Ctrip's target price is set at 46.67 dollars.

Ctrip recently announced that the 200 million dollar strategic investment with the city network. Prior to this, Ctrip announced a 600 million dollar share repurchase plan.

By the end of December 2013, Ctrip's cash volume was about 1.2 billion dollars. This includes short-term investments and restricted cash, amounting to about 1.9 billion dollars.

Strengthening the domestic market share should be the first task:

Although Ctrip in the domestic market share has more than 45%, but further strengthen its market position should be Ctrip's first task. Mergers and acquisitions may be the best way for Ctrip to use its cash. These investment transactions will help Ctrip to further evaluate its long-term development trend before acquiring the invested enterprises.

Before, Ctrip has done a number of similar mergers and acquisitions. 2013 10th, Ctrip acquired a 20% stake in the Esay go company. In December 2013, Ctrip acquired a 19.6% per cent stake in the car and acquired a stake of Keystone 4.4%.

We believe that Ctrip's strategic investment has achieved diversified business. Ctrip is expected to continue to acquire or invest in the enterprise that complements its own business in the future. We believe that these investments will receive higher returns in the future.

Valuation: We set the Ctrip target price at $46.67.