Zhongjin: There is untapped potential in indoor skiing, recommended to focus on leading domestic ski operators.

CICC released a research report, estimating that the current narrow domestic skiing market volume is about 37 billion yuan; referring to the popularity rate and skiing frequency in the United States, it may reach 300 billion yuan in the medium to long term. Indoor skiing facilities can meet the demand for off-season skiing at a lower cost, and indoor ski resorts are accelerators for the industry's medium- to long-term development with higher investment potential. High-quality ski resorts are irreplaceable resources, and skiing as an optional service consumption, brand premium and customer loyalty determine long-term growth and profitability, in line with the law of the Matthew Effect. It is recommended to pay attention to the development potential of excellent operators led by Sunac Culture and Tourism Group in China. CICC's main points are as follows: The skiing market has expanded rapidly in recent years, but the popularity rate is far lower than overseas, mainly due to the lack of high-quality ski resort resources. Document [2024] No. 49 of the State Council predicts that China's ice and snow economy will reach 1.5 trillion yuan by 2030, with the core being ice and snow sports, of which skiing has higher potential for popularity. From 2014 to 2024, the number of skiing participants in China doubled to 26.05 million times, making it a major growth point in the global market but with a participation rate of only 0.9%, lower than overseas countries such as Western Europe (5%-30%). Internationally, the skiing participation rate is positively correlated with the level of economic development. Moreover, China lacks high-quality ice and snow resources, mainly located in high latitudes, far from economically developed regions. Coupled with the fact that commercial operations are still in an initial stage, there is a broad space for increasing the popularity of skiing in China. The skiing market is expected to reach a hundred billion yuan scale in the medium to long term, and indoor skiing facilities have higher development potential. According to CICC's estimation, the current narrow domestic skiing market volume is about 37 billion yuan; referring to the popularity rate and skiing frequency in the United States, it may reach 300 billion yuan in the medium to long term. Indoor skiing facilities can meet the demand for off-season skiing at a lower cost. Indoor ski resorts are accelerators for the industry's medium- to long-term development with higher investment potential. High-quality indoor ski resorts need to consider advantage...