Core Viewpoint - Changbai Mountain's stock price has experienced fluctuations, with a recent decline of 2.04% and a year-to-date increase of 9.85% [1] Company Overview - Changbai Mountain Tourism Co., Ltd. is located in the Changbai Mountain Protection and Development Zone, Jilin Province, established on December 8, 2010, and listed on August 22, 2014 [1] - The company's main business includes tourism services, with revenue composition as follows: 66.82% from tourism transportation, 24.09% from hotel operations, 6.82% from other businesses, and 2.28% from travel agency services [1] Financial Performance - For the period from January to September 2025, Changbai Mountain achieved an operating income of 636 million yuan, representing a year-on-year growth of 6.99%, and a net profit attributable to shareholders of 149 million yuan, with a growth of 1.05% [2] - Since its A-share listing, the company has distributed a total of 144 million yuan in dividends, with 42.53 million yuan distributed over the past three years [3] Shareholder Structure - As of September 30, 2025, the number of shareholders for Changbai Mountain was 45,900, an increase of 25.35% from the previous period, with an average of 5,814 circulating shares per person, a decrease of 20.23% [2] - The top ten circulating shareholders include Hong Kong Central Clearing Limited and various ETFs, with notable increases in holdings from some shareholders [3]

Core Viewpoint - The announcement by Changbai Mountain (603099) regarding the "Quality Improvement and Efficiency Enhancement Action Plan for 2025-2026" aims to enhance operational efficiency and strengthen core competitiveness, sharing development results with investors through steady performance growth and active shareholder returns [2] Group 1: Strategic Framework - The action plan focuses on high-quality development, emphasizing the dual drive of "internal value enhancement" and "market value realization" to achieve stable operations and a reasonable reflection of market value [3] - In 2023, the company achieved a revenue of 620.43 million yuan and a net profit of 138.06 million yuan, benefiting from both summer and winter peak seasons [3] - The stock price increased from 10.74 yuan at the beginning of 2023 to a peak of 60.67 yuan in 2024, stabilizing at historical highs [3] Group 2: Development Goals - The core goal of the action plan is to build a world-class ecological tourism destination, leveraging the company's unique resources such as high-quality snow and volcanic hot springs [4] - Five action directions are proposed to transition tourism from "recovery" to "high-quality growth," including enhancing core competitiveness, improving scenic area management, promoting regional integration, diversifying business models, and continuous brand marketing [5] Group 3: Tourism Innovation - New tourism projects for the winter season have been introduced, with visitor numbers at various attractions increasing significantly, such as a 323% increase at Nanshan Ski Resort [6] - The opening of the "Lujiao Village" on December 27, 2023, aims to create a new family-friendly vacation destination [6] - Improved transportation, such as the opening of the Shenbai High-speed Railway, is expected to enhance visitor flow, making travel to Changbai Mountain more accessible [6] Group 4: Future Projects - The second phase of the Changbai Mountain Volcano Hot Spring project is expected to be completed by 2025, with an estimated annual revenue of 120 million yuan and a net profit of 33.13 million yuan [7] - This project will integrate various resources and focus on year-round operations, complementing the winter tourism segment [7]

Core Viewpoint - The ice and snow tourism index experienced a decline of 2% during intraday trading, with most constituent stocks also falling significantly [1] Group 1: Stock Performance - Jingxue Energy saw a drop of 7.29% [1] - Bingshan Refrigeration decreased by 5.61% [1] - Dalian Shengya fell by 5.19% [1] - Changbaishan declined by 3.16% [1]

