Group 1 - The tourism sector stocks have shown strong performance, with China Duty Free Group rising over 6%, and Songcheng Performance, China Southern Airlines, and Air China each increasing by over 2% [1] - The tourism ETF, which tracks the CSI Tourism Theme Index, has also risen by more than 2% due to market influences [1] Group 2 - The CSI Tourism Theme Index includes no more than 50 listed companies involved in various aspects of the tourism industry, such as accommodation, sightseeing, shopping, entertainment, and travel services, reflecting the overall performance of tourism-related stocks [2] - From a supply perspective, all segments of the tourism industry, including scenic spots, hotels, travel agencies, and retail, are experiencing a comprehensive recovery [2] - The government continues to implement policies to support the tourism industry, focusing on regulating industry development, enhancing the supply of quality tourism products and services, optimizing infrastructure investment, improving transportation services, and broadening financing channels [2] - 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, have significantly boosted interest in the tourism sector recently [2]

Core Viewpoint - The report from Credit Lyonnais highlights the focus on opportunities in the segmented development of the Chinese consumer sector, with expectations of recovery driven by relaxed monetary policy, improved stock market conditions, and increased offshore financing [1] Group 1: Consumer Sector Outlook - The outlook for the Chinese consumer sector emphasizes the recovery of high-end consumption, supported by favorable monetary policies and market conditions [1] - Credit Lyonnais predicts that consumer sentiment and CPI data will remain moderate, allowing companies to capture opportunities in market segmentation and global expansion [1] Group 2: Preferred Stocks - The report identifies three preferred stocks: Anta Sports (02020), Yue Yuen Industrial (00551), and Samsonite (01910), with Yue Yuen's target price raised from HKD 16 to HKD 18 [1] - The firm also suggests monitoring the earnings improvement of Li Ning (02331), Yingtong Holdings (06883), and China Duty Free Group (601888) (01880) [1] Group 3: Industry-Specific Predictions - Credit Lyonnais forecasts a 3% to 4% year-on-year growth in China's sportswear retail sales for the coming year, attributing this to major brands optimizing retail channels and enhancing product functionality [1] - The cosmetics industry is expected to see low to mid-single-digit growth in the next year [1] - In the gold and jewelry sector, while price increases may offset VAT cost pressures, retail jewelers' sales are still anticipated to be affected [1] - In the collectible toy segment, the next catalyst for Pop Mart (09992) may come from IP developments beyond Labubu [1]

Core Viewpoint - The A-share market's duty-free shop sector experienced a significant afternoon rally, with notable gains in several companies [1] Company Performance - China Duty Free Group saw its stock price increase by over 8% [1] - Caesar Travel's stock rose by more than 4% [1] - Other companies such as Wangfujing, Guangbai, and Zhuhai Duty Free Group also experienced upward movement in their stock prices [1]

Group 1 - The duty-free shop sector experienced a significant afternoon rally, with China Duty Free Group rising over 8% [1] - Caesar Travel increased by more than 4%, indicating positive market sentiment towards travel-related stocks [1] - Other companies such as Wangfujing, Guangbai, and Zhuhai Duty Free Group also saw gains, reflecting a broader trend in the duty-free market [1]

Group 1 - China National Pharmaceutical Group (01880.HK) saw a morning increase of over 4%, with a current rise of 4.81%, trading at 76.3 HKD [2] - The trading volume reached 148 million HKD [2]

