According to a research report published by Goldman Sachs, air ticket prices in China rose 14% to 17% year on year from May to June this year, falling back to roughly flat to a 3% increase from July to August, and domestic air passenger traffic also rebounded from July to August, reflecting the flexibility of aviation demand on prices. It is expected that due to fluctuating air ticket prices and poor weather in some regions, travel demand fluctuations will intensify during the summer vacation this year. It is believed that demand during the 11th National Day Golden Week may have a long-term effect like the recent holiday season. The bank is optimistic about Ctrip Group. The current price valuation is low. Investors are advised to take the opportunity to absorb it and give it a “buy” rating. The target price is HK$536. It is optimistic that inbound travel and international business expansion will bring continuous growth momentum. In terms of hotels, Goldman Sachs favors Huazhu Group and Yaduo, with a “buy” rating. It believes that the two have high visibility of network expansion and profitability improvements. The target prices are HK$51 and $52, respectively. The bank maintains a “neutral” rating for China Free, with a target price of HK$62. It focuses on the sales performance of Hainan Duty Free during the peak season from October to March next year; the rating for Samsonite is “buy”. Revenue is expected to reach an inflection point between the end of this year and the beginning of next year, with a target price of HK$18.4. In terms of aviation stocks, Goldman Sachs gave all three major airline stocks a “buy” rating. The target prices for China Eastern Airlines, Air China and China Southern Airlines were HK$4.4, HK$6.4, and HK$4.6 respectively. The performance is expected to continue to be dragged down by the sharp rise in oil prices. The bank is more optimistic about Spring Airlines, which is less sensitive to oil prices.

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