Group 1 - The tourism and hotel sector continues to rise, with Shoulv Hotel and Jinjiang Hotel reaching the daily limit increase [1] - Junting Hotel, Huatian Hotel, and Jinling Hotel also experienced gains [1] - Related ETFs saw significant increases, with the tourism ETF (159766) rising by 5.59% and a trading volume of 336 million yuan, while another tourism ETF (562510) increased by 5.53% with a trading volume of 113 million yuan [1]

Group 1 - The A-share market has seen a strong performance in hotel stocks, with Jinjiang Hotels hitting the daily limit, Shoulu Hotels rising nearly 8%, Junting Hotels increasing by nearly 7%, and Huatian Hotels gaining over 3% [1]

Group 1 - The core point of the article highlights that Jinjiang Hotels has achieved a transaction volume of 1 billion yuan, marking a new high since December 11, 2024 [2] - The latest stock price of Jinjiang Hotels has increased by 9.99%, with a turnover rate of 4.51% [2] - The previous trading day's total transaction volume for the stock was 139 million yuan [2]

Group 1 - The A-share market is seeing a strong performance in consumer stocks, particularly in retail, duty-free, leisure services, airport, tourism, food, and dairy sectors [1] - Notable stocks that have hit the daily limit include China Duty Free Group, Guoguang Chain, Dongbai Group, Yingxin Development, Jinjiang Hotel, Overseas Chinese Town A, Sanyuan Foods, Huifa Foods, and Barbie Foods [1] - The National Bureau of Statistics released positive inflation data for October, indicating a month-on-month increase of 0.2% in the Consumer Price Index (CPI) and a year-on-year increase of 0.2%, marking a shift from decline to growth [1] Group 2 - The core CPI, excluding food and energy prices, rose by 1.2% year-on-year, with the growth rate expanding for the sixth consecutive month [1] - The Ministry of Finance plans to continue implementing measures to boost consumption, including providing financial subsidies for personal consumption loans and loans to key industry operators [1]

Core Viewpoint - The A-share tourism and hotel sector is experiencing significant growth, driven by various factors including upcoming holidays and favorable policies [1] Group 1: Market Performance - The tourism ETF (159766) saw an intraday increase of 5.33%, with a current increase of 5.19%, making it the top-performing ETF in the market [1] - Key stocks in the sector, such as China Duty Free Group, Overseas Chinese Town A, and Jin Jiang Hotels, hit the 10% daily limit, while ShouLai Hotel and Junting Hotel both rose over 7% [1] Group 2: Economic Indicators - The National Bureau of Statistics reported a 0.2% month-on-month increase in the Consumer Price Index (CPI) for October, with a year-on-year increase of 0.2% [1] - The core CPI, excluding food and energy prices, rose by 1.2% year-on-year, marking the sixth consecutive month of growth [1] Group 3: Policy and Future Outlook - Hainan Free Trade Port is set to officially launch its "closure" on December 18, significantly increasing the proportion of zero-tariff imported goods within the island [1] - Analysts note that the upcoming New Year and extended Spring Festival holidays, along with the rising popularity of winter tourism and the introduction of duty-free and visa-free policies, are contributing to the heightened interest in the tourism sector [1] Group 4: Sector Valuation - The tourism ETF closely tracks the CSI Tourism Theme Index, which encompasses various sub-sectors including scenic spots, airports, duty-free, and hotel dining [1] - Following previous market adjustments, the valuation of the tourism sector has returned to a relatively reasonable level, enhancing the margin of safety for investors [1]

Market Performance - The market experienced a volatile upward trend last week, with the Shanghai Composite Index rising by 1.08%, the Shenzhen Component Index by 0.19%, and the ChiNext Index by 0.65% [2] - The China Securities Index reported a decrease of 0.40%, closing at 2021.77 points [2] Strong Stock Performances - Notable strong performers included Zhongwei Company, which increased by 10.66%, and Darentang, which rose by 8.80% [2] - Other significant gainers were Yangguang Electric Power and Yiwei Lithium Energy, with increases of 5.90% and 5.04% respectively [2] Year-to-Date Stock Gains - Since the beginning of the second half of the year, Zhongji Xuchuang has surged by 236.32%, leading the gains [3] - Yangguang Electric Power follows with a rise of 198.52%, while Yiwei Lithium Energy, Zhaoyi Innovation, and Zhongwei Company have increased by 91.34%, 75.11%, and 69.86% respectively [3] Market Outlook - Short-term market sentiment is expected to remain volatile, with basic economic factors potentially having a reduced impact on stock structure [4] - Long-term perspectives suggest that the current market risk premium is at a historical median level, with equity asset valuations remaining reasonable [4] - The market is anticipated to shift from valuation-driven growth to fundamental-driven growth as domestic economic stability improves [4] Investment Focus - Investment strategies should focus on sectors with structural growth potential, particularly in emerging growth areas such as AI technology innovation, energy infrastructure, and semiconductors [4] - Additionally, attention should be given to cyclical sectors that may benefit from "anti-involution" policies and leading companies actively expanding into overseas markets [4]

