Market review last week:
Last week (04.04-04.08), the social service sector (Shenwan) fell by 1.48%, the Shanghai Composite Index fell by 0.94%, the Shenzhen Component Index fell by 2.20%, and the Shanghai and Shenzhen 300 fell by 1.06%. The social service sector lost 0.54 percentage points to the Shanghai composite index last week, ranking 20th among the weekly rises and falls of Shenwan’s 34 primary sub industries.
Core view:
According to the travel data during the Qingming Festival holiday, the impact of the epidemic is still severe. In terms of travel, it is estimated that 53.781 million passengers will be sent by railways, highways, waterways and civil aviation nationwide during the Qingming Festival holiday, a year-on-year decrease of 62.7%; During the three-day Qingming Festival holiday, 75.419 million Chinese tourists visited the country, a year-on-year decrease of 26.2%, and recovered to 68.0% in the same period in 2019 according to comparable standards; China’s tourism revenue reached 18.78 billion yuan, a year-on-year decrease of 30.9%, recovering to 39.2% in the same period in 2019. On April 2, according to the official microblog of CDF Sanya international duty free city, according to the requirements of epidemic prevention and control, the first and second phases of CDF Sanya international duty free city will be temporarily closed from 13:00 on April 2, and the business hours will be notified separately. At the same time, the national service Chinese medicine duty-free Sanya store and Sanya sea travel duty-free city have also issued notices of temporary closure. At present, the entry-exit and travel restrictions in some parts of China caused by the epidemic still have an impact on the prosperity of tax-free, tourism, hotels, catering and other industries. We believe that the short-term impact will not change the long-term prosperity of the industry. With the introduction of relief policies such as tax relief to support the development of difficult industries and the gradual improvement of epidemic prevention and control ability, with the gradual improvement of the epidemic situation, the prosperity of the industry is expected to accelerate recovery.
Company announcement and industry information:
Wangfujing Group Co.Ltd(600859) : Sancheng investment holds 87325918 shares of the company, accounting for 7.71% of the total share capital of the company. All the above shares come from the non-public offering of the company and the sales restriction has been lifted on September 16, 2019 St tengbang: tengbang group, the controlling shareholder of the company, holds 113241858 shares of the company, accounting for 18.37% of the total share capital of the company, of which 103483783 shares are pledged, accounting for 91.38% of the total shares of the company and 16.79% of the total share capital of the company; The number of shares under judicial freeze is 113241858, accounting for 100% of the total shares of the company and 18.37% of the total share capital of the company; The number of shares waiting to be frozen is 3140945620, accounting for 277366% of the total shares of the company and 509.47% of the total share capital of the company Btg Hotels (Group) Co.Ltd(600258) : within six months after the issuance of the reduction announcement, the reduction shall be permitted by laws and regulations such as centralized bidding or block trading. The reduction of director yuan Shouyuan shall not exceed 25200 shares, accounting for 000225% of the total shares of the company; Li Xiangrong, deputy general manager and chief financial officer, reduced no more than 70000 shares, accounting for 000624% of the total shares of the company; Duan Zhongpeng, deputy general manager and Secretary of the board of directors, reduced no more than 19300 shares, accounting for 000172% of the total shares of the company.
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.
