Zhongxin Travel (002707): Hands-free layout and duty-free business
Zhongxin and China Exemption Group recently reached a strategic cooperation agreement, which will take advantage of mutual independence in internal and external tourism retail cooperation. There is synergy between tax exemption and outbound tourism, which will help the company improve its industrial chain business layout.
Hand in hand tax-free business and increase holdings.
Considering the impact of the new crown epidemic on the performance of 2020-2021, the EPS for 2019/20/21 is reduced to 0.
17 yuan (-0.
10 / -0.
16 / -0.
However, considering the company’s layout of tax-exempt business, improving the business chain business layout, and providing incremental performance in the future, and the company has obvious advantages as a leader in scale and brand, it is given a 40xPE evaluation in 2021, which is higher than the industry average 25xPE evaluation, and the target price is raised to 6.
Event: Zhongxin Tourism signed a cooperation framework agreement with China Exemption. The two parties will rely on their respective advantages in the fields of tax exemption and outbound tourism, comprehensively integrate resources, and promote the international development strategy of tourism + shopping.
There are many synergy points between tax exemption and outbound tourism, and China Exemption Zhongxin has obvious advantages.
①Tax exemption is an important moment in the outbound tourism industry chain. The clusters are highly overlapping, and there are five intersections of city departure, port departure, overseas, port entry, and return tax exemption; ②China exemption is in brand, scale, operationThe channel has 厦门夜网 obvious advantages and strong price competitiveness under strong premium capabilities.
Zhongxin, as the leader of the outbound tourism industry, has mastered the combined outbound passenger flow, these continuous high-quality potential tax-free consumer groups.
The cooperation will mainly land in the form of opening a store, and it is expected that the territory and external layout will be outside.
① It is expected that the cooperation model will be based on opening stores, and the proportion of equity will be based on the cooperation model of Caesars and Zhongde Service (the Caesars holds 20% -50% of the shares in the stores); ② Overseas stores will operate with China Exemption, ZhongxinProvide funding, drainage, and site selection for cooperation; ③ Due to licensing factors, internal department stores have a variety of store establishments, including multiple cooperation methods such as the establishment of ordinary tourist retail stores; ④ Considering that opening a store requires a large amount of capital investment, and the travel agency itselfCash needs to meet daily operations, and subsequent financing needs are expected.
Risk warning: cooperation progress is less than expected; risk of outbreak of overseas target epidemic.