Maintain Ctrip's overweight rating

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

Ctrip announced April 28 that it would invest 200 million dollars in cash with the same deal. After the transaction is completed, Ctrip will become the second largest shareholder (after the same city management). In addition, Ctrip announced the investment of 15 million U.S. dollars to the passers-by. We are positive about the two transactions, so we continue to maintain the "overweight" rating of Ctrip.

The same city background: The same journey is one of China's largest online travel agencies, the main sales attractions tickets and self-help leisure travel services, but also provides hotel and air ticket booking services. The city has a 23% per cent share of the local tourism market in 2013, and Ctrip is 7.5%, according to the data. Tencent invested in the same city in 2012 and 2014. 9th this month, the same city and the Arts Dragon signed a strategic cooperation agreement.

Analysis：

1) We believe that the two investments further highlights the Ctrip's determination to promote the rapid formation of China's online tourism market ecosystem, that is, Ctrip as the core. The formation of the ecosystem may accelerate the development of China's online tourism market.

2 We anticipate that the investment in the same city will bring synergy in the short term.

3) The adjustment of the future points of interest of Ctrip faces both challenges and business opportunities.

4 The investment of the pedestrian cattle is a long-term strategic investment, and the synergy effect is not obvious in the short term.

Valuation: We continue to maintain the "overweight" rating of Ctrip.