Incident: The company won the bid for the exit duty-free programs at Harbin Taiping International Airport and Mudanjiang Hailang International Airport. The details are as follows:

1) Harbin Taiping International Airport Departure Duty Free Shop

Area: 323.84 m2

Rent: The first year's guaranteed rent is $2.49 million, and the sales withdrawal ratio is 19%

Operating period: 10 years

2) Mudanjiang Hailang International Airport Departure Duty Free Shop

Area: 36.73 m2

Rent situation: Guaranteed rent for the first year is $0.23 million

Operating period: 10 years

Although these two projects are small in scale and are not expected to have a significant impact on the company's business performance, they are the first time that the company has launched a port duty-free shop business. If the contract is formally signed and implemented normally in the future, it will further enrich the company's duty-free business type and broaden the duty-free business channels. Furthermore, in recent years, policies to support duty-free shops in the city have been introduced frequently, and tax exemptions in the city are gaining momentum. It is recommended to pay attention to the progress of implementation of subsequent policies and the company's related layout.

Profit forecast and investment advice: The company is expected to achieve operating income of 12.713/13.73/14.829 billion yuan in 2024-2026, with a year-on-year increase of 4%/8%/8%, respectively, and net profit to mother of 0.867/1.005/1.167 billion yuan, up 22%/16% year-on-year. The PE corresponding to the current stock price is 18/16/13X, respectively, maintaining the “recommended” rating.

Risk warning: the risk of macroeconomic fluctuations, the risk of offline consumption falling short of expectations, and industry competition increasing the risk.