Core Viewpoint - The company has signed a contract with Beijing Capital Airport Commercial Co., Ltd. for a duty-free project at Beijing Capital International Airport, which will enhance its duty-free business network [1] Group 1: Contract Details - The project is located in the international departure and arrival areas of Terminal 2 at Beijing Capital International Airport, covering a total area of 3,566.33 square meters [1] - The contract's operational period is from February 11, 2026, to February 10, 2034 [1] Group 2: Financial Terms - The minimum operating fee for the contract is set at 113 million yuan [1] - The sales commission rate starts at 5% in the first year and increases by 1 percentage point each subsequent year, capping at 10% in the fifth year [1]

Core Viewpoint - Shanghai Airport has officially introduced a new duty-free agreement with China Duty Free Group and Dufry, which is expected to enhance the competitiveness of its duty-free business and stabilize non-aeronautical revenue growth starting from 2026 [1][2]. Group 1: New Duty-Free Agreement - The new duty-free agreement features a revenue model of "fixed rent + sales commission + 49% joint venture dividends," which is anticipated to motivate operators and improve the long-term competitiveness of the duty-free business [1][2]. - Dufry has obtained the duty-free operating rights for the international areas of Terminal 1 and Satellite Hall S1 at Pudong Airport, while China Duty Free Group has secured rights for Terminal 2 and Satellite Hall S2, as well as the corresponding rights at Hongqiao Airport [1]. Group 2: Financial Projections - The fixed fee for the new agreement is estimated to be approximately 760 million yuan for the year 2026, with potential fluctuations of ±20% based on international and regional passenger traffic changes compared to 2024 [2]. - The new commission rates for sales at Pudong and Hongqiao airports range from 8% to 24% and 8% to 22%, respectively, which is a decrease from the previous rates of 18% to 36% [2]. - Under the new model, the airport's total duty-free revenue is projected to reach approximately 1.5 billion yuan, an increase of 290 million yuan and 250 million yuan compared to 2024 and 2025, respectively [2]. Group 3: Investment and Operational Strategy - The company plans to invest up to 98 million yuan to establish two joint venture companies with Dufry and China Duty Free Group, holding a 49% stake in each [3]. - Based on a projected annual revenue of 7.5 billion yuan and a net profit margin of approximately 5%, the company could achieve an investment return of about 180 million yuan, significantly higher than the previous investment returns from its partnership with Japan Duty Free [3]. - The introduction of differentiated operators and a new incentive mechanism is expected to enhance operational quality and competitiveness in the duty-free sector, leading to sustainable and elastic growth in non-aeronautical revenue for the airport [3]. Group 4: Long-term Outlook - The ongoing recovery of international travel demand and the implementation of the new duty-free agreement are expected to significantly enhance the company's non-aeronautical revenue elasticity [4]. - The projected net profits for the company are estimated to be 2.1 billion yuan, 2.6 billion yuan, and 2.9 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding PE ratios of 39, 32, and 28 times [4]. - Shanghai Airport's strategic location as a key international hub is expected to unlock commercial potential and drive high-quality growth in non-aeronautical business, contributing to sustained profitability [4].

Group 1 - Wangfujing has been awarded the duty-free project at Beijing Capital International Airport, marking its first entry into a major international hub, with a guaranteed operating fee of 113 million yuan and a sales commission rate of 5% for the first year [1] - China Duty Free Group has also secured the duty-free operations at Shanghai airports, indicating a significant shift in the competitive landscape as major players like Dayang Duty Free exit the market [2][6] - The new contracts for Shanghai airports have expanded the operational areas significantly, with the total area for the Pudong Airport duty-free project increasing by approximately 1,181 square meters, and the Hongqiao Airport project area increasing from 2,087.55 square meters to 2,470.55 square meters [3][4] Group 2 - The revenue model for the Shanghai airport duty-free projects has changed to a combination of fixed rent and commission, with monthly fixed fees ranging from 2,827 to 3,141 yuan per square meter and commission rates between 8% and 24% [4][5] - Experts suggest that while the new revenue adjustments may not enhance the efficiency per square meter, they will allow for a broader range of brands to participate in airport duty-free operations, potentially increasing the overall scale of the business [5] - The current duty-free market in Beijing and Shanghai is evolving into a competitive landscape with multiple players, which is expected to foster healthy competition and improve consumer choice and service quality [6]

Core Viewpoint - China Duty Free Group, a wholly-owned subsidiary of China National Duty Free Group, has won the bid for the duty-free project at Beijing Capital International Airport, which is expected to enhance the company's market position and operational performance in the airport duty-free sector [1] Group 1: Bid Details - The company received a bid notification confirming it as the winning bidder for the duty-free project with a minimum operating fee of RMB 480 million for the first year [1] - The sales commission rate for the first year is set at 5% [1] - The contract duration is from the agreed start date until February 10, 2034, lasting no more than 8 years [1] Group 2: Strategic Implications - Winning this project will enhance the company's channel advantages at key domestic airports [1] - The project aims to meet the diverse shopping needs of inbound and outbound travelers, thereby improving the overall duty-free shopping experience [1] - Successful implementation of this project is expected to positively impact the company's future operational performance [1]

Core Viewpoint - Wangfujing Group has won the bid for the duty-free project at Beijing Capital International Airport, marking a significant expansion into a major international hub [1] Summary by Relevant Sections Bid Announcement - On December 26, Wangfujing received a bid notification from China National Tendering Co., Ltd., confirming its status as the winning bidder for the duty-free project at Terminal 2 of Beijing Capital International Airport [1] Financial Terms - The guaranteed operating fee for the first year is set at 113 million yuan, with a sales commission rate of 5% for the first year [1] - The operating period is from the contract start date until February 10, 2034, not exceeding 8 years [1] Strategic Implications - This project represents Wangfujing's first establishment in a super-large international hub airport, which is expected to enhance the scale and market share of its duty-free business [1] - The company stated that this bid win will not impact its performance in the fiscal year 2025 [1] Contractual Uncertainty - The project is still pending the signing of a formal contract, and the terms remain uncertain until the final contract is executed [1]

