Core Viewpoint - The service industry is showing signs of stabilization and bottoming out after experiencing price pressure and same-store sales decline in 2024, with expectations for a recovery in demand and pricing turning points in 2026 [1][2] Group 1: Industry Outlook - The service consumption sector is expected to see an increase in quality brands emerging and growing, supported by improved infrastructure for chain operations [1] - External factors such as competition from delivery platforms, new social security regulations, and the rise of pre-prepared meals are likely to optimize the competitive landscape in the long term, benefiting leading companies [1] - The restaurant and hotel sectors are identified as the most conducive for nurturing large companies [1] Group 2: Company Focus - Companies that can successfully navigate brand differentiation and lifecycle challenges are likely to emerge as winners, characterized by their ability to meet consumer value demands, possess comprehensive operational capabilities, and capture ongoing growth drivers [1] - In the restaurant sector, beverage brands in 2026 will need to be cautious of high baselines and competitive disruptions, but leading brands are expected to achieve stable performance and gradually replace smaller chains [2] - The hotel sector is anticipated to see a rebalancing of supply and demand, with a forecasted slowdown in supply growth, while high-quality leaders are expected to expand market share even during industry downturns [2] Group 3: Market Dynamics - The service industry is characterized by strong cyclical attributes, with a long-term trend towards increased flexible employment penetration [2] - The duty-free sales sector is at a low point, with attention on the potential impact of Hainan's reopening and the expansion of local channels [2] - Tourism pricing pressures and expenditure may lead to weaker stability in performance growth, with a focus on the development of scenic projects and improvements in transportation as potential catalysts [2]

Core Viewpoint - The report from China International Capital Corporation (CICC) indicates that the social services industry is expected to stabilize and bottom out in 2025 after experiencing price pressures and same-store sales declines in 2024, with a gradual easing of price wars and a potential recovery in same-store sales [1] Industry Summary - The social services industry is projected to see a recovery in 2026, driven by domestic demand recovery and policy expansion, with a focus on companies with strong internal growth capabilities and high-growth segment leaders [1] - The restaurant sector, particularly beverages, will face challenges in 2026 due to high base effects and competitive landscape disruptions, but leading brands are expected to achieve stable performance and gradually replace smaller chains [1] - The fast food segment shows resilience, while the full-service restaurant brands will experience ongoing differentiation in same-store sales [1] - The hotel industry is anticipated to rebalance supply and demand, with a slowdown in supply growth expected despite positive growth, as RevPAR (Revenue Per Available Room) continues to decline for two years [1] - The recovery of business demand is crucial for RevPAR to turn positive, with high-quality leading brands likely to expand market share even during industry downturns [1] - The labor service sector exhibits strong cyclical attributes, with a long-term trend of increasing flexible employment penetration [1] - Duty-free sales are at a low point, with attention on the marginal changes brought by the Hainan closure and the expansion of local channels [1] - The tourism sector faces price pressures and cost inputs that may weaken performance stability, with a focus on the development of scenic projects and improvements in transportation as potential catalysts [1]