GUOTAI HAITONG SECURITIES·2026-01-23 00:25Investment Rating - The report assigns an "Increase" rating for the industry, indicating a potential growth exceeding 15% relative to the CSI 300 index [10]. Core Insights - The establishment of new duty-free shops at entry ports is expected to synergize with city duty-free stores, collectively expanding the domestic duty-free market [2][4]. - The recent notification from multiple government departments allows for the establishment of new duty-free shops at 41 entry ports, significantly increasing the convenience for inbound travelers to shop duty-free [4]. - The report recommends specific stocks, including China Duty Free Group and Wangfujing, while also mentioning Zhuhai Duty Free Group as a related stock [4]. Summary by Sections Industry Overview - The report highlights the collaboration between newly established entry port duty-free shops and existing city duty-free stores to enhance the overall market size [2]. Investment Highlights - The report notes that the new duty-free shops will allow travelers to purchase a certain amount of duty-free goods (up to 15,000 yuan) upon entry, thus facilitating increased consumer spending [4]. - The policy changes effective from November 1, 2025, will expand the product categories available in duty-free shops, including mobile phones, drones, sports goods, health foods, over-the-counter drugs, and pet foods [4]. Financial Projections - The report provides profit forecasts and valuations for key stocks, indicating that China Duty Free Group is expected to achieve a net profit of 42.67 billion yuan in 2024, with a projected PE ratio of 46 [5]. - Wangfujing is projected to have a net profit of 2.69 billion yuan in 2024, with a PE ratio of 65 [5].