Guide to this report: The performance of the three-quarter report is in line with expectations. The company focuses on internal tourism circulation and the Hainan market, and actively cooperates with the Sanya Municipal Government and others concerned, and is expected to share the dividends of the duty-free market. Key investment points: The results of the three-quarter report are in line with expectations, and holdings have been increased. Considering that the impact of the epidemic on outbound travel is difficult to recover in the short term, the 2020 EPS was lowered to -0.34 (-0.07) yuan, and the 2021/22 EPS was maintained at 0.04/0.19 yuan. The company focused on the internal circulation of tourism. The duty-free layout is expected to accelerate, giving a valuation higher than the industry average of 87xPE in 2022 and maintaining the target price of 16.55 yuan. Performance summary: In the first three quarters of 2020, the company achieved revenue of 1,187 million/ -74.86%, net profit loss of 193 million yuan, net profit loss of 193 million yuan, and loss of non-net profit of 203 million yuan. The company's outbound travel business stagnated due to the impact of the pandemic, but the company's cash flow performance was good. ① Quarterly revenue for the third quarter was 298 million/ -84.91%, net profit loss of 75.24 million, non-net profit loss of 76.81 million yuan; ② Q1-Q3 received cash for products sold in a single quarter, 430 million dollars in Q3, 430 million, and net cash flow from operating activities totaled 10.48 million/ -101.10%, of which Q3 had a net inflow of 138 million yuan in the single quarter. Focusing on the internal tourism cycle and the Hainan market, the duty-free business is progressing steadily. ① Under the impact of the epidemic, the company adjusted its strategic operating direction throughout the year: creating high-quality domestic tours; exploring new tourism scenarios and strengthening private traffic operations; entering offline lifestyle experience stores; ② The company reached strategic cooperation with the Sanya Municipal Government, Hainan Rubber, and many other Hainan enterprises, which will combine its resource capacity endowment advantages to provide many tourism products and services, including boutique tours, island health, vacation tours, etc.; ③ The company participated in the domestic duty-free shopping project in Beijing, and set up Tongsheng Shijia Duty Free Group in Haikou to introduce Wenyuan equity investment funds, and is expected to participate in the Hainan Island free of charge in the future In the tax business. Risk warning: The overseas epidemic continues, outbound travel cannot recover in the medium to long term, and there is a risk of repeated domestic outbreaks.