Summary of Changbai Mountain Conference Call Industry Overview - The conference call discusses the tourism industry, specifically focusing on the Changbai Mountain scenic area and its performance during the winter season and upcoming expansions. Key Points and Arguments 1. **Visitor Growth and Seasonal Impact** - The Changbai Mountain scenic area is expected to see a significant increase in visitor numbers in 2025, with a 65.29% growth in the southwestern scenic area. However, overall visitor data was affected by weather conditions during the Jilin Province ice and snow holiday, limiting operations to only two days [2][3]. 2. **High-Speed Rail Impact** - The opening of the Shenbai High-Speed Rail has led to a 36% year-on-year increase in passenger numbers at Changbai Mountain Station, effectively supporting regional visitor traffic. Increased demand is noted for routes from Harbin and Beijing to Changbai Mountain, with expectations for more train services during the Spring Festival [2][5]. 3. **Hotel Expansion Plans** - The company completed funding for a project in early November 2025, which includes the addition of 400 hotel rooms expected to open in the second half of 2026. This hotel will be positioned similarly to Crowne Plaza, aimed at meeting strong vacation demand and significantly contributing to company performance [2][3][4]. 4. **Weather Conditions and Operational Adjustments** - November and December 2025 saw sufficient snowfall, which is anticipated to benefit operations for the 2026 snow season. The company plans to extend the operational hours of the Yinchang scenic area to maximize visitor capacity during the summer [2][7][9]. 5. **Future Visitor Projections** - The company expects a visitor growth rate of over 5% for 2026, with plans for further expansion of scenic areas to accommodate increasing tourist numbers. New projects and infrastructure improvements are also in the pipeline [8][6]. 6. **Marketing Strategies** - The company has initiated targeted marketing strategies, including a successful free ticket campaign for university students, which doubled the student visitor numbers. Future marketing efforts will focus on optimizing strategies to cover a broader audience and enhance off-peak season traffic [11]. 7. **Preparations for the Snow Season** - The upcoming snow season is expected to be robust, with the opening of the Ice and Snow World and various supporting projects. The company aims to leverage the growth of Northeast ice and snow tourism for mutual support and collaborative marketing [12]. Additional Important Content - The company is actively researching the possibility of extending operational hours for the Yinchang scenic area to increase visitor capacity during peak summer days [9]. - The second phase of the Hot Spring Village project is set to be completed by the end of next year, with plans to introduce reputable hotel brands to attract mid-market customers [10].

Group 1 - The ride-hailing concept sector declined by 0.90%, ranking among the top declines in concept sectors, with Longzhou Co. hitting the limit down, and Haima Automobile, Hainan Airlines, and Tianmai Technology experiencing significant declines [1] - Among the ride-hailing sector, 11 stocks saw price increases, with Changbai Mountain, Yunnan Tourism, and Dahua Co. leading the gains at 3.83%, 3.02%, and 1.98% respectively [1] - The ride-hailing sector experienced a net outflow of 1.236 billion yuan from main funds, with 19 stocks seeing net outflows, and 7 stocks having outflows exceeding 30 million yuan [2] Group 2 - The top net outflow stock was Beiqi Blue Valley, with a net outflow of 619 million yuan, followed by Haima Automobile and Changan Automobile with net outflows of 228 million yuan and 209 million yuan respectively [2] - The stocks with the highest net inflow included Changbai Mountain, Shenkangjia A, and Dahua Co., with net inflows of 56.36 million yuan, 15.70 million yuan, and 14.38 million yuan respectively [2] - The ride-hailing sector's outflow list included stocks like Beiqi Blue Valley, Haima Automobile, and Changan Automobile, with respective declines of 0.85%, 6.76%, and 2.24% [3]

Core Viewpoint - The tourism and catering sector is experiencing a surge, particularly in the ice and snow tourism segment, with significant increases in stock prices for related companies [1] Group 1: Market Performance - Qujiang Cultural Tourism has reached its daily limit increase, while Sanxia Tourism has risen by approximately 7%, and Shoulu Hotel has increased by about 5% [1] - Other companies such as Changbai Mountain and Dalian Shengya have also seen stock price increases of over 3% [1] Group 2: Ice and Snow Tourism Trends - The ice and snow tourism market is gaining momentum as the winter season approaches, with a nearly 900% year-on-year increase in search volume for "outdoor ski resorts" since mid-October 2025 [1] - Major cities leading in ice and snow tourism include Shenzhen, Beijing, Shanghai, Harbin, Zhangjiakou, Wuhan, Guangzhou, Hangzhou, Shenyang, and Chengdu [1] - There has been a more than 20% year-on-year increase in searches for "food near ski resorts" and "hotels near ski resorts" on Meituan [1] Group 3: Investment Recommendations - Zhongyin Securities notes that winter is typically a low season for cultural tourism, but the interest in ice and snow tourism is rising, particularly in northern regions [1] - The firm suggests focusing on companies with strong performance growth certainty in the travel chain and related industries [1]

