Days Hao Capital to maintain Ctrip buy rating target price increase to 66 U.S. dollars

Beijing Time November 6 Evening news, investment company Days Hao Capital (t.h.capital) issued an investment report today, maintaining Ctrip (NASDAQ:CTRP) "Buy" rating, the target share price from 64 U.S. dollars to 66 dollars.

The following is a summary of the contents of the report:

Ctrip's third-quarter performance in fiscal year 2013 was strong, to a large extent beyond Wall Street's expectations, possibly thanks to its investment in leisure tourism, mobile tourism and offshore tourism. But revenue in the fourth quarter was expected to rise only 20% per 25%, below Wall Street's expected 26.6%. We believe that this expectation is somewhat conservative.

Revenue forecasts for the quarter are somewhat conservative: Ctrip expects fourth-quarter revenues to reach $215.95 million trillion to $224.95 million trillion, up 20% to 25% per cent year-on-year. The median of 220.45 million dollars is slightly below the Wall Street's expected $223.8 million trillion. In view of the following activities, we think that the expectation is somewhat conservative: 1 as part of the "11.11" promotional campaign in China's E-commerce market, Ctrip has also provided some promotional items through online and mobile platforms. 2 cooperation with where to go. Ctrip this August and where to reach a cooperation, cooperation is mainly for PC users, involving hotel reservations and air tickets booking. 3 The mobile business develops rapidly. Our data show that October Ctrip mobile application download volume increased by 13.5%.

Outbound tourism Business performance or promote the performance of the last quarter: since March this year, Ctrip outbound tourism business growth rapidly. We believe that this momentum of growth will continue. Compared with the domestic tourism business, the average selling price (ASP) of overseas travel business is higher.

Third-quarter results exceeded expectations: In the third quarter, with Cheng to 251.8 million U.S. dollars, more than 2.333 of the guiding expectations of the CAP, as well as Wall Street's expected 241.48 million dollars and our expected 238.9 million dollars. Based on US GAAP, each share of diluted earnings is 0.40 dollars, above Wall Street's projected $0.27 trillion and our expected $0.29 trillion.

Adjustment of performance expectations: We will be Ctrip quarter revenue from 224.6 million U.S. dollars to 227.4 million U.S. dollars, the diluted earnings per share forecast from 0.22 U.S. dollars to 0.24 dollars. For the entire 2013 fiscal year, we will increase our revenue forecast from $855.4 million to $872.2 million, and increase the projected earnings per share from $0.92 to $1.05. As for fiscal year 2014, we have projected revenue from USD 1.0713 billion to $1.11 billion, and the projected earnings per share is expected to increase from 1.17 US dollars to 1.23 dollars.

Valuation: We continue to maintain the "buy" rating of Ctrip, which will increase the target share price from 64 US dollars to 66 dollars.