Galaxy Securities: Seize the bottom layout opportunity of non-aviation ecological reconstruction in the airport sector.

According to the research report from China Galaxy Securities, on the level of the airport sector, the profits of listed airports are expected to continue to expand by 2025. The current pessimism in the airport sector regarding the renegotiation of duty-free agreements has been mostly reflected. The future recovery of international air traffic will still be a major focus for the airport sector. Additionally, the further recovery of the macro economy and domestic consumption will provide momentum for the improvement of commercial sector unit prices in 2025. Looking at annual non-aviation revenue, the expansion of international visa-free travel has catalyzed the growth of international passenger flow, leading to a overall recovery in the vitality of airport duty-free commercial formats. The revision of duty-free agreements at hub airports and the orderly promotion of tax-paying commercial properties, though the duty-free discount rate is likely to remain below pre-epidemic levels, with limited downward space under certain expectations, the accelerated entry of luxury brands in the future is expected to bring new value growth points. It is recommended to seize the opportunity to lay out the bottom of the non-aviation ecological reconstruction of the airport sector.