Core Viewpoint - The opening of the duty-free store at Beijing Capital International Airport's Terminal 3 marks a significant milestone in enhancing the airport's commercial offerings and aligns with national strategies to boost consumption and establish Beijing as an international consumption center [6]. Group 1: Opening Ceremony - The duty-free store at Terminal 3 officially opened on February 13, 2026, with key figures from the Capital Airport Group and China Tourism Group in attendance [1]. - The ceremony included a speech by Wang Yangguang, Chairman and General Manager of China Duty Free Group (CDFG) [1]. Group 2: Store Features and Promotions - The upgraded duty-free store aims to provide a richer product matrix, stable high-end supply, and competitive pricing through innovative store design and digital member services [2]. - During the opening period coinciding with the Spring Festival travel rush, CDFG launched a promotional campaign offering discounts on various products, including fragrance items at up to 60% off and food and beverages at up to 15% off for registered members [2]. Group 3: Strategic Importance - The new duty-free stores at Terminals 2 and 3 cover approximately 14,200 square meters of core commercial space, representing a new phase in the airport's duty-free business [6]. - This initiative is part of a broader effort to respond to national consumption strategies and enhance Beijing's role as a hub for international commerce and exchanges [6].

Core Viewpoint - China Duty Free Group (中国中免) shares rose nearly 3%, with a current price of 102 HKD and a trading volume of 247 million HKD, driven by the new duty-free policy and demand for the Spring Festival [1] Group 1: Market Performance - The report from Huajin Securities indicates that in January 2026, the total monitored duty-free shopping amount by Haikou Customs reached 4.53 billion CNY, a year-on-year increase of 44.8% [1] - The number of shoppers reached 560,000, reflecting a year-on-year increase of 21.0%, while the number of items purchased was 3.367 million, up 14.0% year-on-year [1] - The increase in both per capita spending and average item price indicates strong demand for high-end and packaged products during the Spring Festival, effectively offsetting reliance on mere customer flow growth [1] Group 2: Seasonal Trends - During the first week of the Spring Festival travel rush (February 2-8), the monitored duty-free shopping amount was approximately 1.106 billion CNY, a week-on-week increase of 6.3% [1] - The number of duty-free shoppers was 191,900, showing a week-on-week increase of 26% [1] - The dual flow of "returning home" and "traveling" has resulted in strong consumption momentum, with expectations for continued release of consumption potential as the Spring Festival Golden Week begins on February 17 [1] Group 3: Strategic Developments - China Duty Free Group's Haikou International Duty-Free City has won the qualification to operate duty-free retail in the Haikou West Coast consumer goods market [1] - The company plans to attract customer traffic during the Spring Festival through the integration of "duty-free + cultural tourism" activities [1]

智通财经APP获悉，中国中免(01880)涨近3%，截至发稿，涨2.31%，报102港元，成交额2.47亿港元。 消息面上，华金证券研报指出，受益于离岛免税新政效应叠加春节备货需求，2026年1月海口海关共监 管离岛免税购物金额45.3亿元(同比+44.8%)，购物人数56.0万人次(同比+21.0%)，购物件数336.7万件(同 比+14.0%)。该行认为，人均消费与件均价的双升，反映出在春节送场礼景及下备，货高客单价的精品 与套装类商品需求旺盛，有效对冲了单纯依靠客流增长的依赖。 该行续指，春运首周(2月2日—2月8日)，海口海关共监管离岛免税购物金额约11.06亿元(环比+6.3%);免 税购物人数19.19万人次(环比+26%)。在"返乡"与"出游"双向客流叠加下，离岛免税消费动能强劲，预 计随着2月17日春节黄金周开启，消费潜力有望持续释放。中国中免旗下海口国际免税城中标海口西海 岸商圈日用消费品免税经营主体资格，并在春节期间持续通过"免税+文旅"融合活动吸引客流。 ...

