The agency says the Bulls can make a profit by scaling up

The following are the main points of the report:

Based on the strong market share and rapid expansion of the fast-growing leisure tourism market in China, Huaxing Securities advises long-term fund investors to invest in bull stock; based on stronger year-on-year growth in the second half of 2014, the agency advised hedge funds to absorb the bull stock.

Price-driven factors: huaxing Securities believes that brand promotion brought about by the increase in traffic growth, the potential collaboration between the cattle and Ctrip can enhance product selection and enhance bargaining power, profit margin recovery, the new line of the tail-delivery channel in the short term to the turnover of the contribution may be lower, but can bring a winning effect, which is an important price driver.

Suggested buying factor: based on the long-term normalization of the valuation coefficient is attractive, the institutional DCF valuation model derived 21 dollar target price implied 2014 and 2015 corporate value/Net sales of 15 and 8 times times. In addition, from the industry perspective, China's tourism industry fundamentals, especially the outbound travel market is strong; from the perspective of the enterprise itself, the strong cash inflow of passers-by, the ability to gain market share from the line and offline, the accelerated flow growth after the promotion of the brand, and the profit margin expansion of the scale promotion are considered by the institutions.

Risk：

Slow economic growth, persistent negative international events, unpredictable events will affect the growth of trading volumes, the irrational competition caused by new entrants will negatively affect profit margins, and the level of customer service cannot keep up with its own turnover growth and so on.

Investment advice:

Buy rating, target price 21 USD per share.