Market review last week:
Last week (March 21-march 25), the social service sector (Shenwan) fell by 2.60%, the Shanghai Composite Index fell by 1.19%, the Shenzhen Component Index fell by 2.08%, and the Shanghai and Shenzhen 300 fell by 2.14%. The social service sector lost 1.41 percentage points to the Shanghai composite index last week, ranking 26th among the weekly rises and falls of Shenwan’s 34 primary sub industries.
Core view:
According to EURONET, on March 12 local time, Julia Simpson, President of the world tourism and Travel Council (WTTC), said that the WTTC fully supported the end of all current restrictions on travel in the EU and Schengen. Meanwhile, Iceland, Norway, Slovenia, Hungary, Ireland and Romania have abolished entry regulations related to the epidemic. Vietnam, New Zealand, the Philippines, Singapore and other countries have also successively introduced corresponding measures on opening borders and relaxing restrictions. Globally, many countries’ policies on entry-exit restrictions have been cancelled or gradually relaxed, and the recovery of international tourism boom is expected. The China New Coronavirus pneumonia diagnosis and treatment plan (trial version ninth) has been released. In some cases, the shortening of isolation time, the application of antigen detection, the adjustment of the isolation / discharge standard, and the increase of Pfizer oral small molecules in treatment methods all highlight the rapid progress of the national epidemic prevention and control and epidemic treatment. We believe that with the gradual improvement of covid-19 epidemic situation around the world and the continuous promotion of border opening measures by various countries, the recovery of international tourism boom is expected. The performance of China’s tourism, duty-free, hotel, catering and other related industries is also expected to be continuously repaired with the continuous improvement of comprehensive prevention and control ability and treatment methods.
Company announcement and industry information:
Utour Group Co.Ltd(002707) : the cumulative number of shares repurchased is 22008826, accounting for 2.4282% of the company’s latest total share capital of 906371073, and the total transaction amount is 11294909102 yuan (excluding transaction expenses) Tempus Global Business Service Group Holding Ltd(300178) : the auction was suspended due to the epidemic, and the auction was postponed until 10:00 on April 30, 2022 to 10:00 on May 1, 2022 (except for the delay) Guangzhou Lingnan Group Holdings Company Limited(000524) : the company’s current provision for asset impairment is 3419134262 yuan, and the amount of written off assets is 10485427 yuan, which affects the current company’s net profit of 2973656750 yuan, accounting for 23.27% of the company’s audited net profit attributable to shareholders of Listed Companies in 2021 Zhejiang Meorient Commerce & Exhibition Inc(300795) : on the premise of ensuring the daily operation capital demand and capital safety, it is proposed to use its own capital of no more than 200 million yuan for cash management to purchase capital guaranteed financial products with high safety and good liquidity Tibet Tourism Co.Ltd(600749) : the company will use part of the funds not invested in the project construction for cash management. On the premise of ensuring the normal implementation of the raised investment project and the safety of the raised funds, the company will improve the use efficiency of the raised funds, increase the income of the company’s cash assets and maximize the interests of shareholders.
Investment suggestions:
Duty free industry: we are optimistic about the relatively clear recovery trend of the duty-free industry supported by the recovery of passenger flow. The 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 brand, scale and management advantages of leading hotel groups are obvious, 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) , Huazhu group. Catering and Tourism: the trend of industry chain is obvious, and attention is paid to the expansion and business performance of leading catering enterprises. The relevant targets include seabed fishing, sipping and sipping.
Risk tips:
Repeated epidemic impact; Macroeconomic fluctuations; Policy supervision risk.
