Gelonghui November 14th | Debon Securities research reports pointed out that China Tourism Group Duty Free Corporation (601888.SH) Q3 revenue was 11.756 billion, -21.52% year-on-year, net income attributable to mother was 0.636 billion, -52.53% year-on-year, non-net profit attributable to mother was 0.635 billion, -52.49% year-on-year, with weaker profit capacity compared to H1. Looking ahead to Q4, during the National Day period, there were 0.765 billion domestic trips nationwide, a 5.9% year-on-year growth in comparable terms, a 10.2% growth compared to the same period in 2019. Domestic tourists spent a total of 700.817 billion yuan on trips, a 6.3% year-on-year growth in comparable terms, a 7.9% growth compared to the same period in 2019. The number of travelers rebounded faster than during the Mid-Autumn Festival, but consumption recovery is still slower than traffic recovery. Considering the observation of travel data from important holidays this year, passenger flow recovery has consistently outpaced sales recovery, with purchasing power slightly under pressure. The bank is bullish on the gradual recovery of consumer power driving further improvement in the duty-free market performance. Hainan's passenger flow has recovered well, consumer power is gradually being restored, and the resumption of outbound travel bodes well for the recovery of port tax-free projects. At the same time, the progress of new complexes and in-city duty-free policies is expected to contribute incremental growth. It is expected that the revenue for 2024-2026 will be 58.9/66/71.9 billion, with adjusted net income attributable to mother at 5.388/6.424/7.35 billion respectively, corresponding to PEs of 28.48X/23.88X/20.87X, maintaining a "buy" rating.