Core Viewpoint - The Hainan province is launching over 200 Spring Festival promotional activities from now until March 3, aimed at boosting consumer spending across various sectors [2]. Group 1: Promotional Activities Overview - The promotional activities cover eight major categories: "Island-wide Discounts," "New Year Gifts," "Online Shopping," "Culinary Celebrations," "Duty-Free Benefits," "Invoice Lottery," "Financial Support," and "Cultural Tourism" [2][3]. - Activities include purchasing New Year goods, upgrading home appliances, duty-free shopping, dining experiences, live-stream shopping, and tourism [2]. Group 2: Specific Initiatives - In the "Island-wide Discounts" category, major shopping districts and supermarkets will host events such as markets, food tasting, and cultural performances, offering discounts, member rewards, and interactive lotteries [2]. - The "New Year Gifts" category features government subsidies and merchant discounts for purchasing home appliances and mobile phones, with brands like Gree, Midea, Huawei, and Xiaomi participating [2]. - The "Online Shopping" segment includes a live-streaming e-commerce festival, allowing consumers to shop for local products like tropical fruits and seafood [2]. Group 3: Culinary and Duty-Free Promotions - The "Culinary Celebrations" category will distribute dining vouchers for family reunion meals and feature food festivals and cultural experiences [3]. - The "Duty-Free Benefits" category includes the opening of five duty-free stores and various promotional activities such as gift boxes and consumption vouchers [3]. Group 4: Additional Incentives - The "Invoice Lottery" initiative in Haikou allows individuals to participate in a lottery with a maximum prize of 800 yuan by obtaining electronic invoices from various sectors [3]. - Financial institutions like China Construction Bank and Bank of Communications are offering consumer red envelopes and discounts at duty-free shops and restaurants [3]. - The "Cultural Tourism" category will feature events such as village performances and special exhibitions in museums [3].

Market Overview - The Asia-Pacific stock markets showed mixed performance, with South Korea's KOSPI index rising by 3.1% to 5,522 points and Thailand's index increasing by 2.1% to 1,441 points, while Hong Kong's Hang Seng index fell by 0.9% to 27,032 points[17][9]. - In the U.S., major indices declined significantly, with the Dow Jones dropping 1.34% to 49,451 points, the S&P 500 down 1.57% to 6,832 points, and the Nasdaq falling 2.03% to 22,597 points[7][6]. Economic Indicators - The International Energy Agency (IEA) revised down its global oil demand growth forecast, contributing to a 2.77% drop in WTI crude oil prices, closing at $62.84 per barrel[23]. - Strong U.S. employment data led to a decrease in gold prices, which fell below $5,000 per ounce, closing at $4,923.7[23]. Currency Movements - The British pound fell for three consecutive days, trading at 1.362 against the U.S. dollar, while the Japanese yen appreciated for four days, reaching 152.74 per dollar[23]. - The U.S. dollar index increased by 0.1% to 96.93, while the dollar's value against the Chinese yuan was 6.901, up by 0.2%[22]. Fixed Income Market - U.S. Treasury yields fell to year-to-date lows, with the 30-year yield dropping to 4.73% after strong demand in a recent auction[26]. - The Asian bond market saw reduced trading activity, but some segments experienced narrowing spreads due to buying interest[26]. Sector Performance - In the A-share market, the Shanghai Composite Index rose slightly by 0.05%, while the Shenzhen Component increased by 0.86%, driven by a surge in the computing power industry[13]. - Conversely, large technology stocks in Hong Kong faced declines, with notable drops in companies like Alibaba and Tencent, while semiconductor stocks showed strength[9].

