Investment Rating - The report maintains an "Outperform" rating for the social services industry, expecting it to perform better than the market index over the next 6-12 months [1]. Core Insights - The social services sector saw a 3.96% increase in the first two trading weeks of 2026, ranking 15th among 31 industries in the Shenwan classification. This performance outpaced the CSI 300 index by 1.77 percentage points [1][12]. - The New Year's holiday travel data showed positive trends, with 142 million domestic trips taken, a year-on-year increase of 5.2%, and total spending reaching 84.789 billion yuan, up 6.3% year-on-year [1][4]. - The report highlights the expectation for continued high demand in the travel sector, particularly with the upcoming Spring Festival holiday [4]. Summary by Sections Market Review & Industry Dynamics - The social services sector's performance was strong, with notable increases in sub-sectors such as education (+7.45%), professional services (+6.37%), and tourism retail (+3.77%) [12][16]. - Domestic air travel saw a total of 104,558 flights during the holiday period, a 1.99% increase from the previous week and 108.86% of the 2019 level [1][4]. Investment Recommendations - The report suggests focusing on companies with strong growth potential in the travel chain and related industries, including Tongcheng Travel, Huangshan Tourism, and Lijiang Shares, among others [4]. - It also recommends hotel brands like Jinjiang Hotels and ShouLai Hotels, which are expected to benefit from the recovery in business travel and increased market share [4]. Company Dynamics & Announcements - The report notes significant growth in the Hainan duty-free shopping market, with sales exceeding 1.21 billion yuan during the first week of January, marking an 88% year-on-year increase [28]. - The report mentions that the domestic hotel market is expected to see a price drop of over 50% compared to the upcoming Spring Festival holiday, indicating a favorable environment for travelers [28]. Travel Data Tracking - The report indicates that the recovery of business travel is nearly complete, with ongoing policy relaxations for inbound and outbound travel, including the expansion of visa-free entry for several countries [34].

Core Viewpoint - The report from CICC highlights Shanghai Airport's recent announcement regarding the signing of a duty-free store project operating rights transfer contract, indicating a positive outlook for future sales performance [1] Group 1: Duty-Free Business Development - Shanghai Airport announced that Du Furui won the bid for operating rights at Pudong T1+S1, while China Duty Free Group won the bid for Pudong T2+S2 and Hongqiao, with an operating period from early 2026 to the end of 2033 [1] - The company plans to establish a joint venture with the winning duty-free operator, holding a 49% stake in the new entity [1] - Rental terms are generally in line with market expectations, suggesting a stable revenue stream from the duty-free business [1] Group 2: Financial Forecasts - The company maintains its profit forecast for 2025 at 2.26 billion yuan, while raising the 2026 profit forecast by 3% to 2.82 billion yuan, primarily due to the unexpected joint venture with the duty-free operator [1] - The investment income forecast has been slightly adjusted upwards as a result of the joint venture [1] Group 3: Asset Disposal and Target Price - The announcement on November 21 regarding the recovery of state-owned land use rights and facility compensation is expected to bring one-time asset disposal gains, warranting attention on the progress of this transaction [1] - The target price remains unchanged at 34.5 yuan, corresponding to 38 times the 2025 P/E and 30 times the 2026 P/E, indicating a 12% upside potential from the current stock price [1] - The rating of "outperforming the industry" is maintained [1]