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海汽集团(603069):拟收购海旅免税 享离岛免税增长红利

Haiqi Group (603069): Proposed acquisition of Sea Travel duty-free to enjoy duty-free growth dividends on outlying islands

信達證券 ·  Jun 2, 2022 16:26  · Researches

Incident: The company plans to issue shares to Hainan Travel Investment and pay cash to purchase 100% of its shares duty-free. At the same time, it plans to raise supporting capital through a non-public offering of shares from no more than 35 specific eligible investors. The transaction does not constitute a restructuring of the listing.

Comment:

Sea travel duty-free lays out three major commercial sectors: outlying islands duty-free, cross-border e-commerce, and islanders' duty-free. The company opened the high-end travel retail complex Sea Travel Duty Free Mall in December '20, launched the operation and management of offline duty-free stores, retailing duty-free goods to tourists from outlying islands across the country, with a business area of 95,000 square meters, attracting more than 700 internationally renowned brands, including Tasaki, Marni, Fred, Etro, Hublot, Schaffrath, Gucci Makeup, Burberry Makeup, Christian Louboutin Makeup, SENSAI, EST, etc. More than 190 brands are entering the outlying islands duty-free market for the first time or exclusively.

The opening of the Sea Travel Duty Free City brought about an explosive increase in revenue. In '21, sea travel duty-free revenue reached 2.46 billion yuan. The explosive increase in revenue was mainly due to the opening of the Sea Travel Duty Free City at the end of December '20; revenue from January to March '22 reached 1.38 billion yuan. Although repeatedly affected by the epidemic, annual revenue is expected to grow rapidly.

The net profit of sea travel duty-free was reversed, and profitability increased. In '21, the net profit of Sea Travel Duty Free was -0.3 billion yuan to reduce losses. Losses were reversed from January to March '22, and Guimu's net profit reached 0.6 billion yuan, with a net interest rate of 4.3%.

The tax exemption policy on the outlying islands continues to be relaxed, and the pattern is much stronger. Relaxation of policies and the strength of new duty-free entities helped the outlying islands duty-free continue to grow. In 12-21, the outlying islands duty-free sales CAGR reached 40%, with the same increase of 11.3% in January-January '22. The outlying islands duty-free license was liberalized in 2020, and Haifa Control, China Travel Investment, and Shenzhen Exemption became the new duty-free subjects.

The deal is expected to boost the company's overall profitability. Affected by the epidemic, the company's revenue fell 39.7% year-on-year in 2020, and picked up slightly in '21, up 16.6% to 730 million yuan. Affected by the epidemic in 2020, the net profit of the mother was -100 million yuan, and the loss was reduced in '21, reaching -70 billion yuan. It is expected that after the transaction is completed, the Haiqi Group will upgrade from a traditional transportation company to a comprehensive travel group to create a new Hainan tourism business card. With the injection of high-quality assets, the profitability of the Haiqi Group will further enhance the investment proposal: issuing shares and paying cash to buy Sea Travel duty-free will catalyze the incident. After the opening of Sea Travel Duty Free City in December '20, Sea Travel Duty Free grew rapidly. With the help of differentiated brand strategies, it is expected that it will continue to benefit from the increase in the overall scale and market share of outlying islands duty-free. The specific transaction plan has not yet been announced, so it is recommended to pay active attention.

Risk factors: The specific transaction plan has not been announced and is uncertain; the risk of repeated epidemics; the risk of low consumption expectations due to the macroeconomic downturn.

The translation is provided by third-party software.


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