Morgan Stanley grants Cheng rating

Sina Science and technology news Beijing time August 1 afternoon, Morgan Stanley published a research report today, awarded Ctrip (NASDAQ:CTRP) Stock "overweight" (overweight) rating, industry prospects for "attractive" (attractive).

The following is a summary of the report:

Profit is better than market expectations: Ctrip released its second-quarter earnings today, with net revenue rising 28% per cent to 1.245 billion yuan, the upper limit of the company's expected range, and 6% to 7% higher than our expectations. In the second quarter, Ctrip's operating profit grew 17% per cent to 196 million yuan, a 33% higher than our expectations, and a share of $0.24 trillion after the dilution was 40%-50% higher than our average Wall Street analyst forecast. We expect Ctrip to have a 0.16-dollar earnings per share in the second quarter, while Wall Street analysts ' average forecast is 0.17 dollars.

Hotel booking Business performance is stable: The second quarter, Ctrip hotel booking sales growth of 25%, better than 15%-20% of the expected. Sales growth was mainly driven by a 44% increase in hotel bookings, with year-on-year growth of 36% to 41% in the past three quarters, offset by 14% per cent year-on-year decline in income. Notably, the year-on-year decline in income per night has narrowed from 20% in the third quarter of 2012 to 13% to 14% in the past three quarters.

Ticket booking sales growth was strong: in the second quarter, Ctrip's booking revenue rose 29% from a year earlier, better than the company's 15%-20% forecast, but also more than 19% of our expectations. In the second quarter, Ctrip's ticket bookings grew 34% from a year earlier, up from 27% in the first quarter, partly thanks to Ctrip's ticket-buying business, which was launched at the end of February. However, the second quarter of Ctrip per ticket income fell 6% year-on-year.

Profit margins improved: In the second quarter, the Cheng FEI GAAP operating profit margin was 25%, down from 28% in the same period last year, but above 23% in the first quarter. For seasonal reasons and better operating leverage, Ctrip's second-quarter profit margin grew, mainly because of higher gross margins, lower sales and marketing costs, and lower acquisition costs, but offset by rising product and research costs. It is noteworthy that in the second quarter, the mobile end of the total number of Ctrip in the volume accounted for 15%-20%.

Increased third-quarter revenue forecasts: Ctrip estimated that the third quarter of the company's revenue growth of 20%-25% year-on-year, and we expect Ctrip's third-quarter revenue growth of 22% Year-on-year, Wall Street analyst average expected to grow 21%.

Valuation: We give Ctrip stock "overweight" (overweight) rating, industry outlook for "attractive" (attractive). Sail)