Market review last week:
Last week (05.16-05.20), the social service sector (Shenwan) rose 1.25%, the Shanghai Composite Index rose 2.02%, the Shenzhen Component Index rose 2.64%, and the Shanghai and Shenzhen 300 rose 2.23%. The social service sector lost 0.77 percentage points to the Shanghai composite index last week, ranking 27th among the weekly increases and decreases of Shenwan’s 34 primary sub industries.
Core view:
On May 17, according to nanhai.com, Cui Jian, member of the Party group and deputy director of the Department of Commerce of Hainan Province, said that he would seize the precious window period of the epidemic, further optimize the layout planning of duty-free stores and improve the market carrying capacity. Speed up the introduction of high-end best-selling goods and high-quality goods and Guochao brands produced in China, improve the richness of goods, meet the shopping needs of Chinese people, speed up the introduction of international well-known brands loved by Chinese people, promote the synchronization of “price, brand and variety” with the international three, and promote the healthy development of duty-free industry. Due to the characteristics of their own consumption scenarios, tax-free consumption channels have natural advantages in helping domestic brands enter the international market and enhance international brand strength. In the international duty-free consumer market, duty-free shops in various countries have made great efforts to support their own brands. For example, Korean duty-free shops have supported and promoted snow show, amore and other brands to gradually move from home to the world, and Thai royal power group has also actively supported domestic brands. On the one hand, the presence of domestic brands in duty-free stores is an affirmation of their brand value, on the other hand, it also facilitates their access to more international consumers, which plays an important role in promoting the brand towards globalization. We believe that with the continuous landing of high-quality domestic brands in the duty-free market, on the one hand, it will attract more consumers and continue to boost the development of the duty-free industry, on the other hand, it will help the internationalization of domestic brands and is expected to form a continuous virtuous circle.
Company announcement and industry information:
China Cyts Tours Holding Co.Ltd(600138) : in order to meet the needs of the company’s operation and development, expand financing channels and optimize debt structure, the company plans to apply to Bank Of China Limited(601988) inter market dealers association for the issuance of medium-term notes with a total amount of no more than RMB 2 billion Hubei Three Gorges Tourism Group Co.Ltd(002627) : Hubei Three Gorges Tourism Group Co.Ltd(002627) and Chongqing Wanzhou automobile transportation (Group) Co., Ltd. and Chongqing Chijia tourism culture and Creativity Development Group Co., Ltd. jointly signed the investment agreement for the establishment of “peak Shuangxia” tourism product operation company on February 18, 2022, and planned to jointly establish a joint venture. Recently, the new company has completed the industrial and commercial registration procedures and obtained the business license issued by Fengjie County market supervision and Administration Bureau Wuhan Sante Cableway Group Co.Ltd(002159) : the board of directors agreed to apply to the bank for a one-year working capital loan of 70 million yuan to meet the needs of the company’s development and daily operation funds, and provide guarantee for its subsidiaries Fortune Ng Fung Food (Hebei) Co.Ltd(600965) : Fortune Ng Fung Food (Hebei) Co.Ltd(600965) received the advance notice of administrative supervision measures from Hebei securities regulatory bureau of China Securities Regulatory Commission to Li Fucheng, one of the actual controllers of the company, the advance notice of administrative supervision measures to Cheng Jing, chief financial officer of the company, and the decision of Hebei securities regulatory Bureau on administrative supervision measures to issue warning letters to Fortune Ng Fung Food (Hebei) Co.Ltd(600965) and Li Liang and Deng Chonghui.
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.
