Analysis institutions optimistic about Ctrip prospects: Occupy Overseas tourism market

Beijing time October 15 morning news, according to reports, Credit Suisse Group, ABR Investment Company (ABR Investments), Days Hao Capital (T.H) and several other analytical institutions are published research reports, optimistic about the future performance of Ctrip.

Ctrip (NASDAQ:CTRP) has a unique position to capture the rapid growth trend of China's overseas tourism market, according to a study released last month by Credit Suisse.

ABR investments, which published a study in Monday, endorsed this view of the Swiss credit group. The report is summarized as follows:

"Ctrip is the best place in China's overseas travel market. According to the latest data released by IResearch, Ctrip has a share of about 30% to 40% per cent in China's overseas tourism market, and the closest competitor to the rival cattle network accounts for around 15%. In the long run, we expect Ctrip's market share to rise further, as Ctrip has been buying Yongan tourism in the past 2011 years, 2012, with the world's leading online hotel booking service provider Booking.com to achieve cooperation and other events, and gradually to the overseas tourism market expansion activities laid a foundation. ”

The air travel market has been strong. According to data released by the China Civil Aviation Authority, the number of passengers travelling in August this year was 34.8 million, up 13.1% from a year earlier, and a growth rate of 11.3% over a year earlier. Among them, the number of passengers on international routes increased by 16.7% over a year earlier, to 2.7 million.

Days Hao Capital (T.H. Capital) Analysts believe that in the case of ticket prices remain stable, August Ctrip ticket sales increased by 30% to 35%, which is a good news for Ctrip's profit margin, for some of the main routes, Ctrip's preferential average ticket prices in the third quarter will increase 3.3%.

In the third quarter of 2013, the average daily cash discount for these major routes was likely to be 2.6% per cent of the average daily ticket prices, up from 1.7% in the second quarter. But in the third quarter, the number of flights covered by the cash discount measure could be 86%, less than 97% in the second quarter. ”

Days Hao Capital (T.H) maintained the "Hold" (Hold) Rating of Ctrip (NASDAQ:CTRP), and did not provide a target price. In contrast, ABR investment company is more optimistic about Ctrip prospects, the target price set to 75 U.S. dollars. Ctrip shares reported 56.2 dollars in the latest deal.