Where to go the stock rating remains in hold (Hold) unchanged

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

In the fourth quarter of 2013: strong growth performance;

-fourth-quarter results exceeded expectations;

Where are you going? Revenue rose 74% per cent year-on-year, compared with the average forecast for Deutsche Bank and Wall Street analysts by 6%, up 65% above the company's previous revenue Outlook range, mainly due to strong business growth (up 97% per cent). Where are you going? In the last quarter the Adjusted EBITDA (the net profit before interest, tax, depreciation and amortization) lost $47 million trillion, 24% less than Deutsche Bank analysts expected, but 19% more than the average Wall Street analyst expected.

Where are you going? The outlook for the first quarter of the 2014 fiscal year (an increase of 68% per cent in the expected range) was 10% and 20% higher than the average forecast for Deutsche Bank and Wall Street analysts respectively.

Where are we going? A major workforce expansion program (up to One times year-on-year) has been implemented to increase the market share of local services, so we expect the company to face a light profit margin pressure before it.

In order to better reflect the long-term value of where to go, we introduced the cash Flow discount method valuation method, and its target price increase by 58% to 35 U.S. dollars. Where do we go? The stock's "hold" rating remains unchanged.

-Enter local life services to build a seamless tourism experience

Management believes that a price war between online travel agencies (where 60% of the revenue comes from online travel agencies) can actually benefit from where to go, and that there is a higher demand for where to go when there is a popular price war between travel service providers.

In addition to being a leader in the hotel and flight search market, we expect to enter the local Life services market (the most relevant to leisure travellers). Where to go the goal is to build a more automated, user-friendly platform to attract local service partners, such as taxi applications, car rental service providers and hotel group purchase service providers (10% of the total number of business trips to the hotel).

Where to? plan to hire a large number of new employees and deploy them to provide on-site technical support and build customer relationships.

-Get support from ally Baidu

Online travel services are seen as key entry points for mobile internet, especially O2O (offline to offline) market opportunities. We believe that the nasdaq:bidu between Baidu and where to go (whether in terms of traffic or financial support from the 300 million dollar credit arrangement) is likely to help to withstand the test of the coming fierce market competition.

– The introduction of a cash flow discount method to raise the target price of 58% to 35 cents; maintain a "hold" rating

Where are we going? Revenue forecasts for fiscal year 2014 and 2015 are expected to rise by 4% per cent, with the adjusted EBITDA forecast to cut by 262% and 26% respectively to reflect a sharp increase in staff-related spending and the likely delay in achieving a profit.

We introduced the method of valuation of the cash Flow discount method (formerly the market surplus ratio valuation method) to reflect where the long-term value and cash flow status.

Where are we going? The new target price is set at 35 dollars, this means that the EBITDA (the ratio of corporate value to earnings before interest, tax, depreciation and amortization) is 50 times times the expected EBITDA in fiscal year 2015; earnings per share in fiscal year 2015 (not in accordance with US GAAP) , its P/E ratio is 67 times times, and its sales rate is 16 times times that of the 2014 fiscal year. We will go where the stock rating remains unchanged in "hold".

-Risk: competition, tourism market conditions, faster than expected operating leverage.