Core Viewpoint - Morgan Stanley reports that the bidding results for duty-free shops at Shanghai and Beijing airports are expected to be announced this month, with current operations managed by Sunrise, a company 51% owned by China Duty Free Group [1] Summary by Relevant Sections Financial Impact - For the first half of this year, offline sales at Shanghai Airport are projected to contribute approximately 10% to China Duty Free's revenue and 0.7% to its net profit, while the contribution from Beijing Airport is expected to be in the low single digits [1] Stock Price Projections - Morgan Stanley sets a target price of HKD 60 for China Duty Free's H-shares and CNY 66 for its A-shares, maintaining a "market perform" rating [1] Scenario Analysis - The base case scenario assumes China Duty Free secures one contract at each airport and utilizes its wholly-owned duty-free licenses, leading to stable stock prices - If China Duty Free secures contracts at both airports while using both its own licenses and Sunrise's licenses, stock prices may rise by 5% to 10% - Conversely, if Sunrise secures contracts at both airports, China Duty Free's stock could decline by 5% to 10% [1]

摩根士丹利发布研报称，上海机场（600009）及北京机场的免税店投标结果，预计将于本月公布。目前 两个机场的免税店，均是由中国中免（601888）(01880)占51%股权的Sunrise公司所经营。该行料今年上 半年，上海机场线下销售对中国中免的收入及净利润贡献分别约为10%及0.7%，而北京机场的收入贡献 应为低单位数。该行现予中国中免H股目标价60港元，中国中免(601888.SH)A股目标价66元人民币，均 予"与大市同步"评级。 该行列出多个假设情景，基准情形为中国中免在上海及北京机场各获得一份合约，并使用其自身全资持 有的免税牌照，集团将在线下渠道增加更多高利润产品，并在Sunrise线上平台提供具价格竞争力的产 品;此情况下，集团的股价将大致平稳。如中国中免在上海及北京机场各获得一份合约，同时使用其全 资持有牌照和Sunrise的牌照，股价可能上升5至10%。如Sunrise分别同时在两个机场各获得一份合约， 则中国中免的股价或下跌5%至10%。 ...

Core Viewpoint - The new offshore duty-free policy in China, effective from November 1, aims to expand the range of duty-free products and increase the number of eligible consumers, showing initial positive effects on sales and customer engagement [1] Group 1: Policy Implementation - The new offshore duty-free policy began on November 1, enhancing the variety of duty-free products and broadening the consumer base [1] - The Haikou Customs reported that from November 1 to 7, the total amount of duty-free shopping in Hainan reached 506 million yuan, with 72,900 shoppers, marking year-on-year increases of 34.86% and 3.37% respectively, indicating the policy's initial impact [1] Group 2: Retail Strategy - Duty-free shops at ports and in cities will actively promote the sale of domestic products in accordance with the new policy [1] - The expansion of product categories in duty-free stores aims to enhance shopping options for travelers and improve the overall shopping experience through online reservation services [1]

Core Viewpoint - The potential exclusion of RiShang Duty Free from the Shanghai airport duty-free bidding process raises concerns about the future of the company and the implications for foreign investment in China [1][2]. Group 1: Company Background - RiShang Duty Free (Shanghai) Co., Ltd. was established in June 1999 and is recognized as the first foreign enterprise operating airport duty-free shops in China [1]. - The company has been a prominent player in the Chinese airport duty-free market, ranking among the top 10 global travel retailers in 2015 and 2016 according to the Moodie Davitt Report [1]. Group 2: Recent Developments - On December 6, 2023, a board meeting was held where the chairman, appointed by the major shareholder China Duty Free Group (CDFG), opposed RiShang Shanghai's participation in the bidding for the Shanghai airport duty-free project [1]. - The bidding process for the Shanghai Pudong and Hongqiao International Airport duty-free shops commenced on November 17, 2023, and is set to close on December 9, 2023 [1]. Group 3: Legal and Regulatory Context - Following the implementation of the Foreign Investment Law in China, RiShang Shanghai is legally qualified to participate in the bidding process, as foreign investment restrictions no longer apply to duty-free operations [2]. - The bidding documents for Shanghai airport reaffirm that capable foreign-invested enterprises can participate, aligning with national laws and agreements with major shareholders [2]. Group 4: Potential Consequences - If RiShang Shanghai is unable to participate in the current bidding, it may lead to the loss of its main business, risking dissolution and affecting thousands of employees and related businesses [3]. - The situation is seen as a significant indicator of the foreign investment environment and the level of institutional openness in China [2].