Industry Overview - The 27th Harbin Ice and Snow World will open on December 17, 2025, highlighting the growing popularity of ice and snow tourism and its economic potential [1] - The ice and snow economy is expanding beyond Northeast China, with various cities incorporating it into their development plans to leverage "cold resources" for "hot business opportunities" [1] - The ice and snow economy is expected to reach a total scale of 1.2 trillion yuan by 2027 and 1.5 trillion yuan by 2030, as outlined in government policies [7] Company Developments - Changbai Mountain (603099) is enhancing high-quality, immersive ice and snow experience projects, integrating various tourism elements [2] - Lingnan Holdings (000524) is actively developing diverse ice and snow tourism routes, offering a wide range of activities [2] - Ice Mountain Cold and Hot (000530) has engaged in several significant ice and snow engineering projects [2] - Jingxue Energy (301010) is preparing to participate in the construction of ski resorts in Changchun and Suzhou [2] - Yuanlong Yatu (002878) has collaborated with Harbin Ice and Snow World to develop licensed products for winter sports events [2] Market Trends - The recent "snow holiday" in Jilin Province saw a 119% increase in domestic tourist numbers and a 31% rise in total spending [6] - The ice and snow economy is evolving into an "ice and snow+" model, integrating various sectors such as culture, tourism, sports, and health [6] - The demand for ice and snow tourism is increasing, with many families planning trips to ice and snow attractions [4] Regional Policies - Various provinces, including Heilongjiang and Liaoning, are implementing policies to support the development of the ice and snow economy, focusing on high-quality growth and infrastructure [8][9] - Hebei Province has established multiple ice and snow industry clusters, aiming for a total industry scale of 90 billion yuan by the end of the 14th Five-Year Plan [9] - Southern cities are also joining the ice and snow economy trend, with initiatives to develop indoor ice and snow venues and promote local tourism [10][11] Challenges and Opportunities - Despite the growth, there are challenges such as insufficient quality supply in ice and snow tourism and uneven regional development [12] - The industry is encouraged to enhance brand awareness and improve service quality to meet consumer expectations [12] - Collaborative efforts are being made to strengthen the ice and snow tourism industry chain, focusing on upstream manufacturing and downstream services [13]

Group 1: Strategic Partnership and Brand Launch - Junting Hotel Group and Choice Hotels International launched the Comfort and Quality brands in China, marking a significant collaboration in the hotel industry [1][12] - The brands were customized for the Chinese market, showcasing a model of "global resources + local operations" [2][12] - Initial investment agreements for several hotels were signed, including locations in Chongqing and Nanjing, indicating the start of brand expansion [2][12] Group 2: Comfort Hotel Insights - Comfort Hotel, established in 1981, targets the 18-30 age group with a focus on comfort and practicality, promoting a "Nothing but Comfort" philosophy [3][14] - Investment details show a single room investment of 85,000 yuan, with an average first-year room rate of 300 yuan per night and an occupancy rate of 80% [3][15] - The projected payback period for investors is approximately 3.19 years, making it an attractive option for high turnover [15] Group 3: Quality Hotel Insights - Quality Hotel, with roots dating back to 1939, emphasizes local culture and aims to create a unique cultural experience for guests [4][17] - The investment for a single room is 180,000 yuan, with a first-year average room rate of 520 yuan per night and an occupancy rate of 75% [4][17] - The projected GOP rate is 58%, indicating a strong potential for profitability [17] Group 4: Support Mechanisms for Investors - Junting has established four core support mechanisms to enhance the efficiency of the partnership: funding support, operational management, customer sourcing, and revenue management [6][18] - The funding support includes loans with a minimum interest rate of 4%, alleviating financial pressure for investors [6][18] - The operational management strategy includes a three-month group management period to quickly ramp up operations and reduce trial-and-error costs [6][18] Group 5: Market Implications - The collaboration between Junting and Choice Hotels is expected to drive high-quality development in the mid-to-high-end hotel market in China [6][18] - This partnership is seen as a new paradigm for internationalization and scalability in the hotel industry, potentially leading to the globalization of Chinese hotel services [6][18]

