"188bet Live Casino Service" will be renamed as "China China Duty Free"，Because duty-free licenses are so popular recently。

Under the epidemic，The 188bet Live Casino industry has been hit hard，But the surprising thing is，The duty-free industry, a small branch of the 188bet Live Casino industry, stands out during the epidemic，Capital rushes to enclose land，The share price of related concept stocks has reached a new high。

188bet Live Casino Service (601888) evening announcement on June 18th，To meet the company’s business development needs，Highlight the company’s main tax-free business features，Improve company brand recognition，Change the company's securities abbreviation to "China Free Trade"。

June 18，188bet Live Casino Service appears among the top ten most actively traded stocks on the Shanghai Stock Connect，Ranked fifth in Shanghai-Hong Kong Stock Connect trading volume。It’s worth noting，188bet Live Casino Service’s share price rose 47% in the past month.52%，Listed 23 times on Shanghai Stock Connect，Cumulative net sales 21.7.3 billion yuan；Increased by 58 in the past two months.77%，On the Shanghai Stock Connect list 35 times，Shanghai-Hong Kong Stock Connect cumulative net sales 25.5.4 billion yuan。

Monopolize domestic 188bet Live Casino industry

China Tourism Group, the parent company of 188bet Live Casino Service, was established in 1992，Industrial layout covers six major businesses，The travel service business includes the well-known Hong Kong China Travel Service、China Travel Service and China National Travel Service, etc.；Representative of travel retail business，It is China Duty Free Group。The listed company 188bet Live Casino Service is a secondary subsidiary of China Tourism Group。

Judging from the business composition of 188bet Live Casino National Travel Service since its listing，The proportion of corporate tax-free revenue is constantly expanding。At the beginning of listing in 2009，Tourism services achieved operating income of 32.4.9 billion yuan，And the product sales are only 14.3.6 billion yuan is less than half。But the revenue from the merchandise sales business is increasing year by year，Starting to accelerate growth in 2017，Commodity sales revenue in 2018 163.9.8 billion yuan，Exceeded 110 of travel services for the first time.5.9 billion yuan。Entering 2019，Major adjustments have been made to the business operations，Showing the trend of de-"tourism serviceization"，Tourism service revenue was only 5% that year.3.1 billion yuan，And product sales reached 236.9.6 billion yuan。

May 7 this year，188bet Live Casino Service Announcement，The company plans to use 20.6.5 billion yuan in cash to acquire 51% equity of Haidu Duty Free Company held by China Tourism Group。According to the announcement，Haifu Company’s operating income in 2019 is 32.2.7 billion yuan，Net profit attributable to parent company is 3.4.5 billion yuan。

After the acquisition of Haifui，188bet Live Casino Service will not only firmly occupy the two major outlying island duty-free markets in Sanya and Haikou，It can also increase its market share in the entire China duty-free market from 87% to 93% (estimated based on 2018 data)。

After focusing on tax-free business，The company’s performance growth in 2019 is strong。188bet Live Casino Service achieved operating income of 479 in 2019.6.6 billion yuan，YoY growth 2.04%，Achieve operating profit 71.0.9 billion yuan，31% year-on-year growth，Achieve net profit attributable to shareholders of listed companies 46.2.9 billion yuan，49 year-on-year increase.58%，Mainly benefiting from the continued growth of the domestic duty-free retail market。

Enjoy the dividends of Hainan 188bet Live Casino Trade Port

June 1，The State Council issued the "Overall Plan for the Construction of Hainan 188bet Live Casino Trade Port"，Gived Hainan a sincere policy gift package。

Sky Eye Check data display，There are currently four 188bet Live Casino shops in Hainan Island。January 19, 2020，Haikou Riyue Plaza Duty Free Shop and Qionghai Boao Duty Free Shop officially opened，Together with the existing Sanya Haitang Bay Duty Free City and Haikou Meilan Airport Duty Free Shop in Hainan, it has formed a new outlying island duty free pattern。

Look at the details，Haikou duty-free shop operating area 2.20,000 square meters，First phase opening area 1.30,000 square meters，The operating area of ​​Boao Duty Free Shop is 4,200 square meters。There is news，Currently，These two newly opened duty-free shops have introduced a total of nearly 200 international brands。All goods are purchased directly from the place of origin by 188bet Live Casino Duty Free (Group) Co., Ltd., which belongs to the 188bet Live Casino Travel Group together with Duty Free。

The new policy will have real benefits for 188bet Live Casino National Travel Service’s performance。On the one hand, the personal tax exemption and tax-free categories have increased，The revenue scale will be larger；On the other hand, corporate tax will be reduced by 10%，Previously 25%。

Capital rushes to seize land and return it

Overseas duty-free shop business is stagnant，Brings opportunities for consumption to return to 188bet Live Casino。How big is the reflow space？

South Korea’s duty-free industry sales reached US.3 billion in 2019，equivalent to about 148.7 188bet Live Casino，Because Chinese consumers contribute more than 70%，So the consumption scale may exceed 100 188bet Live Casino。

Chinese consumers prefer to buy luxury goods through duty-free channels。According to Bain Consulting Statistics，Chinese consumers spent more than 500 billion yuan on luxury goods abroad in 2019，The luxury goods market in mainland 188bet Live Casino is only about 30 billion euros，Approximately RMB 234.5 billion，Less than half。

Southwest Securities believes that the proportion of domestic tax-free channel consumption can reach 35% in the future，my country’s domestic duty-free market is expected to reach US 188bet Live Casino by 2028，The compound growth rate is 18%。

In this case，Capital is rushing to enclose land，There have been frequent capital moves in the industry recently。Gree Real Estate plans to apply to Zhuhai State-owned Assets Supervision and Administration Commission、Urban Construction Group issued shares non-publicly and paid cash to purchase 100% equity of Zhuhai Duty Free Group；Wangfujing’s controlling shareholder plans to apply for a tax-free license；Caesar 188bet Live Casino and Tuniu 188bet Live Casino Strategic Cooperation，Added duty-free shop business, etc.。

Another reason why capital is deploying，It is the scarcity of tax-free licenses。As understood，There are few companies with tax-free licenses in my country，And there have been no new licenses for many years。Currently my country has a total of 143 free of charge、Rishang Duty Free Line (acquired by 188bet Live Casino Duty Free Co., Ltd.)、Sea Duty Free (has been injected into 188bet Live Casino Duty Free)、Zhuwu、Deep Free、Cream service、Seven companies including 188bet Live Casino Overseas Chinese have duty-free industry licenses。

According to national policy regulations，Companies that do not have a duty-free license can invest in duty-free shops，As long as the duty-free shop is absolutely controlled by an enterprise with the qualification to operate duty-free goods (the shareholding ratio is greater than 50%)。Therefore，In the general trend of 188bet Live Casino’s overseas consumption returning，It’s not just the tax-free merchants with tax-free licenses who will benefit，There are also related companies that participate in tax-free business。

It is precisely because of this，Recently, tax-free related concept stocks have been on the rise。Gree Real Estate announced the acquisition of Zhudu and closed five consecutive daily limits；188bet Live Casino Service’s share price hits record high，Join the ranks of 100-yuan stocks。

*Source of this article：Securities Times e-newsletter, author:Chen Lixiang, Zhang Qianyao, original title: "The duty-free license is too hot! 188bet Live Casino Service changes its name to "China China Duty Free"》.