Group 1 - The implementation of the "zero tariff" policy for island residents is expected to boost consumption in Hainan Free Trade Port, with a focus on high-frequency consumer goods [2] - In January 2026, the duty-free shopping amount reached 4.53 billion yuan, a year-on-year increase of 44.8%, indicating strong demand during the Spring Festival [1] - The number of shoppers in January was 560,000, reflecting a 21.0% year-on-year increase, with an average spending of approximately 8,089 yuan per person, up 19.7% year-on-year [1] Group 2 - China Duty Free Group has secured the qualification for duty-free operations in Haikou's West Coast business district, enhancing its market presence [3] - The company is actively integrating duty-free shopping with cultural tourism to attract more customers during the Spring Festival [3] - Investment opportunities are suggested in companies like China Duty Free Group, Wangfujing, and Hainan Airport, which are positioned to benefit from the evolving duty-free landscape [3]

Group 1: Target Price Increases - Semiconductor company SMIC (中芯国际) has a target price increase of 45.82%, with a new target price of 170.00 CNY [2][3] - Chemical pharmaceutical company Kelun Pharmaceutical (科伦药业) has a target price increase of 42.98%, with a new target price of 45.41 CNY [2][3] - Professional engineering company Yaxing Integration (亚翔集成) has a target price increase of 34.30%, with a new target price of 189.20 CNY [2][3] Group 2: Broker Recommendations - A total of 20 listed companies received broker recommendations on February 12, with Top Group (拓普集团) and China Duty Free Group (中国中免) each receiving recommendations from 2 brokers [4] - Wanhua Chemical (皖维高新) received a "Recommended" rating from Guolian Minsheng Securities [5][7] - Longxin General (隆鑫通用) received a "Buy" rating from Kaiyuan Securities [5][7] - Weilon Co., Ltd. (伟隆股份) received an "Increase" rating from Dongwu Securities [5][7] - AVIC Xi'an Aircraft Industry Group (中航西飞) received an "Outperform" rating from Guoxin Securities [5][7] - Giant Star Technology (巨星科技) received an "Increase" rating from Western Securities [5][7] Group 3: First Coverage - On February 12, brokers provided 7 instances of first coverage, indicating a growing interest in various companies [5]

Summary of Conference Call Notes Company and Industry Overview - **Company**: China Duty Free Group (中国中免) - **Industry**: Duty-Free Retail, specifically focusing on Hainan's offshore duty-free market Core Insights and Arguments - **Performance Recovery**: The company has established a fundamental turning point since Q3 2025 after experiencing a performance downturn from Q2 2024 to Q3 2025. The recovery is supported by new policies related to offshore duty-free sales and inbound tourism, leading to strong growth in sales and a significant rebound in stock prices [1][2] - **Sales Growth**: In January 2026, Hainan's offshore duty-free sales achieved a strong start, with expectations for continued growth in volume and price during the holiday season [1][2] - **Long-term Outlook**: The full closure of Hainan Island is expected to create substantial incremental space for local business and tourism retail, solidifying the company's leading position in the duty-free market [2] Key Data Points - **Sales Performance**: - September 2025 marked the first month of positive growth in offshore duty-free sales since February 2024, with October showing a year-on-year increase of 13.1%, November at 27.1%, and December at 46.8% [3] - January 2026 recorded a year-on-year increase of 44.8% [3] - **Policy Adjustments**: In November 2025, adjustments to the duty-free shopping policy for travelers were made, optimizing purchasing qualifications and product categories, which are expected to provide clear incremental benefits in the medium to long term [5] Additional Important Insights - **Market Dynamics**: The company is expected to maintain a competitive advantage in Hainan's retail market due to its core property layout, supply chain resources, and operational capabilities [5][8] - **Airport Duty-Free Bidding**: The bidding for core airport duty-free segments in Shanghai and Beijing has been finalized, with limited negative impact on the company's profits from non-winning bids. The competitive landscape is expected to favor a few leading operators [6] - **Future Earnings Projections**: For Q1 2026, the company’s net profit is projected to be between 2.23 billion to 2.55 billion yuan, reflecting a year-on-year growth rate of 15.2% to 31.4% [7] - **Investment Recommendations**: The company is recommended for continued investment due to the established recovery trend in offshore duty-free sales and supportive government policies aimed at boosting consumption [9] Conclusion - The overall sentiment is optimistic regarding the company's performance and the duty-free industry in Hainan, with expectations for strong growth driven by favorable policies, market recovery, and strategic expansions. The company maintains a "Buy" rating based on these insights [9]

