According to a research report published by UBS, Haikou Customs data shows that duty-free sales in Hainan increased 129% year-on-year to 712 million yuan from January 1 to 3, and the number of duty-free shoppers increased 61% year-on-year. The bank estimates that the per capita duty-free spending amount is 8,527 yuan, an increase of 42.5% year-on-year; the number of products purchased also increased by 52.4% year-on-year. All data beat market expectations. The bank believes that sales growth is strong, mainly due to Hainan easing shopping policy restrictions for local residents and departing travelers at Hainan duty-free shops in October last year, boosting the number of shoppers. At the same time, per capita consumption increased significantly, mainly driven by boutique categories such as clothing, shoes, handbags, jewelry, etc., and mobile phone products. In addition, local governments also continue to provide duty-free shopping subsidies. The bank is more optimistic about China's free A shares and H shares. The target price is 99.59 yuan and HK$90.73, respectively, with a rating of “buy”. The bank is also optimistic about Shanghai Airport, as its new contract may push the company back to a high growth trajectory. Coupled with no major capital expenditure, the return on net assets is expected to continue to improve.

According to a research report published by UBS, Haikou Customs data shows that duty-free sales in Hainan increased 129% year-on-year to 712 million yuan from January 1 to 3, and the number of duty-free shoppers increased 61% year-on-year. The bank estimates that the per capita duty-free spending amount is 8,527 yuan, an increase of 42.5% year-on-year; the number of products purchased also increased by 52.4% year-on-year. All data beat market expectations. The bank believes that sales growth is strong, mainly due to Hainan easing shopping policy restrictions for local residents and departing travelers at Hainan duty-free shops in October last year, boosting the number of shoppers. At the same time, per capita consumption increased significantly, mainly driven by boutique categories such as clothing, shoes, handbags, jewelry, etc., and mobile phone products. In addition, local governments also continue to provide duty-free shopping subsidies. The bank is more optimistic about China's free A shares and H shares. The target price is 99.59 yuan and HK$90.73, respectively, with a rating of “buy”. The bank is also optimistic about Shanghai Airport, as its new contract may push the company back to a high growth trajectory. Coupled with no major capital expenditure, the return on net assets is expected to continue to improve.