Market review: from March 21 to March 25, 2022, CITIC consumer service industry index fell by 4.20% as a whole, ranking the 30th among all CITIC primary industry indexes, underperforming the CSI 300 index by about 2.06 percentage points in the same period. Among the segments of CITIC’s consumer service industry, the integrated services, hotel catering, tourism and leisure and education sectors rose or fell by – 1.94%, – 2.14%, – 4.90% and – 5.01% respectively. Only the integrated services sector outperformed the CSI 300 index. There were 12 listed companies with positive earnings in the industry, and the top five were Dalian Sunasia Tourism Holding Co.Ltd(600593) , Huatian Hotel Group Co.Ltd(000428) , Dalian My Gym Education Technology Co.Ltd(002621) , Jinling Hotel Corporation Ltd(601007) , Hainan Dadonghai Tourism Centre (Holdings) Co.Ltd(000613) , up 9.48%, 5.96%, 5.08%, 3.64% and 2.70% respectively. There are 40 listed companies that have achieved negative returns, among which the top five listed companies are Btg Hotels (Group) Co.Ltd(600258) , China Tourism Group Duty Free Corporation Limited(601888) , Shenzhen Kingsun Science & Technology Co.Ltd(300235) , Shanghai Xinnanyang Only Education & Technology Co.Ltd(600661) , Guangzhou Lingnan Group Holdings Company Limited(000524) , with increases and decreases of – 7.32%, – 7.71%, – 8.07%, – 10.05% and – 12.61% respectively. As of March 25, 2022, the overall PE (TTM, overall method) of CITIC’s consumer service industry was about 33.27 times, slightly lower than last week and 46.64 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 were 29.08 times, 50.39 times, 42.38 times and 53.48 times respectively.
Industry operation data: as of March 25, 2022, the vaccination volume of covid-19 vaccine per 100 people in China has reached 22487 doses, the cumulative vaccination volume of covid-19 vaccine has reached 3.251 billion doses, and the average covid-19 vaccination volume in seven days is about 4129700 doses. The total amount of covid-19 vaccination per 100 people in the world reached 141.71 doses, of which the complete vaccination rate of covid-19 vaccine per 100 people reached 57.34%, and the daily covid-19 vaccination volume reached 156294 million doses.
Key industry news: (1) the joint prevention and control mechanism of the State Council held a press conference to encourage all localities to take accurate prevention and control measures according to local conditions, so as to exchange the minimum cost for the maximum social and economic benefits. (2) The Ministry of culture and tourism issued the 2022 departmental budget of the Ministry of culture and tourism. According to the data, in 2022, the total budget of financial allocation revenue of the Ministry of culture and tourism is 5.06 billion yuan and the total budget of expenditure is 6.929 billion yuan. (3) Eight departments jointly issued a document to encourage qualified time-honored enterprises to be included in tourism routes.
Industry perspective: maintain the recommended rating of the industry. This week, China’s sporadic epidemic continued, and famous scenic spots such as Mount Tai and Shanghai Disneyland were closed. China Eastern Airlines incident may cause short-term travel emotional pressure, but from the perspective of accident rate, air travel is still one of the safest means of transportation, and it is considered that the subsequent impact on travel is small. 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.