Core Viewpoint - The recent upgrade of China's duty-free shop policy, effective from November 1, aims to expand the range of products available and enhance the shopping experience for travelers, thereby boosting the duty-free economy [1] Group 1: Policy Changes - The upgraded duty-free policy broadens the scope of benefits, catering to diverse consumer shopping needs and increasing the attractiveness of duty-free shops for inbound and outbound travelers [1] - The new policy allows for more domestic products to be sold in duty-free shops, including traditional Chinese brands and cultural heritage items [8] Group 2: Store Openings and Offerings - The first city-based duty-free shop in Tianjin opened on November 28, featuring a business model that combines duty-free and taxable goods, as well as online and offline sales [5] - The duty-free shop in Xi'an incorporates local cultural elements into product design and store decoration, creating a new consumption scene [11] Group 3: Market Dynamics - The relaxation of approval processes for duty-free shops grants more autonomy in establishing and scaling operations, allowing for tailored offerings based on local market conditions [14] - The introduction of online reservation services for duty-free products enhances the shopping experience for travelers, enabling them to pre-order items based on their travel itineraries [17]

Core Viewpoint - The recent policy changes regarding duty-free shops in China aim to enhance consumer spending and support the growth of the duty-free industry, with new stores opening in major cities and a focus on promoting domestic products [1][9]. Group 1: Policy Changes and Industry Impact - The Ministry of Finance, Ministry of Commerce, Ministry of Culture and Tourism, and other departments have issued a notification to improve duty-free shop policies starting November 1, 2025, to boost consumption [1]. - The new policy allows for more autonomy in the establishment and scale of duty-free shops, indicating a shift towards a more market-driven approach [9]. - The approval process for setting up and operating duty-free shops has been simplified, enhancing efficiency and allowing local governments to optimize shop layouts based on regional characteristics [11]. Group 2: New Store Openings - The first city-based duty-free shop in Tianjin has opened in a central commercial area, featuring a mix of duty-free and taxable zones, catering to travelers with outbound tickets [4]. - A new city-based duty-free shop has also opened in Xi'an, incorporating local cultural elements into its design and product offerings, creating a unique shopping experience [7]. Group 3: Promotion of Domestic Products - The new city-based duty-free shops are increasing the availability of domestic products, including traditional Chinese brands and cultural items, to enhance consumer choice [12][14]. - The customs authority has introduced measures to support the sale of domestic products in duty-free shops, with plans to include a wider range of goods such as electronics and health products [16]. - The policy encourages duty-free shops to allocate at least 25% of their sales area to domestic products, aiming to boost the market recognition and international competitiveness of Chinese goods [21]. Group 4: Enhanced Consumer Experience - The new regulations aim to improve the shopping experience by introducing online reservation services for duty-free products, allowing travelers to pre-order items based on their travel schedules [26].

Core Viewpoint - The opening of the first city duty-free store in Xi'an marks a significant milestone in filling the market gap in the northwest region, enhancing consumer experience and contributing to the city's consumption upgrade [1][12]. Group 1: Store Overview - The Xi'an city duty-free store, a collaboration between China Tourism Group's China Duty Free Group and Western Airport Group, spans 2,050 square meters and employs an innovative "duty-free + cultural tourism + consumption" model [3]. - The store operates on a dual-track model of "duty-free + taxable" to cater to both outbound travelers and local residents, offering a diverse range of products from luxury goods to local cultural items [3][5]. Group 2: Consumer Experience - The store emphasizes an immersive shopping experience, featuring dedicated areas for brand experiences, a whiskey bar, VIP services, and social interaction points, enhancing the overall consumer engagement [5][7]. - Local residents have shown interest in the store, with many visiting for leisure and social activities, indicating a successful integration of shopping and cultural experiences [7][9]. Group 3: Cultural Integration - The store incorporates elements of Xi'an's rich cultural heritage into its design and product offerings, creating a unique shopping environment that reflects the city's historical significance [9][10]. - Cultural products, such as those inspired by local icons like the Terracotta Warriors, have been well-received, suggesting a strong consumer interest in culturally themed merchandise [9][12]. Group 4: Economic Impact - The establishment of the duty-free store is pivotal for Xi'an's development as a distinctive international consumption center, stimulating high-end consumption and attracting both domestic and international tourists [10][12]. - The innovative model aligns with Xi'an's strategic focus on integrating cultural tourism and consumption, fostering a positive cycle of cultural engagement and economic growth [10][12].

格隆汇12月1日丨A股市场免税店板块午后震荡上扬，其中，中国中免涨超8%，凯撒旅业涨超4%，王府 井、广百股份、珠免集团跟涨。 ...

免税店板块午后震荡上扬，中国中免涨超8%，凯撒旅业涨超4%，王府井、广百股份、珠免集团跟涨。 ...

Core Points - The first city duty-free shop in Tianjin officially opened on November 28, located in the Nankai District, near the Gulou and Ancient Culture Street shopping areas [1][3] - The store features a shopping model that combines "duty-free + taxable," "imported + domestic," and "offline + online" options, offering a wide range of products including perfumes, cosmetics, watches, jewelry, sunglasses, alcoholic beverages, and travel electronics [1][3] - The duty-free products are primarily available to travelers holding exit-entry documents and who have purchased outbound flight tickets, specifically for those departing from Tianjin Binhai International Airport within 60 days [1] Business Strategy - The Tianjin city duty-free shop aims to provide diversified services to support the city's development as a globally influential international consumption center [3] - The initiative is expected to enhance the synergy of surrounding cultural and tourism resources, promoting the integration of "shopping + tourism" [3]