Morgan Stanley bullish on China's leading position in the online tour market

Absrtact: June 19--Morgan Stanley today released a study of the TOUR, the Nasdaq Stock Exchange code: a report. The report said Morgan Stanley is bullish on the leading position of the company in China's online group tour market and believes that outbound travel is a close

The June 19 News, Morgan Stanley today released a study on the TOUR (NASDAQ stock Trading Code: a) report. The report said Morgan Stanley is bullish on the leading position of the company in the Chinese online tour market and believes that outbound travel is a key growth driver for the firm.

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

We are bullish on the leading position of the company in China's online tour market, and believe that it will be able to take advantage of the growing demand for outbound travel. If the profit margin of the bull is improved, we will be more bullish on its prospects.

--Share price rises:

Since the IPO on May 9, the share price of the bull has risen by more than 80% per cent of its $9 IPO. We expect the annual composite growth rate of 75% per cent between 2014 and 2016, and estimates that the earnings of the Bulls (not in accordance with the US General Accounting standards) will be balanced in 2015 years. But according to our expectation, the market current pricing has taken this factor into account. According to our expected 2015 adjusted sales of cattle, ev/sales (the ratio of enterprise value to sales) is 5 times times.

--Pure online Leisure travel service provider:

We predict that China's online leisure tourism market, which totals $5 billion trillion, will continue to grow at an annual rate of 30% to 40%, much higher than the current 8% to 9%, mainly because the market will benefit from growing tourism demand and online penetration. In terms of total turnover, the company occupies a leading position in the Chinese online tour market, which accounted for more than 15% of the market in 2013 and a 5% increase compared with 2011.

-Outbound travel is a key growth driver:

In China's tourism market, the popularity of outbound travel is surging. Over the past 2013 years, outbound travel has accounted for 38% of the total commodity value of China's online leisure tourism market. About 70% of the gross turnover of cattle in transit comes from outbound travel, which in 2013 contributed 61% of the Tour's gross turnover and 93% of the self-service travel volume.

--The supply chain management performance is steady:

The company has a diverse supplier base, and no supplier accounts for more than 5% of its gross trading volume. In addition, the bull has a good cash cycle (-40 days) because its customers usually pay upfront.

--Investment risk:

Increased competition, fluctuations in sales as a result of uncontrollable events, and greater investment could lead to longer losses. At the same time, the cooperation between the CTRP and Ctrip (NASDAQ stock Trading Code: a) may help mitigate the risk of potential price competition. Snow）