Core Viewpoint - The current closure policy measures can be summarized as "four more" to enhance the establishment of the free trade port policy system in Hainan [1] Group 1: Policy Measures - Implementation of a more favorable "zero tariff" policy for goods, increasing the proportion of "zero tariff" items from 21% to 74% for "first line" imports, allowing tax-free circulation among eligible entities within the island [1] - Adoption of more relaxed trade management measures, opening up arrangements for certain prohibited and restricted import goods in the "first line" import direction [1] - Introduction of more convenient passage measures, utilizing eight existing open ports as "first line" ports for eligible imported goods, and establishing ten "second line" ports with innovative passage measures for goods entering the mainland [1] - Implementation of a more efficient and precise regulatory model, ensuring low intervention and high efficiency in the supervision of "zero tariff" goods and those with relaxed trade management measures [1]

Investment Rating - The report maintains an "Outperform" rating for Hainan Airport, indicating a positive outlook for the company's stock performance relative to the market [3][7]. Core Insights - The increase in shareholding by the controlling shareholder, Hainan Airport Group, signals confidence in the company's future development and strategic value as a hub in Hainan Free Trade Port [7]. - The company's short-term performance is under pressure, but profitability is expected to improve in the long term as it focuses on its core airport operations [7]. - The ongoing expansion of Sanya Phoenix International Airport is a key project that will enhance the company's operational capacity and growth potential [7]. - Adjustments to profit forecasts for 2024 and 2025 reflect the impact of previous high revenue from real estate and the slow recovery of duty-free consumption [7]. Financial Data and Profit Forecast - Total revenue for 2023 is projected at 6,762 million, with a significant decrease expected in 2024 to 5,106 million, reflecting a year-on-year decline of 24.5% [6][9]. - The net profit attributable to the parent company is expected to drop to 462 million in 2024, a decrease of 51.6% compared to the previous year [6][9]. - The company's gross margin is forecasted to decline from 48.9% in 2023 to 35.6% in 2024, with a gradual recovery expected thereafter [6][9]. - The estimated target market value for 2025 is projected to be 448 billion, based on a sum of valuations from its core airport and duty-free businesses [7].