Galaxy Securities: Suggest seizing the opportunity to layout the bottom of the airport sector.

A research report from China Galaxy Securities stated that the current pessimism in the airport sector regarding the reduction in duty-free point rates due to renegotiating agreements has been mostly priced in. The future recovery of international passenger traffic will continue to be the main focus for the airport sector. Additionally, driven by a package of policies, the macroeconomy and domestic consumption are further recovering, providing momentum for an increase in unit prices for commercial sectors by 2025. The revision of duty-free agreements at hub airports and the progress of leasing taxable stores still need to be monitored. Although it is unlikely that duty-free point rates will return to pre-pandemic levels in the future, with clear expectations, there is limited downside potential and the accelerated entry of luxury brands is expected to bring new sources of value growth. It is recommended to seize the opportunity to lay out the bottom of the airport sector.