Report released this week
Comments on Yunnan Botanee Bio-Technology Group Co.Ltd(300957) 2021 annual report: continuous improvement of profitability and acceleration of multi brand layout such as winonababy
Comments on Milkyway Chemical Supply Chain Service Co.Ltd(603713) 2021 annual report: net profit attributable to parent company + 49.7%, rapid development of trading business
Comments on the annual report of Yonghe medical in 2021: revenue increased by 32.4% at the same time, there is a broad space for planting and breeding, the channels are expanded rapidly after listing, and the leading position is stable (this week refers to March 21 to March 27, 2022, the same below)
Event: Hainan Tourism Investment Development Co., Ltd. (hereinafter referred to as “CTS”), a state-owned enterprise in Hainan Province, will become the controlling shareholder of Beijing Qianjing Landscape Co.Ltd(603778) A-share listed company through the acquisition of shares and participation in private placement, and Hainan SASAC will become its actual controller. What does this mean for the duty-free industry?
Transaction details: HTC plans to acquire Beijing Qianjing Landscape Co.Ltd(603778) 108 million shares by means of transfer of shares and entrusted voting rights by agreement, which is the largest shareholder of the company, and owns 179 million shares of voting rights in total, accounting for 27.90% of the total share capital of the company, becoming the controlling shareholder. The actual controller of the company will be changed to Hainan SASAC. It is expected to hold Beijing Qianjing Landscape Co.Ltd(603778) 237 million shares after the completion of the fixed increase, accounting for 30.71% of the total share capital of Beijing Qianjing Landscape Co.Ltd(603778) after the issuance.
According to the brief financial situation disclosed by CITS, the revenue increased significantly in 2021: according to tianyancha, the subsidiaries of CITS include Boao and Sanya state guesthouse, Hainan tourism investment holding group, tourism investment duty-free products Co., Ltd. and hold 39% of the shares of Hainan duty-free products Co., Ltd. The operating revenue of q1-q3 in 2019, 2020 and 2021 is 1.34 billion yuan, 8.5 billion yuan and 2.38 billion yuan respectively. The reason for the substantial increase in operating revenue in 2021 is speculated to be the official opening of the sea travel duty-free city on December 30, 2020, resulting in the explosion of tax-free goods sales revenue.
As the core business of CITS, the tax exemption of tourism investment is expected to be injected into listed companies to seek accelerated development. Sanya sea travel duty-free City, the key project of sea travel, is a benchmark outlying island duty-free project with a business area second only to China free Sanya Haitang Bay duty-free shopping center, and operates nearly 350 international well-known brands. After the acquisition, CITS will hold two listed companies: Beijing Qianjing Landscape Co.Ltd(603778) and Hainan Haiqi Transportation Group Co.Ltd(603069) , of which Beijing Qianjing Landscape Co.Ltd(603778) is directly controlled. We believe that as the core business of CITS, tourism investment tax exemption is expected to be injected into listed companies to seek the accelerated development of tax-free business.
It is suggested to pay attention to China Tourism Group Duty Free Corporation Limited(601888) , the tax-free leader benefiting from the recovery of travel, and Hainan Development Holdings Nanhai Co.Ltd(002163) , Beijing Qianjing Landscape Co.Ltd(603778) , which are expected to inject tax-free assets.
Risk warning: the acquisition progress is less than expected; Repeated outbreaks; The prosperity of terminal consumption decreased; Intensified market competition, etc.
