China International Travel Service (601888) 2019 Interim Report Review: Interim Report’s Beautiful Personnel Settled

China International Travel Service (601888) 2019 Interim Report Review: Interim Report’s Beautiful Personnel Settled

Interim report deducted non-performance growth of 31%, in line with expectations for 2019H1, the company achieved revenue of 243.

$ 4.4 billion / +15.

46%; return to mother’s performance 32.

79 ppm / +70.

87%; deduct 30%.

86%, consistent with the performance report; EPS1.

68 yuan.

Q2 company income / performance / deduction of non-performance each -12.

94% / + 28.

21% / + 20.

85%, mainly due to the spin-off of the China National Tourism Administration and the impact of the 18H1 base difference.

  The growth of tax-exempt income was beautiful. Many factors affected the deduction of non-main businesses to maintain rapid growth in 2019H1, and the company’s tax-free revenue was 229.

08 ppm / +53.

26%, of which Shanghai and Shanghai revenue 77.

3.4 billion / + 97.

29% (consolidated in March 18, a comparable increase of about 30%), attributed to the mother’s performance3.

21 ppm / +49.

44%, the net interest rate under the new T2 deduction point decreased by 1.

3pct; capital T2 + T3 tax-free income 43.

6.5 billion / + 25.

54%, performance increased by about 60% +; Sanya store revenue 53.

29 ppm / + 28.

72%, performance 8.

3.3 billion / + 5.

63%, due to the significant increase in rents and property management fees from the internal settlement started in 18H2; Hong Kong Airport’s tax-free income12.

9.6 billion / + 36.

13% (not all opened in 18H1), it is estimated to be slightly loss.

The addition of overseas wholesale exemptions increased traditional tax exempt income by 50% +.

19H1, the company accrued 0 for asset impairment losses.

9.9 billion (18H1 only 0.

0.6 billion), deferred income from shopping points2.

00 trillion (18H1 is 0.

8.9 billion) and other factors affecting performance growth.

19H1 gross margin increased by 9.

86pct, the impact of the China National Tourism Administration’s statement, the cost rate increased by 6 during the period.

96pct is mainly due to increased rents.

  In the new personnel changes, the mid-line expects that the vast space of tax-free shops in the city will upgrade consumption. The high-cost characteristics of tax-free channels will have alternative consumption potential when the macro economy weakens, and policy dividends will continue under the background of consumption powerfreed.

At the end of last year, the tax exemption policy of the outlying islands was further expanded to supplement Haikou and Boao’s in-store stores (company custody) to help the island’s tax-free growth.This year the company has opened duty-free shops in Beijing, Qingdao, Dalian, Xiamen, and Shanghai. The policy of Chinese people leaving the city is expected to continue to strengthen, and it is expected to start a new growth in the future.

In addition, the company’s new personnel changes are settled.

Former Chairman of China Immunity Peng Hui / CEO of China Immunity Chen Guoqiang were promoted to directors / general managers of listed companies. 北京桑拿洗浴保健 First, due to the expiry of the previous management team in early 2017, and second, due to the complex management needs after replacing China National Tourism Organization,With the strengthening of the performance evaluation of state-owned enterprises, the new team is expected to continue to promote the company’s global rankings.

  Risk warning: systemic risk, exchange rate depreciation risk, policy risk, new projects may be lower than expected.

  Investment suggestion: The new term of personnel is settled, the policy is expected to be strengthened, and the “buy” is raised to increase EPS 2 in 19-21.



15 yuan (Air Force 2.



11 yuan, without considering the national store policy, assuming Haiwai will be consolidated next year), PE40 / 36/30 times.

Although the estimates are not low, the company 武汉桑拿 is a domestic tax-exempt hegemonist, with profit growth supported, policy positives expected to be strengthened, the latest personnel settled, and “buy” maintained.