On July 29, Guolin Hui reported that a research report from Bank of China International pointed out that due to unfavorable weather and weak consumer confidence, China's tourism industry in the second quarter of this year may perform flat, and the third quarter may continue the weakness of the previous quarter, with leisure tourism weaker than previous market forecasts. Therefore, the bank expects that there may be a risk of lower-than-expected industry profitability in the second quarter, making the guidance for the second half of the year more cautious. However, the bank believes that if the market reacts negatively after the earnings are announced in August, the capital market measures introduced by these companies may provide downside protection for their stock prices. Bank of China International reiterated that OTA platform is the most bullish, followed by hotels, and finally tourism retail. The bank's preferred industry choice is Ctrip, and it is expected that its outbound tourism and overseas platform business expansion can offset the weakness of domestic tourism. The rating for H-shares and US shares is "buy", and the target price for H-shares is HK$497. In addition, the bank lowered its profit forecast for China Tourism Group Duty Free Corporation in the fiscal years 2024 to 2026 by 21% to 23%, and lowered its target price for H-shares from HK$108 to HK$68. The annual EBITDA forecast for H World Group in the fiscal years 2024 to 2026 was reduced by 3% to 4%, and the target price for H-shares was lowered from HK$35.9 to HK$34.7, believing that based on the sustained deterioration of mainland hotel performance, H World Group may provide a more cautious full-year guidance. The bank maintained a "buy" rating on H-shares of China Tourism Group Duty Free Corporation and H World Group.