Core Viewpoint - China Duty Free Group Co., Ltd. (China Duty Free) experienced a stock price increase of 5.02%, reaching 83.00 CNY per share, with a trading volume of 3.005 billion CNY and a turnover rate of 1.90%, resulting in a total market capitalization of 171.715 billion CNY [1] Company Overview - China Duty Free was established on March 28, 2008, and listed on October 15, 2009. The company is primarily engaged in the retail of tourism products and related services, operating through two main departments: tourism retail and tourism retail complex investment and development [1] - The revenue composition of the company includes 72.26% from duty-free product sales, 25.54% from taxable product sales, and 2.20% from other sources [1] Shareholder Information - Among the top ten circulating shareholders of China Duty Free, E Fund's Hu Shen 300 ETF (510310) reduced its holdings by 373,500 shares in the third quarter, now holding 12.0159 million shares, which accounts for 0.58% of the circulating shares. The estimated floating profit from this transaction is approximately 47.7032 million CNY [2] - The E Fund Hu Shen 300 ETF was established on March 6, 2013, with a current scale of 305.165 billion CNY. Year-to-date returns are 17.97%, ranking 2663 out of 4206 in its category, while the one-year return is 19.98%, ranking 2385 out of 4008 [2] Fund Management - The fund managers of E Fund Hu Shen 300 ETF are Yu Haiyan and Pang Yaping. Yu has a cumulative tenure of 14 years and 361 days, managing assets totaling 440.628 billion CNY, with the best fund return during his tenure being 157.38% and the worst being -78.9% [3] - Pang has a cumulative tenure of 7 years and 46 days, managing assets of 362.649 billion CNY, with the best return of 81.74% and the worst return of -37.67% during his tenure [3]

中国中免（601888）(01880)早盘涨超4%，截至发稿，涨4.81%，报76.3港元，成交额1.48亿港元。 消息面上，海南自由贸易港将于今年12月18日正式启动全岛封关运作。中国中免表示，现行离岛免税的 45 大类商品均已被列入《海南自由贸易港进口征税商品目录》。因此，封关后一定时期内，海南离岛 免税的整个体系将仍按目前情况运行，而旅客和商旅出行人次则有望随自贸港建设而持续增长，免税行 业占比较高的消费者服务有望受益。 东方证券指出，海南离岛免税景气回升。11月1–7日海南离岛免税购物金额5.06亿元、购物人数7.29万人 次，同比分别+34.86%、+3.37%，该行判断是受益于低基数、离岛免税新政、演唱会等大型活动、叠加 渠道促销所致。此外，日本游被"劝退"有望推动部分境外购物需求回流、叠加今年以来股市财富效应抬 升，冬季海南游和海南的免税销售有望受益。 ...

Group 1 - China Duty Free Group (中国中免) shares rose over 4%, reaching HKD 76.3 with a trading volume of HKD 148 million [1] - Hainan Free Trade Port will officially start its full island closure operation on December 18 this year, with 45 categories of duty-free goods included in the import tax product catalog [1] - The current duty-free system in Hainan will continue to operate as is for a certain period after the closure, with expected growth in traveler and business trip numbers benefiting the consumer services sector [1] Group 2 - Oriental Securities reported a recovery in Hainan's duty-free shopping, with sales amounting to HKD 506 million and 72,900 shoppers from November 1 to 7, marking year-on-year increases of 34.86% and 3.37% respectively [1] - The increase in sales is attributed to a low base, new duty-free policies, large events like concerts, and promotional activities [1] - The decline in Japanese tourism is expected to drive some overseas shopping demand back to Hainan, alongside the wealth effect from the stock market this year, benefiting winter tourism and duty-free sales in Hainan [1]

Core Viewpoint - China Duty Free Group Co., Ltd. (China Duty Free) has shown a positive stock performance with a year-to-date increase of 22.44% and a recent market capitalization of 167.08 billion yuan [1][2]. Financial Performance - For the period from January to September 2025, China Duty Free reported a revenue of 39.862 billion yuan, representing a year-on-year decrease of 7.34%. The net profit attributable to shareholders was 3.052 billion yuan, down 22.13% year-on-year [2]. - The company has cumulatively distributed dividends of 18.405 billion yuan since its A-share listing, with 7.241 billion yuan distributed over the last three years [3]. Stock Market Activity - As of December 1, the stock price of China Duty Free reached 80.76 yuan per share, with a trading volume of 7.61 billion yuan and a turnover rate of 0.49% [1]. - The stock has seen significant trading activity, with a net inflow of 55.3785 million yuan from main funds and notable large orders contributing to the buying and selling volumes [1]. Shareholder Structure - As of September 30, 2025, the number of shareholders increased to 309,300, with an average of 0 shares per shareholder [2]. - Major shareholders include China Securities Finance Corporation and Hong Kong Central Clearing Limited, with notable changes in their holdings [3].

