HUAXI Securities·2025-11-03 03:15Investment Rating - The industry rating for tourism retail is "Recommended" [2][4] Core Insights - The new policies aim to enhance the flexibility of duty-free operations by expanding product categories, relaxing approval processes, and improving service delivery, thereby stimulating duty-free shopping consumption [2] - The recent announcement on October 17 regarding Hainan's duty-free shopping policy includes an expansion of the product range, allowing domestic goods sales, adjusting the shopping age, and extending the applicable population, which is expected to boost duty-free consumption [3] - The continuous release of favorable duty-free shopping policies is anticipated to invigorate consumption in both offshore and inbound duty-free sectors, with significant growth potential for city duty-free stores [4] Summary by Sections Policy Overview - The new policies effective from November 1, 2025, include four core upgrades: empowering domestic products, expanding product categories, decentralizing approval processes, and optimizing services [1] - Specific product categories added include mobile phones, drones, sports goods, health foods, over-the-counter drugs, and pet foods [2] Hainan Duty-Free Policy Adjustments - The number of duty-free product categories has increased from 45 to 47, with new inclusions such as pet supplies and portable musical instruments [3] - Domestic products like clothing, ceramics, and tea can now be sold in duty-free stores, treated as exports for tax purposes [3] Investment Recommendations - The report identifies key beneficiaries of the new policies, including China Duty Free Group, Wangfujing, Hainan Airport, and others, suggesting potential performance improvements for these companies [4]