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company has shown significant profit growth in Q3 2025, with a notable increase in net profit by 45.45% year-on-year, reaching 3.75 billion yuan, despite a revenue decline of 4.71% [1][4] - The company is focusing on optimizing its brand structure and advancing digital transformation, which has led to improved operational performance in Q3 2025 [4] - The company plans to list in Hong Kong, which is expected to enhance its overseas business and improve profitability [4] Summary by Sections Revenue and Profitability - For Q1-3 2025, the company reported revenue of 10.241 billion yuan, a year-on-year decrease of 5.09%, while the net profit attributable to shareholders was 746 million yuan, down 32.52% [1] - In Q3 2025, the company achieved revenue of 3.715 billion yuan, a decrease of 4.71% year-on-year, but the net profit attributable to shareholders increased by 45.45% [1][2] Hotel Operations - The company opened 343 new hotels in Q3 2025, achieving 26.4% of its annual target, with a net increase of 212 hotels [2] - The domestic hotel business has shown positive revenue growth in Q3 2025, with domestic hotel revenue reaching 2.64 billion yuan, up 2.2% year-on-year [2] Cost Management - The company has successfully reduced costs, with a year-on-year decrease in expense ratios by 5.7 percentage points in Q3 2025, contributing to improved net profit margins [4] - The management fee ratio also decreased by 4.4 percentage points year-on-year [4] Future Projections - Revenue projections for 2025-2027 are estimated at 13.718 billion yuan, 14.125 billion yuan, and 14.713 billion yuan, respectively, with net profits expected to be 905 million yuan, 1.128 billion yuan, and 1.319 billion yuan [4][6]

Core Viewpoint - The announcement of 7 Days Inn's expansion into the Southeast Asian market marks a significant step for Jinjiang Hotels (China) in its overseas strategy, following the earlier expansion of its other brands in Malaysia [1][3]. Group 1: Expansion Strategy - Jinjiang Hotels (China) will independently manage the development, construction, and operation of 7 Days Inn in Southeast Asia, indicating a solid commitment to local market penetration [3]. - The initial phase includes signing intentions for 10 projects, primarily located in key cities and popular tourist destinations in Malaysia, such as Kuala Lumpur and Penang [5]. Group 2: Market Potential - The Southeast Asian region presents a strong demand for high-quality, standardized accommodation products due to its large tourism base and increasing business interactions [7]. - 7 Days Inn aims to target the economic hotel market in Southeast Asia, complementing the previously launched Jinjiang Inn brand, leveraging established business models and operational efficiencies [7]. Group 3: Localization and Adaptation - The company plans to adapt its hotel offerings to meet local demands, cultural characteristics, and consumer preferences, enhancing brand appeal and competitiveness in the region [8]. - 7 Days Inn will integrate operational experiences and digital service capabilities from the Chinese market with local needs to create a quality hotel solution [8]. Group 4: Operational Model - The overseas expansion of 7 Days Inn represents the export of a mature business model and operational standards refined in the Chinese market, providing a robust foundation for rapid replication and growth abroad [9]. - As the overseas brand portfolio expands, Jinjiang Hotels (China) is expected to enhance its comparative advantages in the Southeast Asian market, leading to significant improvements in both development quality and efficiency [9].

Investment Rating - The report maintains an "Overweight" investment rating for the consumer services industry, expecting the industry index to outperform the market index by more than 10% in the next six months [31]. Core Insights - The consumer services industry index rose by 2.17% from October 24, 2025, to November 6, 2025, outperforming the CSI 300 index by approximately 0.28 percentage points during the same period [8][31]. - The report highlights the positive impact of the 2026 holiday arrangements, particularly the nine-day Spring Festival holiday, which is expected to stimulate domestic travel demand [31]. - Recent government policies, including the "14th Five-Year Plan" recommendations and improvements to duty-free shop policies, are anticipated to further support the recovery of inbound and domestic tourism [31][21][25]. Summary by Sections Market Review - The consumer services index continued its upward trend, outperforming the CSI 300 index [8]. - All sub-sectors within the consumer services industry experienced gains, with tourism and leisure leading at 3.44% [9]. - A total of 33 listed companies in the industry reported positive returns, with the top five performers being Fangzhitech, *ST Zhanggu, Caesar Travel, China Duty Free, and Chuangye Heima [12]. Industry News - The "14th Five-Year Plan" emphasizes expanding inbound consumption and implementing paid staggered vacations [23]. - The 2026 holiday schedule includes a nine-day Spring Festival break, leading to a threefold increase in flight searches on travel platforms [21]. - The Ministry of Finance announced improvements to duty-free shop policies effective November 1, 2025, aimed at boosting consumption [25]. Company Announcements - China Duty Free reported a revenue of 39.862 billion yuan for the first three quarters of 2025, a year-on-year decline of 7.34% [28]. - Long White Mountain announced a stock issuance to optimize its capital structure, raising approximately 236 million yuan [26]. - ST Zhangjiajie was accepted for reorganization by the court, leading to a temporary suspension of its stock [27]. Weekly Perspective - The report suggests focusing on companies such as Jinjiang Hotels, Changbai Mountain, Emei Mountain A, Xiangyuan Cultural Tourism, and China Duty Free, which are expected to benefit from the recovery in leisure travel demand and supportive policies [31][32].

Group 1 - The hotel and catering sector increased by 0.97% on November 7, with Quan Jud leading the gains [1] - The Shanghai Composite Index closed at 3997.56, down 0.25%, while the Shenzhen Component Index closed at 13404.06, down 0.36% [1] - Key stocks in the hotel and catering sector showed varied performance, with Quan Jud closing at 12.83, up 6.03% [1] Group 2 - The net inflow of main funds in the hotel and catering sector was 84.22 million yuan, while retail investors saw a net outflow of 86.10 million yuan [1] - Quan Jud had a main fund net inflow of 48.15 million yuan, accounting for 9.57% of the total [2] - Xi'an Catering reported a main fund net inflow of 29.77 million yuan, representing 8.63% of the total [2]