Goldman Sachs publishes investment report today to maintain a neutral rating for Ctrip

Sina Science and technology news Beijing time of November 6, Goldman Sachs released its investment report today, maintaining the NASDAQ:CTRP "neutral" rating, the target share price from 45 U.S. dollars to 49 dollars.

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

Third quarter results:

Ctrip's third-quarter results exceeded Wall Street's expectations. Net revenue was 1.541 billion yuan, up 31% from a year earlier, 3% higher than we expected, and 5% higher than the average forecast for analysts surveyed by Bloomberg. Ctrip estimated that the fourth quarter revenue will reach RMB 1.322 billion to 1.377 billion yuan, the median value is lower than our expectations of 3%, compared with the average forecast of 1% lower than analysts. Ctrip's expectation may be somewhat conservative.

Analysis：

Mobile and outbound tourism drive performance growth. In the third quarter, the mobile booking accounted for 30% of the total of Ctrip hotel reservations, accounting for 15% of the booking volume. Daily turnover of more than 100 million yuan. Mobile subscriptions have become a supplement to PC subscriptions.

In the past few quarters, the share of call centres has fallen to 40%, compared with 50% a year ago.

Overseas tourism business growth is strong, hotel reservation volume increased 300%. The number of hotels covered has also expanded to 240,000, equivalent to more than 3 times times the domestic Hotel network.

The company's management says it will invest heavily in traffic acquisition and product marketing (especially mobile brands) over the next few quarters. Therefore, we expect Ctrip's operating profit margin for the quarter to be 24.9%, down 1.6% in the chain.

We will carry ctrip for the fiscal year 2013 per share of diluted earnings expected to be lowered by 1%, the 2015 fiscal year diluted earnings expected to increase by 7% to reflect the strong growth of scheduled business, as well as higher marketing costs.

We continue to maintain the "neutral" rating of Ctrip, which will increase the target share price from 45 US dollars to 49 dollars.