Guoxin Securities·2025-11-10 08:20Investment Rating - The report maintains an "Outperform the Market" rating for the social services sector [4][26]. Core Views - The social services sector is expected to benefit from favorable national policies aimed at expanding domestic demand, leading to a continuous recovery in valuations during the reporting period [4][26]. - The report highlights a significant increase in duty-free shopping in Hainan, with a year-on-year growth of 35% in the first week of the new policy implementation [2][18]. - The consumer services sector outperformed the market, with a reported increase of 4.04% during the period from October 27 to November 7, 2025, surpassing the Shanghai and Shenzhen 300 Index by 3.65 percentage points [1][13]. Summary by Sections Market Review - The consumer services sector rose by 4.04%, ranking fifth among all industry indices, while the Shanghai and Shenzhen 300 Index increased by only 0.39% [1][13]. - Notable stock performances included Caesar Travel (up 18.39%), China Duty Free (up 12.01%), and Quanjude (up 11.86%) [1][14]. Industry and Company Dynamics - Various regions in China are piloting spring and autumn vacation systems for primary and secondary schools to optimize student holiday structures [2][17]. - The new duty-free shopping policy in Hainan has expanded the range of products available, contributing to a significant increase in shopping amounts [2][18]. - The Ministry of Commerce and other departments have issued a plan to enhance urban commercial quality, aiming to stimulate consumption [2][19]. - Ele.me has initiated a brand refresh, testing the name "Taobao Flash Purchase" to enhance delivery services [2][20]. - Starbucks has sold a 60% stake in its China business to Boyu Capital for $4 billion, valuing the joint venture at over $13 billion [2][22]. Stock Holdings Analysis - Core stocks in the Hong Kong Stock Connect, such as Haidilao and Tianli International Holdings, saw increases in shareholding percentages during the reporting period [3][25]. Investment Recommendations - The report suggests a focus on companies like Atour, Huazhu Group, China Duty Free, and Ctrip, among others, for investment opportunities [4][26]. - Mid-term recommendations include China Duty Free, Meituan, and Haidilao, indicating a broad range of companies across the social services sector [4][26].