Core Viewpoint - Chengdu's first city-based duty-free store is set to open soon, attracting attention from citizens and tourists with its prominent advertising and strategic location [1][14]. Group 1: Store Details - The duty-free store will be operated by China Duty Free Group and will cover an area of 3,140 square meters, located near the Chunxi Road business district, providing a significant geographical advantage [14]. - The store will cater to travelers holding valid exit-entry documents within 60 days, selling a variety of duty-free products including food, clothing, bags, and accessories [14]. - The store will adopt a "city selection, port pickup" model, promoting both international brands and domestic products, thereby enhancing the visibility of Chengdu brands in the international market [14]. Group 2: Opening Timeline and Public Interest - The store is expected to open between late September and early October, as confirmed by staff at the shopping center [3]. - Observations indicate that the store's construction is actively progressing, with various functional areas already defined, including trendy markets and beauty sections [9]. - There is notable public interest, with many citizens inquiring about the opening date upon seeing the promotional materials [9].

Investment Rating - The investment rating for the company is "Buy" with a market price of RMB 69.29 and a sector rating of "Outperform" compared to the market [2][4]. Core Views - The report indicates that the company's revenue decline is narrowing quarter-on-quarter, with a focus on the potential benefits from the Hainan duty-free policy and the growth of city channel sales [9][6]. - The company achieved a revenue of RMB 281.51 billion in the first half of 2025, a year-on-year decrease of 9.96%, and a net profit of RMB 26.00 billion, down 20.81% year-on-year [9][4]. - The report maintains a positive outlook on the company's long-term performance due to its leading position in various channels and the gradual opening of city stores contributing to revenue growth [6][9]. Summary by Sections Financial Performance - In Q2 2025, the company reported revenue of RMB 114.05 billion, a year-on-year decline of 8.45%, and a net profit of RMB 6.62 billion, down 32.21% year-on-year [9][4]. - The company’s market share in Hainan's duty-free shopping has increased, with Hainan expected to open its borders in December 2025, which may boost tourist numbers [9][6]. Revenue Projections - The adjusted earnings per share (EPS) forecasts for 2025-2027 are RMB 2.09, RMB 2.60, and RMB 2.87, respectively, with the current price corresponding to price-to-earnings ratios of 33.1, 26.6, and 24.1 times [6][8]. - The report anticipates a gradual recovery in revenue growth, with projections of 2.7% growth in 2025, followed by 8.3% and 6.4% in 2026 and 2027, respectively [8][9]. Market Position - The company is expanding its city duty-free stores, with new openings in cities like Guangzhou and Shenzhen, which are expected to contribute positively to future revenue [9][6]. - The report highlights the company's competitive advantage in the Hainan duty-free market, supported by favorable government policies and an expanding product range [9][6].

Core Viewpoint - Lingnan Holdings (000524) is actively expanding its business in the tourism sector, focusing on travel, accommodation, and related services, while also making strategic investments in duty-free operations and asset acquisitions to enhance its market position [1][2][3]. Group 1: Company Overview - As of August 8, 2025, Lingnan Holdings' stock price is 12.51 CNY, up 4.08% from the previous week, with a total market capitalization of 8.384 billion CNY, ranking 4th in the tourism and scenic area sector [1]. - The company aims to build a comprehensive tourism ecosystem that is internationally competitive and trusted, leveraging innovation and capital as dual engines for growth [1]. Group 2: Duty-Free Business Development - Lingnan Holdings has partnered with China Duty Free Group and other companies to establish a duty-free store in Guangzhou, with a registered capital of 45 million CNY, where Lingnan Holdings invested 8.775 million CNY, representing 19.5% of the total [2][4]. Group 3: Share Acquisition Plans - The controlling shareholder, Guangzhou Lingnan Tourism Investment Group, has signed an agreement to acquire 70% of Urban Hotel's shares, with a commitment to transfer these shares to Lingnan Holdings within three years at a fair market price [3][4].

Group 1 - The company reported its Q1 2025 earnings, showing a revenue of 16.746 billion yuan, a year-on-year decline of 10.96%, and a net profit attributable to shareholders of 1.938 billion yuan, down 15.98% year-on-year [1] - The Hainan market remains under pressure, but the company is actively optimizing operations, with inventory improving continuously. As of the end of Q1 2025, inventory stood at 15.751 billion yuan, a decrease of 9.21% from the beginning of the year [1] - The company's gross profit margin for Q1 2025 was 32.98%, a slight year-on-year decrease of 0.33 percentage points, while the sales expense ratio was 13.12%, a slight increase of 0.28 percentage points [1] Group 2 - The number of visa-free countries and international flight volumes are increasing, leading to a positive trend in airport duty-free business. Duty-free store revenue at Beijing airports grew over 115% year-on-year, while Shanghai airports saw a nearly 32% increase [2] - The company is responding to policy changes by adding city duty-free store projects, with 13 foreign exchange commodity duty-free stores transitioning to city duty-free stores within three months, enhancing the synergy between various sales channels [2] - The company is optimistic about the growth of duty-free business in Hainan post-border closure, with city duty-free business expected to contribute to performance in upcoming quarters [3]