Deutsche Bank maintains Ctrip's target price of 74 USD

Beijing Time July 18 Evening News, Deutsche Bank today issued an investment report to maintain the NASDAQ:CTRP "buy" rating, while maintaining a 74 dollar target share price unchanged.

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

Recently reported that Ctrip may have bought two cruise ships, expanding cruise business. This may lead to a positive marketing mix transfer. Before, Ctrip has announced that this year will provide 15 exclusive cruise lines, far more than competitors. It is expected that the global cruise market is up to $37 billion trillion. Based on the number of passengers, about 80% per cent of the shares are occupied by Carniva, Royal Caribbean and Norwegian cruise companies. We believe that Ctrip will continue to maintain OTA (online travel agent) mode, because operating a cruise business needs "front-end loading", which requires a lot of money to build their own fleet or through partners to operate.

China cruise market demand is strong: We believe that for China's online travel providers, luxury cruise routes only a significant opportunity: 1 Shanghai official data showed that last year, the cruise ship started in Shanghai 336 Times, an increase of 107%. And so far this year, has increased 87%. 2 potential customers are mainly middle and high-end users. 3) is affected by the location of the cruise business, access to the market will further strengthen the service providers in the port city business performance, such as Shanghai and Tianjin. 4 as most cruise destinations are overseas markets, the service providers will gain a share in China's high-end outbound market.

The formation of entry barriers: China's main competitors of cruise business, including Ctrip, with the city network, mother Donkey and offline travel agent. We believe that by virtue of the first advantage, Ctrip will establish a competitive advantage, especially pricing capacity.

Valuation: We continue to maintain the "buy" rating of the Ctrip stock, while maintaining the 74 dollar target share price unchanged. (Li Ming)