Summary of Conference Call Notes Industry Overview - The conference call focuses on the **hotel**, **airline**, and **duty-free** industries, highlighting their performance and future outlook post-National Day in 2025 [1][3][11]. Key Points and Arguments Hotel Industry - **Strong Performance Post-National Day**: The hotel sector showed robust performance after the National Day, driven by a recovery in business travel rather than solely relying on consumer wealth effects [1][3]. - **Positive Growth Indicators**: Five-star hotel Average Daily Rate (ADR) has stabilized, with occupancy rates improving, leading to a positive growth in September for the first time [1][5]. - **Institutional Holdings**: The hotel sector's institutional holding ratio is at a 15-year low, which, combined with improving data and valuation advantages, has led to a rebound in hotel stocks [1][6]. - **Investment Opportunities**: Companies like Jin Jiang and Shou Tour have low PE ratios for 2026, indicating potential investment value [1][6][8]. - **Expansion and New Products**: Shou Tour is expanding its standard stores and launching new products to enhance acceptance among franchisees and consumers [8]. - **Growth of Budget and Mid-range Hotels**: Jin Jiang and Huazhu are showing signs of improvement, with Jin Jiang's RevPAR showing a positive trend in October [5][9]. Airline Industry - **Recovery in Passenger Volume**: Overall passenger volume increased by 5.2% year-on-year from January to September 2025, with international routes showing a significant recovery [4][15]. - **High Load Factors**: The airline sector maintains high load factors, with expectations for continued improvement in ticket prices [13][15]. - **Airline Recommendations**: China Eastern Airlines is highlighted as a strong investment opportunity due to its rapid recovery and performance exceeding pre-pandemic levels [4][19]. - **Cost Pressures Eased**: Low oil prices and favorable exchange rates have alleviated cost pressures for airlines, contributing to improved profitability [18][21]. - **Future Pricing Trends**: Ticket prices are expected to improve in the fourth quarter, although a potential decline may occur post-Spring Festival due to weaker business demand [16][21]. Duty-Free Industry - **Sales Growth**: The duty-free sector has shown consistent sales growth, with Hainan's offshore duty-free sales achieving positive growth for the first time in 18 months [11][12]. - **Policy Optimizations**: Recent policy changes in Hainan are expected to gradually release demand, positively impacting revenue and profit recovery for the end of the year and into 2026 [12]. Additional Important Insights - **Market Sentiment**: There is a growing market interest in the travel-related sectors, with data indicating sustained performance beyond holiday effects [3]. - **Investment Focus**: The hotel and duty-free sectors are identified as new consumption hotspots driven by fundamental improvements, with upcoming meetings in December and March expected to provide further insights into consumer demand [22]. - **Airport Performance**: Airports like Shanghai and Baiyun are benefiting from increased air traffic, with significant year-on-year growth in passenger numbers [20][21]. This summary encapsulates the key insights from the conference call, providing a comprehensive overview of the current state and future outlook of the hotel, airline, and duty-free industries.