Bank of China Securities·2025-06-11 01:31Investment Rating - The report maintains an "Outperform" rating for the social services industry, expecting it to perform better than the benchmark index in the next 6-12 months [2][50]. Core Insights - The social services sector saw a 2.27% increase in the last two trading weeks, ranking 12th among 31 industries in the Shenwan classification. It outperformed the CSI 300 index by 2.48 percentage points [2][13]. - The travel and tourism market showed good performance during the Dragon Boat Festival, with a year-on-year increase in travel volume and spending, although the average spending per person slightly decreased. There are expectations for further growth in travel demand during the summer [2][5]. Summary by Sections Market Review & Industry Dynamics - The social services sector's sub-sectors, including tourism and retail, all experienced growth, with the highest increase in tourism and scenic spots at 4.15% [17]. - Domestic travel during the Dragon Boat Festival reached 119 million trips, a 5.7% increase year-on-year, with total spending of 42.73 billion yuan, up 5.9% [5][20]. - The adjusted PE ratio for the social services industry is 32.07 times, which is at the 23.19% historical percentile, compared to the CSI 300's 11.88 times at the 41.00% historical percentile [21][24]. Investment Recommendations - The report suggests focusing on companies with strong performance certainty in the travel chain and related industries, including Huangshan Tourism, Lijiang Co., Songcheng Performance, and others. It also highlights hotel brands benefiting from business travel recovery and policies promoting employment [5][43].