According to the CICC research report, according to China's public service platform for tendering and bidding, Shanghai Airport opened tenders for inbound and outbound duty-free shops at Pudong and Hongqiao International Airport on November 17. The tender opening time was December 9. China Free of Charge is still the most competitive bidder. If 100% shareholder bidding is used, it is beneficial to increase net profit to mother. It is believed that scale, supply chain, operation, channels, and talent are the core competitiveness of Zhongfu. The financial score of Zhongfu did not rank first in the T3 and Daxing Airport Premium tenders in 2018-19, but the final bid was won due to high technical scores, and the increase in market share in the Hainan competition over the past few years are all examples. It is expected that the cooperative and win-win relationship between China Free and the brand and the airport will continue. The growth rate of tax exemptions on the outlying islands is accelerating, and attention is being paid to the incremental potential brought about by the new policy. The current A/H share price corresponds to 31x/25x 26e P/E. Maintaining the “outperforming industry” rating and considering the incremental potential brought about by the new policy, the A/H target price was raised by 13%/18% to 93/HK$86, corresponding to 35x/29x 26e P/E and 15%/16% upward space.

According to the CICC research report, according to China's public service platform for tendering and bidding, Shanghai Airport opened tenders for inbound and outbound duty-free shops at Pudong and Hongqiao International Airport on November 17. The tender opening time was December 9. China Free of Charge is still the most competitive bidder. If 100% shareholder bidding is used, it is beneficial to increase net profit to mother. It is believed that scale, supply chain, operation, channels, and talent are the core competitiveness of Zhongfu. The financial score of Zhongfu did not rank first in the T3 and Daxing Airport Premium tenders in 2018-19, but the final bid was won due to high technical scores, and the increase in market share in the Hainan competition over the past few years are all examples. It is expected that the cooperative and win-win relationship between China Free and the brand and the airport will continue. The growth rate of tax exemptions on the outlying islands is accelerating, and attention is being paid to the incremental potential brought about by the new policy. The current A/H share price corresponds to 31x/25x 26e P/E. Maintaining the “outperforming industry” rating and considering the incremental potential brought about by the new policy, the A/H target price was raised by 13%/18% to 93/HK$86, corresponding to 35x/29x 26e P/E and 15%/16% upward space.