Investment Rating - Investment rating for the social services industry is "Positive" (maintained) [1] Core Insights - The report highlights a robust growth in the tourism sector during the May Day holiday, with a significant increase in cross-regional travel demand and a notable rise in high-end hotel bookings [14][20] - The report indicates a strong performance in the trendy toy market, with a 39% year-on-year increase in the number of offline stores and a 17% increase in average store efficiency [27][28] - The Chinese restaurant market, particularly the Chinese noodle shop segment, is projected to grow significantly, with a compound annual growth rate of 11.6% from 2024 to 2029 [34] - The service robotics market is expected to grow rapidly, with a projected market size of 97 billion by 2028, driven by advancements in AI technology and increasing demand for efficient service [44][48] - The domestic beauty market is seeing a trend towards high-end products, with significant upgrades in product formulations and technology [50][51] Summary by Sections 1. Travel and Tourism - The May Day holiday is expected to see a peak in travel demand, with an estimated daily cross-regional flow of over 270 million people [14] - Domestic flight ticket prices have decreased, leading to a 29% increase in search interest among price-sensitive university students [18] - The trend of travel consumption is shifting towards lower-tier cities, with a 25% increase in tourism heat compared to higher-tier cities [18] 2. Trendy Toys - As of March 2025, the number of offline trendy toy stores reached 3,645, marking a 39% year-on-year growth [27] - The average store efficiency for trendy toy stores increased by 17% year-on-year, with significant variations among brands [28] 3. Restaurant Industry - The Chinese noodle shop market is projected to reach a total transaction value of 495.6 billion by 2029, with a compound annual growth rate of 11.6% from 2024 to 2029 [34] - The company "Encounter Small Noodles" achieved a revenue of 1.154 billion in 2024, reflecting a 44.2% year-on-year growth [37] 4. Service Robotics - The service robotics market in China is expected to grow from 30 billion in 2023 to 97 billion by 2028, with a compound annual growth rate of 26.5% [44][48] - The hotel sector is the largest segment within the service robotics market, projected to reach 36 billion by 2028 [45] 5. Beauty Industry - The beauty market is experiencing a shift towards high-end products, with significant upgrades in formulations and technology [50] - The "Giant Biological" brand launched an upgraded collagen stick, which has seen a 32% year-on-year growth in sales [51]

Group 1 - The core viewpoint is that the increase in risk appetite is a significant support for the market trend this year, with A50ETF Huabao (159596) seeing a notable rise in its major holding, Heng Rui Pharmaceutical, which increased by 3.7% [1] - The A-share market showed a collective rebound with the Shanghai Composite Index up by 0.18%, the Shenzhen Component Index up by 0.36%, and the ChiNext Index also up by 0.36% [1] - The trading volume in the market reached 746.3 billion yuan, a decrease of 55.3 billion yuan compared to the previous day, with over 4,000 stocks rising [1] Group 2 - Huatai Securities suggests that with the recent catalytic window for pan-technology assets closing, investors are looking for sectors with potential support, particularly in the pan-consumption industry [2] - The report highlights that consumption promotion is a key policy focus for 2025, with specific measures being rolled out, indicating a clearer approach [2] - The analysis indicates that the fundamentals of the pan-consumption sector are showing signs of improvement, supported by stable employment, expanded social security spending, and a bottoming out of housing prices [2] Group 3 - Ping An Securities emphasizes that the increase in risk appetite is crucial for the market this year, suggesting that besides the technology sector, investors should also consider structurally favorable opportunities in lower-valued consumption sectors [2] - Specific sectors recommended for attention include the home appliance industry, benefiting from substantial subsidies, and the consumer electronics industry, which is expected to gain from AI integration [2] - The report notes that while the liquor industry is facing downward revisions in profit expectations, its PE valuation is currently below the historical 20% percentile, presenting potential short-term trading opportunities [2] Group 4 - Investors can consider A50ETF Huabao (159596) and its associated off-market funds (Class A 021216/Class C 021217) for investment positioning [3]

Group 1: Consumption Policy and Market Trends - The government is expected to implement policies to promote childbirth, with significant subsidies announced in Hohhot, which may catalyze demand in the maternal and infant sector, benefiting companies like Aiyingshi and Haiziwang [6][8] - The retail sector is seeing a shift towards quality supermarkets, driven by consumer demand for better product quality, with companies like Yonghui Supermarket and Chongqing Department Store expected to expand [7][8] - The "AI + Consumption" initiative is being emphasized, with potential growth in sectors like AI-integrated eyewear and e-commerce, highlighting companies such as Mingyue Optical and Ruoyuchen [2] Group 2: Company-Specific Developments - Aimeike plans to acquire REGEN Biotech, which could enhance its market position and valuation, as the acquisition is expected to provide significant growth opportunities in both domestic and international markets [3] - The 3.8 promotion event on platforms like Tmall and Douyin showed strong performance, with brands like Juzi and Marubi exceeding expectations, indicating a robust recovery in the beauty sector [4][5] - Gaode Beauty reported a 9.3% increase in net sales for 2024, with significant growth in its aesthetic injection segment, particularly in China, where new products are expected to drive further growth [6]

Investment Rating - The investment rating for the social services industry is "Positive" (maintained) [1] Core Insights - The report highlights the strong performance of Ctrip, which achieved revenue of 12.8 billion yuan in Q4 2024, representing a year-on-year increase of 23.5%, slightly exceeding Bloomberg's consensus forecast [9] - The report emphasizes the growth of the creator economy, driven by the proliferation of digital content platforms and AI productivity tools, which have lowered the barriers to entry for content creation [19][21] - The IP and apparel sector is experiencing a transformation, with leading companies moving from product-centric models to lifestyle branding, unlocking significant market potential [29][33] Summary by Sections Travel and Tourism - Ctrip's revenue from accommodation booking, transportation ticketing, vacation travel, and business travel management reached 5.2 billion, 4.8 billion, 0.9 billion, and 0.7 billion yuan respectively, with year-on-year growth rates of 33%, 16%, 24%, and 5% [9][12] - The company is increasing its international business investments, with overseas hotel and flight bookings growing over 70% year-on-year [11] Creator Economy - The creator economy is expanding rapidly, with active creators on content platforms increasing by 62% year-on-year, particularly on WeChat Video and Douyin [21] - AI tools are enhancing content production efficiency, allowing non-professionals to participate in content creation [26][28] IP and Apparel - The global IP licensing market reached $356.5 billion in 2023, with apparel being the largest category at 14.3% [33][37] - In China, the IP licensing market grew to $13.77 billion in 2023, surpassing Germany to become the fourth-largest market globally [38] Company Performance - The report notes that the same-store sales for Mixue Ice City reached 143,000 yuan in January 2025, a year-on-year increase of 17.4%, indicating strong operational resilience [47] - Mixue Ice City is expanding its product offerings and has established a significant presence in Southeast Asia, with over 4,800 stores [57]