Intelligent Finance APP learned that Zheshang Securities released a research report stating that considering the comprehensive layout of software and hardware facilities and internal growth-driven factors, it is expected that Xiamen Xiangyu (600057.SH) will have a net profit attributable to the parent company of 1.211 billion yuan, 1.435 billion yuan, and 1.683 billion yuan from 2020 to 2022, with year-on-year increases of 9.50%, 18.46%, and 17.35%, respectively, corresponding to EPS of 0.56 yuan, 0.66 yuan, and 0.78 yuan. From a growth perspective, the company's compound annual growth rate of net profit attributable to the parent company from 2020 to 2022 is 17.90%, and the PEG of the corresponding 2021E PE is 0.52, which is significantly lower than the valuation relative to the growth. Zheshang Securities believes that the reasonable valuation of the company is around 15 times PE, the reasonable market cap of the 2021 net profit attributable to the parent company is about 21.5 billion yuan, and the relative price still has about 58% room for growth. The first coverage is given a "buy" rating.$CTG DUTY-FREE (01880.HK)$Rising by over 15%, as of the deadline, it increased by 15.73%, to HK$68.05, with a transaction value of 0.533 billion HK dollars.

From a news perspective, according to a notice issued by the Ministry of Finance and five other departments on improving the policy of downtown duty-free shops, it will take effect from October 1. According to the arrangements in the notice, 8 cities including Guangzhou, Chengdu, Shenzhen, Tianjin, etc., will each establish 1 downtown duty-free shop. China International Capital Corporation's previous research reports mentioned that the proposal of establishing 8 new downtown duty-free shops in the notice will greatly promote the development of the downtown duty-free industry. Currently, China Tourism Group Duty Free Corporation and CDFG (49% owned by China Tourism Group Duty Free Corporation) leadingly benefit from the layout of downtown stores.

Furthermore, the high-profile meeting proposed to launch additional policies to make efforts to achieve the annual economic growth target and boost consumer demand. China Merchants Securities pointed out that considering the strong season of September and October and the National Day holiday, singles' day sales promotions, and other stimuli, the expected reduction in existing house mortgage rates is likely to bring positive stimulus to consumer demand by alleviating repayment pressure, releasing disposable income, and further stimulating consumption demand growth.

Editor/ping