Maintain Ctrip stock buying rating

Deutsche Bank today issued an investment report to maintain the "buy" rating of Ctrip (NASDAQ:CTRP) while maintaining a 54 dollar target share price unchanged.

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

Discover vulnerabilities and fix them quickly: March 22 China's largest Third-party vulnerability report platform clouds exposed a report of Ctrip, said that a loophole in Ctrip will lead to a large number of users bank credit card information leakage, including cardholder name, ID number, card type, card number, CVV code, 6-bit card bin ( 6 digits used to verify payment information, etc., which may directly trigger problems such as theft of brushes. Thus, the incident sparked a crisis of confidence. Then, Ctrip quickly reacted: 1 in two hours to modify the vulnerability, 2 in the Sina Weibo and other social platforms release announcements, 3 to remind 93 bank card risk of users reset password, and give the RMB 500 yuan gift card as compensation. Ctrip also said that there has not been a user's economic loss report.

More detailed information: Ctrip management revealed: 1 The incident affected the business of Ctrip March 22, the transaction resumed normal on March 23. 2 Ctrip strictly comply with the payment industry standard (DSS), never stored the user's credit card CVV code. As for the unfinished transaction, Ctrip will delete the CVV code after 7 days. 3 The log file containing the credit card information has been encrypted, except for the discovery of nowhere, which has not been downloaded by anyone.

Limited impact: The event may have damaged the Ctrip brand. We believe that more users may be able to bind their credit cards (at least temporarily) or suspend payment online. More importantly, our survey data show that the incident may affect consumers ' concerns about the entire online payment and personal privacy security. As a result, the industry may face more regulation in the future. In addition, online/mobile payments on E-commerce platforms also require lessons learned. However, since there is no user-sensitive information leakage problem, we believe that the incident has limited impact on the user experience, so continue to look forward to the long-term prospects of Ctrip.

Valuation: We continue to maintain the "buy" rating of the Ctrip stock, while maintaining the 54 dollar target share price unchanged.