On July 4, Guolonghui, Daiwa expressed that industry sentiment has improved due to the consumption tax reform. The bank believes that the focus of the reform is to reduce luxury and environmentally unfriendly consumption behavior, which indicates that the policy will cover more commodities. In addition, due to the widening price difference, the potential expansion of taxable items and the transfer of tax burden will increase the attractiveness of duty-free sales channels. However, it is difficult to quantify the impact on profits due to the lack of details on policy implementation. Overall, the bank believes that potential policy reforms are slightly bullish for underperforming duty-free industry stock prices. The bank pointed out that weak consumption is still a significant problem. From January to May this year, Hainan's duty-free sales fell by 30% year-on-year, and per capita consumption decreased by 22% to 5,630 yuan. Since the end of 2022, per capita spending has been on a downward trend. Despite the widening price gap, it is believed that policy reform will not reverse the weak sales of duty-free products in Hainan. However, due to the lower average consumption level, the potential for the recovery of duty-free sales at airports is greater. The bank believes that consumption tax reform will boost investment sentiment in the duty-free industry, thereby supporting Zhongmei Group in the short term, but still remains cautious about weak consumption. The bank prefers the Capital Airport and gives it a "buy" rating.