CHINA TRAVEL HK (00308) has been recognized as a leading integrated tourism investment and operation platform in China, backed by the central enterprise China Travel Group to develop multiple benchmark tourism projects. Based in the Greater Bay Area with diversified business operations, the company is positioned for future growth through expansion into new domestic and international tourism projects.

Financial projections indicate the company's net profit attributable to shareholders will reach HK$2.7/4.2/6.0 billion for 2025-2027, corresponding to PE ratios of 32/21/15 times respectively. Considering CHINA TRAVEL HK's potential to continue expanding quality tourism assets, the company commands a certain valuation premium, warranting an initial "Overweight" rating.

In the first half of 2025, domestic tourist trips and total tourist spending increased by 20.6% and 15.2% year-over-year respectively, with expectations for continued steady growth in tourist numbers despite the high base. Frequent service consumption policies are expected to help unleash the potential of cultural and tourism consumption.

The company has established a nationwide scenic area layout, achieving integrated investment and operation. Revenue breakdown by business segments for 2024 shows theme parks generating HK$596 million, natural and cultural attractions HK$1.241 billion, leisure and vacation HK$458 million, and scenic area supporting services HK$50 million.