Core Insights - The report highlights significant changes in the stock holdings of various companies under the Hong Kong Stock Connect program, indicating shifts in investor sentiment and potential investment opportunities. Group 1: Stock Increases - JunDa Co., Ltd. (02865) saw the largest increase in stock holdings, rising by 5.09% to a total holding of 58.82% [2] - Lion Group Holding (02562) experienced a 1.26% increase, bringing its holding to 49.45% [2] - Fudan Zhangjiang (01349) had a 1.15% increase, with a current holding of 41.95% [2] - In the last five trading days, Xi Xiang Feng Group (02473) had the highest increase of 13.46%, reaching a holding of 29.42% [5] - JunDa Co., Ltd. (02865) also saw a significant increase of 12.56% in the same period [5] - Southern Hengsheng Technology (03033) increased by 2.64%, with a holding of 68.12% [5] Group 2: Stock Decreases - GuoEn Technology (02768) experienced the largest decrease in stock holdings, down by 2.04% to 14.15% [3] - Western Cement (02233) saw a reduction of 0.73%, with a holding of 37.74% [3] - Reconstruct Energy (02570) decreased by 0.70%, now holding 13.50% [3] - In the last five trading days, Tianqi Lithium (09696) had the most significant decrease of 9.13%, with a holding of 28.52% [6] - GX Hengsheng Technology (02837) decreased by 2.89%, now at 17.87% [6] - Dongfang Electric (01072) saw a reduction of 2.43%, with a holding of 20.85% [6] Group 3: Long-term Trends - Over the past 20 days, Xi Xiang Feng Group (02473) had a substantial increase of 26.66%, reaching a holding of 29.42% [8] - JunDa Co., Ltd. (02865) also saw a notable increase of 14.96%, with a holding of 58.82% [8] - Sanhua Intelligent Control (02050) increased by 9.17%, now holding 33.98% [8] - In contrast, Tianqi Lithium (09696) had a decrease of 9.31%, with a holding of 28.52% [9] - Goldwind Technology (02208) decreased by 8.75%, now at 42.81% [9] - Zhejiang Shibao (01057) saw a reduction of 5.48%, with a holding of 53.61% [9]

Investment Rating - The industry investment rating is "Outperform the Market" (maintained) [3][9] Core Insights - January saw a strong start for duty-free shopping, with Hainan's offshore duty-free shopping amounting to 4.53 billion yuan, a year-on-year increase of 44.8% [6] - The implementation of the "zero tariff" policy for residents in Hainan is expected to further stimulate consumption [6] - The demand for high-priced premium and packaged goods has surged, reflecting a robust consumer sentiment during the Spring Festival [6] Summary by Sections Industry Performance - In January, the total duty-free shopping amount reached 4.53 billion yuan, with 560,000 shoppers and 3.367 million items purchased, showing increases of 21.0% and 14.0% year-on-year respectively [6] - The average spending per person was approximately 8,089 yuan, up 19.7%, while the average price per item rose by 27.0% to 1,345 yuan [6] Policy Developments - The "zero tariff" policy allows Hainan residents to purchase specified imported goods up to a value of 10,000 yuan per person per year without paying import duties, VAT, or consumption tax [6] - The first batch of goods includes 202 frequently consumed items, aimed at enhancing the benefits of the free trade port and meeting local consumer needs [6] Supply Side Developments - China Duty Free Group has secured the right to operate duty-free retail in the Haikou West Coast area and is actively engaging in promotional activities [6] - Zhuhai Duty Free Group has transitioned to a major consumer platform focused on duty-free sales, with its first store in Sanya officially opening on February 11 [6] Investment Recommendations - The report suggests focusing on companies such as China Duty Free Group, Wangfujing, and Hainan Airport, as the policy changes and sales data indicate a recovery in the industry [6]