Changjiang Securities·2025-12-22 14:43Investment Rating - The investment rating for the company is "Buy" and is maintained [10] Core Insights - The company has recently won the bid for duty-free store projects at Shanghai Pudong International Airport and Shanghai Hongqiao International Airport, which is expected to enhance profit-sharing and operational efficiency [2][6] - The new revenue model includes a base fee plus a commission structure, which is rationalized, indicating potential profitability for the operating entities [2][8] - The company is positioned as a leader in China's duty-free industry, with significant competitive advantages accumulated over 40 years, including channel access, scale, and refined operational management [2][8] Summary by Sections Event Description - The company’s subsidiary has received a bid notification confirming the award for duty-free operations at two major airports in Shanghai, with a total operational area of approximately 12,101.53 square meters [6][7] - The investment structure involves a joint venture with a 51% stake held by the company and a 49% stake by Shanghai Airport, with a total investment of 102 million yuan [6][7] Revenue Model - The operational transfer period follows a "5+3" model, with a fixed monthly fee and a commission based on actual sales, ensuring a stable revenue stream [7] - The fixed fees are set at 3,090 yuan/m²/month for Pudong Airport and 2,827 yuan/m²/month for Hongqiao Airport, with commission rates ranging from 8% to 24% [7] Future Outlook - The company is expected to benefit from a recovery in sales as outbound travel increases, with projected net profits for 2025, 2026, and 2027 being 3.69 billion, 4.27 billion, and 4.97 billion yuan respectively [2][8] - The company maintains a strong competitive position in the duty-free market, with anticipated growth in sales driven by increased passenger traffic at airports [2][8]