Core Insights - The report emphasizes two main investment directions for 2026: recovery sectors focusing on profit inflection points and growth sectors targeting high revenue increases [4][19][20] Recovery Sectors - The duty-free sector is showing signs of recovery with favorable policies enhancing consumption, including expanded product categories and improved shopping convenience [4][19] - The hotel industry is expected to see a gradual improvement in RevPAR, with business and leisure demand stabilizing, indicating a potential operational turning point in Q4 or next year [4][19] - The tourism sector remains resilient despite macroeconomic pressures, with increasing travel volumes and government initiatives aimed at boosting consumption in various travel themes [4][19] Growth Sectors - The beauty industry is experiencing intensified competition, with a focus on channel value reconstruction and brand establishment [4][20] - The gold and jewelry sector is witnessing a recovery, driven by new product launches and an increasing focus on high-end market competition [4][20] - The cross-border e-commerce sector is expected to rebound, supported by stable policies and a decrease in shipping costs, with strong demand from the U.S. market [4][20] Key Company Recommendations - For duty-free, China Duty Free Group is recommended for its long-term growth potential, with attention to Wangfujing and Zhuhai Duty Free Group [4] - In the hotel sector, companies like Jinjiang Hotels, Atour, and Huazhu are highlighted for their growth prospects [4] - In tourism, companies such as Three Gorges Tourism and Changbai Mountain are suggested for monitoring acquisition and new business developments [4] - The beauty sector includes recommendations for brands like Maogeping and Proya, focusing on channel strategies [4] - For gold and jewelry, companies like Chow Tai Fook and Lao Pu Gold are recommended for their market positioning [4] - In retail, companies like Yonghui Supermarket and Xinhua Department Store are noted for their recovery potential [4]

Investment Rating - The report maintains an "Overweight" rating for the retail sector, focusing on companies with strong operational resilience or signs of bottom reversal [6][63]. Core Insights - The focus has shifted from policy catalysts to fundamental performance, with an emphasis on companies demonstrating operational resilience or potential recovery from low points [2][15]. - The retail sector experienced a relatively small decline of -0.21% during the week of December 8-12, 2025, outperforming other consumer-related sectors [1][7]. - The report highlights specific stocks that have shown significant price movements, such as Guai Bao Pet and TCL Electronics, which saw increases due to various catalysts [2][16]. Summary by Sections Market Overview - The retail sector's performance was relatively stable compared to other sectors, with a decline of only -0.21%, ranking 12th among all sectors [1][7]. - The overall market sentiment has shifted towards technology and high-end manufacturing, leading to weaker returns in consumer and cyclical sectors [2][15]. Stock Performance - Notable gainers included Guai Bao Pet, which rose by 2.7%, and TCL Electronics, which increased by 2.5%, attributed to factors such as oversold rebounds and improved performance expectations [2][16]. - Conversely, stocks like Pop Mart faced declines due to disappointing sales during the overseas Black Friday promotions, raising concerns about future growth [2][16]. Future Outlook - The report suggests that investment opportunities may be limited as policy expectations have stabilized, recommending stocks with strong fundamentals and low valuation percentiles [3][17]. - Three main investment themes are proposed: benefiting from holiday travel and tourism, domestic brands with competitive advantages, and durable goods companies likely to benefit from U.S. interest rate cuts [3][17]. Sector News - In the cosmetics sector, sales on major platforms reached 37.64 billion yuan in the first 11 months, with Proya leading in several categories [4][18]. - The home appliance sector saw the launch of a new smart air conditioning factory by Xiaomi, enhancing its production capabilities [4][19]. - The furniture sector is addressing consumer pain points with new commitments from leading companies to ensure quality and service [4][20].