Investment Rating - The industry investment rating is "Positive" (maintained) [4] Core Insights - The tourism sector is expected to experience high growth in 2025, with inbound travel demand surging. In H1 2025, tourism trips increased by 20.6% year-on-year, and travel spending grew by 15.2%. The trend of younger and more localized tourism continues, with 45% of travel orders during the "May Day" holiday coming from the post-95 generation [2] - Online Travel Agencies (OTAs) are benefiting from the overall growth in the tourism market, maintaining a stable market structure. Major OTAs like Tongcheng and Ctrip reported revenue growth of 10.0% and 16.2% respectively in Q2 2025, exceeding market expectations [2] - The offline retail sector is undergoing transformation, with supermarkets expected to accelerate profit release due to store renovations and supply chain improvements. The retail landscape is improving, with supermarkets showing better performance compared to department stores [4][5] - The restaurant sector is recovering faster than hotels, with a focus on wedding and niche markets. However, the overall restaurant market is under pressure, with a 3.8% year-on-year increase in retail sales from January to July 2025 [7] - The e-commerce sector is rebounding, with online retail sales reaching 3.12 trillion yuan in Q2 2025, a year-on-year increase of 6.29%. Instant retail is emerging as a new growth driver, with the market expected to reach 780 billion yuan by 2024 [10][11] Summary by Sections Tourism - Inbound tourism demand is accelerating, with a 15.8% increase in entry and exit trips in H1 2025, and a 30.2% increase in foreign visitors [2] - Major OTAs are performing well, with Tongcheng's revenue at 4.669 billion yuan (up 10.0%) and Ctrip's revenue at 14.843 billion yuan (up 16.2%) in Q2 2025 [2] Retail - The retail sector is seeing varied growth across formats, with supermarkets growing by 5.2% and convenience stores by 7.0% in the first seven months of 2025 [4] - Supermarket renovations are expected to enhance customer attraction and profitability [4] Restaurants and Hotels - The restaurant sector is under pressure, with a 3.8% increase in retail sales in the first half of 2025, while hotel RevPAR is facing challenges [7] - Major hotel chains are experiencing a decline in RevPAR, with some companies showing resilience through operational efficiency [7] E-commerce - E-commerce is recovering, with Q2 2025 online retail sales reaching 3.12 trillion yuan, a 6.29% year-on-year increase [10] - Instant retail is projected to grow significantly, with the market expected to reach 780 billion yuan by 2024 [10][11] Cross-border E-commerce - Platform-based companies are showing stable performance, with revenue growth for companies like Xiaoshangcheng and Jiaodian Technology at 14% and 16% respectively in H1 2025 [12] - Product-based companies are experiencing revenue resilience but face profit uncertainties due to external factors [12] Baby and Maternity Retail - The industry is being catalyzed by supportive policies, with steady recovery in same-store sales [16] - Companies like Haiziwang and Aiyingshi are optimizing store structures and launching new brands to enhance profitability [16]