Galaxy Securities: Extreme weather weighs on the scenic spot sector during peak season; companies with endogenous growth show notable resilience.

Galaxy Securities research report states that in Q3 2026, the performance of the scenic spot sector came under broad pressure, as the summer peak consumption season was hit by frequent extreme weather, hampering the recovery of resident travel. Scenic spots have a high proportion of rigid costs, further amplifying profit pressure; traditional mountain-type natural resource scenic spots saw both revenue and net profit attributable to parent decline year-on-year, with the decline continuing to widen compared with the second quarter. Three Gorges Tourism achieved counter-trend growth through endogenous expansion; although its traditional sightseeing cruise business was dragged down by the industry environment, new inter-provincial cruise projects continued to ramp up, driving rapid revenue and profit growth. At the current stage, it is recommended to prioritize companies with independent growth space and independent alpha.