Summary of Key Points from the Conference Call Industry Overview - **Industry**: China Consumer Sector - **Event**: Citi's 2025 China Conference - **Participants**: 44 China consumer companies were hosted, leading to the identification of five investment themes in the consumer sector [1][9] Investment Themes 1. **Shift Towards Experience Consumption**: - Consumers are increasingly valuing emotional experiences over physical goods, seeking happiness and self-expression through services [2] - Companies like Pop Mart provide affordable entertainment options that resonate with young consumers [2] 2. **Focus on Well-being**: - Younger generations are prioritizing spending on wellness, including health, fitness, and mindfulness [3] - Growth opportunities are seen in sectors like sportswear (Anta), health supplements (H&H), and beauty care (Giant Bio) [3] 3. **Rising Silver Economy**: - The aging population is driving demand for leisure and cultural experiences, benefiting industries like tourism (H World, Atour) and health supplements [4] 4. **Emerging New Channels**: - New offline channels such as membership stores and snack specialty chains are gaining traction, helping to offset declines in traditional distribution [5] 5. **Multi-brand Strategy**: - Companies are expanding their brand portfolios to meet diverse consumer demands, with a focus on easing channel inventory pressure [6] Company-Specific Insights Pop Mart (9992.HK) - **Sustainability of IP Operation**: Pop Mart is seen as a growth play due to its strong IP incubation capabilities. Concerns about growth sustainability are being addressed through new product launches [10] - **LABUBU Durability**: The company plans to enhance its LABUBU IP with new products and has postponed the launch of LABUBU 4.0 to 2026 [11] - **Overseas Expansion**: Plans to operate over 60 stores in the US by the end of 2025, with expansions into Canada and Mexico [13] Laopu Gold (6181.HK) - **Sales Growth Expectations**: Management expects high revenue growth in 2H25E driven by price adjustments and new store sales [16] - **Price Adjustment Strategy**: A recent price increase of over 25% aims to maintain a gross profit margin (GPM) of at least 40% [17] - **Store Expansion Plans**: Focus on expanding floor areas in existing malls rather than entering new ones [22] Haidilao International Holding Ltd (6862.HK) - **Recovery in Table-Turn**: Management anticipates positive momentum in table-turn rates due to seasonal factors and a low comp base [30] - **Operational Improvements**: Plans to terminate loss-making pilot programs to save on operational expenses [32] China Resources Beer (0291.HK) - **Sales Performance**: The company reported low single-digit year-over-year sales growth, outperforming peers [34] - **Margin Outlook**: Expected GPM improvement in 2H25E, with a target dividend payout ratio increase to ~60% in 2025E [36] Midea Group (0300.HK) - **Sales Growth Target**: Management maintains a target of ~10% sales growth for 2025, with a focus on air-conditioning sales recovery [40] - **Overseas Business Expansion**: Plans to increase overseas production to ~30% and grow sales in developed markets through M&A [41] Li Ning (2331.HK) - **Sales Guidance**: Maintained guidance for 2025 with expectations of flat sales and high single-digit net profit margin growth [48] Nongfu Spring (9633.HK) - **Sales Guidance**: Management reiterated a mid-teen percentage growth target for 2025, with limited impact from price wars in the beverage sector [51] Cosmetics Sector - **Mixed Performance**: Domestic brands like Mao Geping and Chicmax showed strong growth, while others lagged behind [56] - **Growth Strategies**: Companies are focusing on online sales growth and improving operational efficiency to enhance margins [57][59] Additional Insights - **Consumer Trends**: There is a notable shift towards experiential consumption and wellness, indicating a changing landscape in consumer preferences [2][3] - **Operational Strategies**: Companies are adopting multi-brand strategies and optimizing supply chains to enhance profitability and meet diverse consumer demands [6][14] This summary encapsulates the key insights and trends discussed during the conference, highlighting the evolving dynamics within the China consumer sector and specific company strategies.