Jaffray maintain Ctrip Neutral rating target price 50 USD

Beijing time June 26 Evening News, the U.S. investment Bank Jaffray (PiperJaffray) issued an investment report today to maintain the "neutral" nasdaq:ctrp of Ctrip, while maintaining a 50 dollar target share price unchanged.

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

Based on our analysis of China Hotel and aviation data in the first two months of the second quarter, we believe that Ctrip will be able to achieve its second fiscal quarter guidance revenue forecast, that is, an increase of 35%. But it will not be much higher than expected, mainly because the growth of both hotels and airlines is slowing.

Air traffic slowed to a month-on-month pace: China's air traffic grew 3% in the second quarter, compared with 10% in the first quarter. We expect revenue to rise 38% year-on-year, down from 43% in the first quarter. In view of the sluggish air traffic, the hotel booking business is relatively stable (see below), we believe that Ctrip's second quarter revenue increase will be higher than the guidance expected (up 30% to 35%) median.

Hotel business is relatively stable: the second quarter of China's RevPAR (average price per house) rose 2% Year-on-year, with the first quarter flat. We expect the second quarter of Ctrip's revenue to grow 38% year-on-year.

Valuation: We continue to maintain the "neutral" rating of Ctrip, while maintaining a 50 dollar target share price unchanged. (Li Ming)