Goldman Sachs released a research report indicating that after two years of recovery post-pandemic, China's travel demand has largely returned to normal. It is expected that both outbound and inbound travel will grow simultaneously next year, which will not only benefit online travel platforms (OTAs) but also promote the development of the hotel and aviation industries. The current forecast predicts that stock prices in China's tourism, leisure, and transportation sector will stabilize by the end of the first quarter of next year, with hotel and airlines company valuations expected to see a low rebound.
The firm is also bullish on Macau's gaming industry benefiting from policy support, with market sentiment likely to improve. It is anticipated that profit pressures in this industry will ease as market competition slows. Goldman Sachs currently sees less potential in airport, duty-free, and travel technology-related stocks, believing that the freight industry outlook will depend on changes in China-U.S. relations, while the port industry is expected to be more resilient than shipping companies.
Goldman Sachs has listed Ctrip (09961.HK) (TCOM.US), Tongcheng (00780.HK), H World Group (01179.HK) (HTHT.US), Silver Catering (0027.HK), Sands China (01928.HK), Air China (00753.HK), Cosco Ship Engy (01138.HK), Samsonite (01910.HK), and Atour Lifestyle Holdings (ATAT.US) as top picks, while downgrading Shanghai Jin Jiang International Hotels (600754.SH) and Meilan Airport (00357.HK) to 'Sell', and Melco Int'l Dev (00200.HK) to 'Neutral'.
