Goldman Sachs gives Ctrip neutral rating

Sina Science and Technology hearing Beijing time August 1 afternoon news, Goldman Sachs today released research report, awarded Ctrip (NASDAQ:CTRP) Stock "neutral" (Neutral) rating.

The following is a summary of the report:

Overview

Ctrip released a Better-than-expected second-quarter earnings announcement today, while raising revenue forecasts for the third quarter. According to earnings, Ctrip's net revenue grew 28% from a year earlier to 1.245 billion yuan, a 7% higher than we had expected, and a 7% per cent higher than the average analyst surveyed by Bloomberg.

With strong operating profit growth, Ctrip's non-GAAP earnings per share in the second quarter was 0.36 U.S. dollars, up 46% from a year earlier, 5% and 19% higher than our forecasts and analysts ' average forecasts. Ctrip estimated that the third quarter company revenue between 14.08 to 1.466 billion yuan, the year-on-year growth of 20%-25%, than we and analysts average expectations are higher than 2%.

Earnings analysis

In the second quarter, Ctrip booked revenue growth of 25%, which was mainly driven by a 44% increase in hotel bookings, and was offset by a 14% per cent year-on-year decline in income. This is also the third consecutive quarterly growth rate of Ctrip hotel bookings, the highest level in 2010 years. In the second quarter, mobile-end bookings accounted for more than 20% of the total number of Ctrip hotel bookings.

In the second quarter, Ctrip booked revenue growth of 29%, better than the past two quarters 18% and 27% year-on-year increase, which is mainly by the amount of ticket bookings year-on-year growth of 34% Drive, at the same time by each ticket income down 6% partial offset. In the second quarter of Ctrip ticket booking volume, mobile end accounted for up to 15%, and the beginning of this year only about 10%.

The second quarter, ctrip tourism business revenue growth of 40% year-on-year, the growth is mainly due to the growth of leisure tourism predetermined volume. Business Travel Management revenue growth of 34% year-on-year, reflecting the demand for travel activities growth.

In the second quarter, Ctrip's gross profit margin was 75%, flat against the same period last year. Non-GAAP operating profit margins of 24.7% per cent were 1.3% higher than our expectations, thanks largely to revenue growth and good results in cost control. We note that although the investment in product development has increased significantly, Ctrip's profit margin is still better than expected. Ctrip's second-quarter product development investment accounted for 22% of total revenue, creating the company's highest record.

Our channel survey results show that compared with the first quarter, Ctrip Hotel group purchase business is facing the pressure of competition is declining. We believe that investors will shift the focus from profit margin expectations to Ctrip's long-term potential in the mobile arena.

Valuation: We give Ctrip stock "neutral" (Neutral) rating. Sail)