As for the tax-free craze of listed companies, relevant securities analysts also pointed out that it is not only the gold content of the license plate, but also the actual operation of the duty-free shop. Moreover, judging from the current situation, it is uncertain whether the license can be finally obtained, and the relevant listed companies also point out the uncertainty.
Three more tax-free concepts
On the evening of July 23, the concept of duty-free products was added to the new army, and three more companies announced that they were applying for the business qualification of duty-free products.
Youa (002277) said on the evening of July 23 that the company received a letter from Hunan friendship Apollo Holdings Co., Ltd., the controlling shareholder, on July 23, 2020 about applying for the business qualification of duty-free products. In order to further expand the groups retail business and enhance the competitiveness of the industry, youa holdings recently submitted an application for duty-free product business qualification in Hunan market to the relevant government departments. If the relevant qualification is obtained, it will be handed over to the company for implementation, so as to facilitate the combination of tax-free business and tax-free business.
In addition, bu Bugao (002251) also said that recently, the company submitted a request to the relevant departments of Hunan Province and Xiangtan Municipal Government on supporting the company to apply for the business qualification of duty-free commodities; Zhongbai group (000759) also announced that in order to optimize the companys business structure, further expand business scope and enhance the companys competitiveness, the company submitted a declaration on supporting the company to the relevant government departments on July 23 Application for business qualification of duty-free products.
However, the above companies also said that there was significant uncertainty in the application for tax-free licenses. Step by step, Gao pointed out that at present, the relevant work is still in the initial stage of application, and the company has not conducted business negotiations or signed any contracts or agreements with any customers or partners on the operation of duty-free products. The business qualification of duty-free goods belongs to the national franchise qualification, and there is great uncertainty whether the company can obtain the qualification ultimately. The companys main business is still the retail business of taxable goods, and there will be no significant changes in the short term.
From the perspective of application companies, these companies applying for tax-free license are all related regional retail department stores. Among them, youa shares is a department store retail enterprise in Hunan Province; Zhongbai group is a large chain enterprise with commercial retail as its main business in Wuhan; and Bubugao is the first listed company of private supermarket chain enterprises in China.
License fever of listed companies
Stimulated by this, the concept of A-share tax-free has become one of the most concerned sectors in the near future, and the trading limit will rise as soon as the tax exemption is involved. Related listed companies have also joined the tax-free license application camp. Based on the scarcity of license plates and scenarios, as well as the stimulation of expanding domestic demand, some securities analysts regard the concept of tax exemption as a wave of the times.
On the evening of July 22, Nanning Department store just announced that it would join the tax-free license application camp, and the relevant departments had submitted an application for instructions on the business qualification of duty-free products. That night, investors have already issued three price limits in Nanning Department Store bar, but there are also voices that say, all are rubbing, the concept of tax-free has flooded all over the street.
E company reporter found that in the near end of the capital market did set off a wave of listed companies applying for tax-free license. In addition to the above-mentioned companies, since July, there are five companies that have announced that they are applying for tax-free licenses, namely, Bailian shares on July 6, Lingnan holdings on July 15, Hubei Wushang a on July 19, and Eurasian Group on July 20.
The reporter found that as a regional retail department store, only from the distribution area of these companies, there has been a partial overlap phenomenon. Among them, there are two businesses focusing on business in Hubei: Hubei Wushang A and Zhongbai group. With more and more companies entering into the tax-free field, the voice of questioning the gold content of tax-free license plate is constantly heard in the market. Before that, a securities analyst told e company reporter, previously, there were more tax-free licenses in South Korea, but the leader is still the leader. It is not only the gold content of the license plate, but also the actual operation of duty-free shops. Can these companies jointly make the tax-free cake bigger rather than blow it up.
The leader has more advantages
The tax-free fever of listed companies is also related to the hot concept of tax exemption in the A-share market in recent years. Wangfujing, the leading stock, has risen from the highest price of 12 yuan at the end of April to a high of 79 yuan. Although it has dropped slightly recently, the closing price on July 23 is still as high as 65.50 yuan (up 6.16%), and the stock price has risen four times. In addition, Chinas tax-free leader, Chinas central immune system, also rose again on July 23, and has risen nearly 240% since April 1.
In China, the tax-free market belongs to franchising, and the current tax-free market is a typical oligopoly. Huachuang Securities pointed out that tax-free license is a business privilege, and there is no excess income in areas with high degree of marketization. Tax free profit requires three elements: scarcity of license plate / scene, high tax rate / luxury domestic pricing discrimination, and strong domestic demand. Only when the three elements are complete, can the profit guarantee be guaranteed.
According to public information, at present, there are less than ten leading duty-free operators in China: China duty-free products (Group) Co., Ltd. (China exemption group), Japan duty-free line (Group) Co., Ltd. (Japan duty-free line), Shenzhen state-owned duty-free goods (Group) Co., Ltd. (Shenzhen free group), Zhuhai duty-free Enterprise Group Co., Ltd. (Zhuhai free group), Hainan duty-free products Ltd (Marine immune company) and China overseas personnel Service Corporation (China export service) and China Travel Service Co., Ltd., as well as Wangfujing, which has just obtained the tax-free license application.
Minsheng securities, in the medium-term strategy just released, directly indicated that it firmly grasped the main line of tax-free policy in the new year. Minsheng Securities pointed out that with the implementation of a new round of tax-free policy rules for outlying islands, the catalytic logic of tax-free policy in the first half of 2020 has been realized. We expect that there will still be relevant heavy-duty policies for the tax-free industry in the second half of 2020. The domestic tax-free policy of Chinese people will be the top priority. It is expected that the policy will exceed the expected space in terms of shopping quota and shopping methods.
Minsheng Securities said that with the growth of Chinas tax-free industry, the boundary has been opened. Under the new outlying island tax-free policy and the soon to be implemented domestic tax-free policy, we expect the domestic tax-free market sales scale should be above 150 billion, more than three times higher than that in 2019. It is also pointed out that with the increase of license plates, we must also face the influence brought by the change of competition pattern. However, both Minsheng securities and Huachuang securities have said that the leader has more advantages in this wave of tax exemption. Minsheng Securities said that no matter the leading company China immune, or Wangfujing, an old duty-free operator, Gree real estate (Zhuhai duty-free group) and Bailian shares, the potential qualification winner, will benefit from China immunity. Huachuang Securities pointed out that China immunity has high-quality market, outstanding purchasing ability, and Wangfujings main business has great synergy, and Gree real estate (Zhuhai exemption) has Imagine space. Source of this article: Yang Bin, editor in charge of E Company_ NF4368
Minsheng Securities said that with the growth of Chinas tax-free industry, the boundary has been opened. Under the new outlying island tax-free policy and the soon to be implemented domestic tax-free policy, we expect the domestic tax-free market sales scale should be above 150 billion, more than three times higher than that in 2019. It is also pointed out that with the increase of license plates, we must also face the influence brought by the change of competition pattern.
However, both Minsheng securities and Huachuang securities have said that the leader has more advantages in this wave of tax exemption. Minsheng Securities said that no matter the leading company China immune, or Wangfujing, an old duty-free operator, Gree real estate (Zhuhai duty-free group) and Bailian shares, the potential qualification winner, will benefit from China immunity. Huachuang Securities pointed out that China immunity has high-quality market, outstanding purchasing ability, and Wangfujings main business has great synergy, and Gree real estate (Zhuhai exemption) has Imagine space.