Core Viewpoint - China Duty Free Group, a wholly-owned subsidiary of China National Duty Free, has won the bid for the duty-free project at Beijing Capital International Airport, with a guaranteed operating fee of 480 million yuan for the first year and a sales commission rate of 5% for the first year [1] Group 1 - The contract duration is set from the start date specified in the agreement until February 10, 2034 [1] - Winning this project will enhance the company's channel advantages at core domestic airports, catering to the diverse shopping needs of inbound and outbound travelers [1] - The successful implementation of this project is expected to positively impact the company's future operating performance [1]

Core Viewpoint - China Duty Free Group, a wholly-owned subsidiary of China National Duty Free, has won the bid for the duty-free project at Beijing Capital International Airport, with a guaranteed operating fee of 480 million yuan for the first year and a sales commission rate of 5% for the first year [1] Group 1 - The project will enhance the company's channel advantages in key domestic airports [1] - It is expected to promote the high-quality development of airport duty-free business [1] - The operating period of the contract is from the agreed start date until February 10, 2034 [1] Group 2 - The contract terms still contain uncertainties, with specific details to be confirmed in the final signed contract [1]

Core Viewpoint - The company, China Duty Free Group, has won a bid for the duty-free project at Beijing Capital International Airport, which is expected to enhance its core airport channel advantages and promote the development of airport duty-free business [1] Summary by Sections Project Details - The company’s wholly-owned subsidiary, China Duty Free Group Co., Ltd., won the bid for the duty-free project at Terminal 3 of Beijing Capital International Airport [1] - The bid amount includes a guaranteed operating fee of 480.27 million yuan for the first year and a sales commission rate of 5% for the first year [1] - The operating period for the project is set to last until 2034 [1] Strategic Implications - Winning this bid is expected to enhance the company's competitive position in domestic core airport channels [1] - The project is anticipated to drive the growth of the airport duty-free business [1] Contractual Status - The company has not yet signed a formal contract, indicating that there are uncertainties regarding the terms [1]

Group 1 - Capital Airport (00694) saw a stock price increase of over 5%, currently trading at 2.8 HKD with a transaction volume of 21.84 million HKD [1] - A new round of duty-free bidding has been initiated at Shanghai Pudong, Hongqiao airports, and Beijing Capital Airport, with a significant change being the inclusion of foreign participants [1] - According to Guotai Junan Securities, the new duty-free contract model at Shanghai Airport (600009) shows a static calculation of duty-free revenue remaining stable under a median commission rate of 16% [1] Group 2 - Changjiang Securities noted that the Beijing Capital Airport is expected to announce the list of winning bidders soon, with bidding requirements similar to those at Shanghai Airport, allowing foreign bids [1] - It is anticipated that the results for Capital Airport will mirror those of Shanghai, with significant differences in international passenger and duty-free area between T2 and T3 sections [1] - The duty-free discount rates and rental levels at Capital Airport are likely to exceed those of Shanghai Airport, especially in the current competitive environment [1]

Summary of Key Points from Conference Call Records Industry Overview - **Market Outlook**: The Chinese market is expected to enter a transformation bull market, with a forecasted peak before the Spring Festival, driven by improved market liquidity due to reallocation and institutional fund inflows [1][3] - **Fiscal Policy**: Anticipated fiscal deficit rate for next year is around 4%, with a total scale of approximately 5.9 trillion RMB, including local government special bonds estimated at 4.6-4.8 trillion RMB [1][6] - **Monetary Policy**: The People's Bank of China is likely to cut interest rates early next year to stabilize the economy and support price recovery [1][7] Key Sectors and Investment Recommendations - **Technology and Growth Sectors**: Strong recommendations for emerging technology sectors, including internet, media, computing, and AI-related fields, as well as financial sectors like brokerage and insurance [1][10] - **Cyclical Industries**: Positive outlook on cyclical products such as non-ferrous metals, chemicals, steel, and building materials [1][11] - **Aviation Industry**: Recovery in demand for the aviation sector with rising ticket prices; expected continued growth in demand next year, with low fleet growth on the supply side [1][13] - **Shipping Industry**: The oil shipping sector is projected to reach a ten-year high in Q4, driven by unexpected demand growth from increased crude oil production [2][14] Specific Company Insights - **Aviation Companies**: Positive outlook on companies like Air China, Juneyao Airlines, and China Eastern Airlines due to expected demand growth and improved profitability [1][13] - **Shipping Companies**: Recommendations for COSCO Shipping Energy, China Merchants Energy Shipping, and China Ship Leasing based on favorable market conditions [2][14] - **Chemical Sector**: Companies with cost advantages and improving bottom-line performance, such as Hualu Hengsheng and Huafon Chemical, are recommended [2][19] Additional Insights - **Consumer Behavior**: The expansion of the "old-for-new" policy is expected to stimulate durable goods consumption, with an increase in the budget from 300 billion to 350 billion RMB [1][6] - **Market Dynamics**: Historical data suggests that early adjustments in December can lead to an earlier start for the spring market rally [1][8] - **Investment Strategy**: Focus on sectors with strong fundamentals and potential for valuation shifts, particularly in export, global manufacturing expansion, and AI [1][9] Conclusion - The overall sentiment is optimistic for the Chinese market in 2026, with a focus on technology and cyclical sectors as key investment opportunities. The anticipated policy changes and market dynamics are expected to support growth across various industries, particularly aviation and shipping.