 percentage points to the CSI 300 index in the same period. Among the segments of CITIC consumer service industry, the hotel catering sector rose 3.08%, outperforming the CSI 300 index, while the comprehensive services, tourism and leisure and education sectors fell 1.52%, 2.76% and 3.8% respectively, outperforming the CSI 300 index. There were 32 listed companies with positive earnings in the industry, and the top five were Guangzhou Lingnan Group Holdings Company Limited(000524) , Zhejiang Ssaw Boutique Hotels Co.Ltd(301073) , Xi’An Qujiang Cultural Tourism Co.Ltd(600706) , Utour Group Co.Ltd(002707) , Dark Horse Technology Group Co.Ltd(300688) , up 35.11%, 20.48%, 13.26%, 11.46% and 11.28% respectively. There were 22 companies that achieved negative returns, among which the top five listed companies were Guangzhou Shiyuan Electronic Technology Company Limited(002841) , China Tourism Group Duty Free Corporation Limited(601888) , Offcn Education Technology Co.Ltd(002607) , Guangzhou Restaurant Group Company Limited(603043) , Dalian My Gym Education Technology Co.Ltd(002621) , down 5.16%, 5.44%, 5.62%, 5.64% and 14.04% respectively. As of March 18, 2022, the overall PE (TTM, overall method) of CITIC’s consumer service industry was about 35.52 times, slightly lower than last week and 46.68 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 31.33 times, 52.51 times, 44.87 times and 54.77 times respectively.
Industry operation data: as of March 18, 2022, the vaccination volume of covid-19 vaccine per 100 people in China has reached 222.87 doses, the cumulative vaccination volume of covid-19 vaccine has reached 3.219 billion doses, and the average covid-19 vaccination volume in seven days is about 4.7824 million doses. The total amount of covid-19 vaccination per 100 people in the world reached 139.51 doses, of which the complete vaccination rate of covid-19 vaccine per 100 people reached 57.07%, and the daily covid-19 vaccination volume reached 170267 million doses.
Key industry news: (1) the Ministry of culture and tourism held a covid-19 epidemic prevention and control group meeting, emphasizing that class a scenic spots should strictly implement the requirements of “limit, reservation and peak staggering” and implement the ticket reservation system. Travel agencies and online tourism enterprises should strictly implement the “circuit breaker” mechanism for the management of inter provincial tourism business activities, and suspend the inter provincial team tourism and “air ticket + Hotel” business entering and leaving land border port cities. (2) The latest version of covid-19 diagnosis and treatment plan provides cases for classified admission. (3) The National Health Commission said it should firmly hold the bottom line of the epidemic without large-scale rebound.
Industry perspective: maintain the recommended rating of the industry. This week, the consumer service industry in China is under pressure. The Health Council has released the New Coronavirus pneumonia treatment plan (trial version ninth) to reduce the isolation requirements and increase the COVID-19 drugs and release the positive signals. However, the health committee said it would stick to the bottom line of keeping the epidemic from scaling up, and it would take time to relax the prevention and control policy. It is suggested to pay attention to the 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) ), which are expected to benefit from the relief and tax reduction policies in the future, and China Tourism Group Duty Free Corporation Limited(601888) ( China Tourism Group Duty Free Corporation Limited(601888) ) with low current valuation and large follow-up repair space.
Risk warning: macroeconomic downturn; Changes in industrial policies; The promotion of relevant policies is less than expected; Repeated outbreaks and other risks.
