Hainan Haiqi Transportation Group Co.Ltd(603069) plans to acquire the duty-free equity of China Travel Service through fixed increase, and China Travel Service holdings makes an offer to acquire Hainan Development Holdings Nanhai Co.Ltd(002163)
Event 1: Hainan Haiqi Transportation Group Co.Ltd(603069) announced that it was planning a major asset restructuring, planned to buy part or all of the equity of hailv tax-free held by Hainan tourism investment, and issued shares to qualified specific investors to raise matching funds.
Event 2: Hainan Development Holdings Nanhai Co.Ltd(002163) issued 4.1408 million non-public shares at 14.49 yuan per share, raising a total of about 600 million yuan. After deducting various issuance expenses, the net amount raised was 587 million yuan. All the fixed additional shares were subscribed by Hainan holdings and listed on Shenzhen Stock Exchange on May 12. After the completion of the fixed increase, the shareholding ratio of Hainan holdings increased from 27.12% before the issuance to 30.69%. Hainan holdings promises to inject the controlling rights of the company’s global consumer goods (Hainan) Trading Co., Ltd. into the issuer through agreement transfer, issuance of shares and purchase of assets within three years after the completion of this non-public offering.
Comments: 1) Benefiting from the return of overseas consumption and the continuous release of consumption promotion policy dividends, the tax-free industry has broad growth space. Injecting the duty-free overseas travel service into listed companies not only supports new duty-free operators to reduce early losses and improve their operating capacity to achieve faster growth, but also provides more diversified choices for the investment of the industry “track” and reduces the capital pressure of state-owned shareholders; 2). In addition to strategy, bidding, procurement and operation, the core competitiveness of duty-free merchants also needs capital support to deal with sudden crises and promote the long-term and stable development of business. During the epidemic period, the decline in revenue caused by the closure of duty-free stores, the pressure on inventory turnover and liquidity, and the relatively rigid fixed costs require capital support to survive the temporary crisis period. In addition, relying on the operation management of modern enterprise management system is also conducive to improving the management level and operation efficiency of duty-free merchants. 3). Tax exemption for outlying islands is an important link in the construction of Hainan free trade port. Capital empowerment helps to provide financial support for the long-term layout of business. At present, the investment amount of the No. 2 project of phase I of China free Sanya International duty-free city under construction is 3.690 billion yuan, and the China free Haikou international duty-free city project is 12.860 billion yuan. Both of them are strategic planning projects supported by large capital. In the future, the continuous layout of duty-free business on Hainan outlying islands also needs to rely on large-scale financial support.
Investment advice
Under the influence of the epidemic, the prosperity of the travel chain and human services sector is under pressure in the short term, but the medium and long-term logic is still stable. It is suggested to pay attention to the valuation repair brought by the stabilization of the epidemic situation in Q2 China, and it is suggested to choose the leading target with stable growth logic / improved competition pattern / providing high-quality supply. We suggest focusing on four main lines of recovery logic: 1) Recommend Zhejiang Ssaw Boutique Hotels Co.Ltd(301073) , Shanghai Jin Jiang International Hotels Co.Ltd(600754) , Btg Hotels (Group) Co.Ltd(600258) , Huazhu group, Jinling Hotel Corporation Ltd(601007) ; 2). Recommend Songcheng Performance Development Co.Ltd(300144) , Jiangsu Tianmu Lake Tourism Co.Ltd(603136) , targets of high-quality scenic spots benefiting from the increased penetration of leisure tourism and peripheral tourism, and pay attention to China Cyts Tours Holding Co.Ltd(600138) , Wuxi Online Offline Communication Information Technology Co.Ltd(300959) , Fosun tourism culture opened up by Wuxi Online Offline Communication Information Technology Co.Ltd(300959) tourism business and Changbai Mountain Tourism Co.Ltd(603099) , which benefit from the increased attention of ice and snow tourism; 3). Recommend Helen’s and jiumaojiu, which are expected to be repaired in the same store after the epidemic, have strong growth fundamentals, and are incubating new brands & new business forms. It is suggested to pay attention to Haidilao, Xiabu and Xiabu, the leading restaurant; 4). It is recommended to recommend the tax-free sector benefiting from consumption return and consumption upgrading and the human services sector with obvious anti cyclical attribute. It is recommended to recommend China Tourism Group Duty Free Corporation Limited(601888) , Beijing Career International Co.Ltd(300662) .
Risk tips
Macroeconomic fluctuation risk; Repeated outbreaks exceed the expected risk; The risk of intensified industry competition; Health and safety risks.
