The initial rating given to the bull-watching stock stake

We are optimistic about the leading position of the online group tour market in China, and think that the promotion of outbound travel needs will bring good to the company. If the predictability of profitability improves, we will be more bullish on the company.

Share prices rose. The shares have risen more than 80% since the IPO. Passers-bull on May 9, the IPO price of 9 U.S. dollars. We expect the revenue from 2014 to 2016 to grow by 75% per cent a year, and as a result of the scale of the expansion of the US general accounting standards, the cattle will be in 2015 to achieve break-even. But we believe that this good has been reflected in the share price. According to our performance forecast, the current 2015 enterprise value and adjusted revenue ratio is 5 times times.

Simple online Leisure Travel service provider: We estimate that China's current 5 billion-dollar online leisure travel market will continue to grow at a rate of 30% to 40% a year. This is mainly due to the growth of tourism demand, and the penetration rate of online channels is currently only 8% to 9%. In terms of the total trading price, passers-bull is currently the leader in China's online group travel market, with a market share of more than 15% in 2013, up from 5% in 2011.

Outbound travel: Key growth drivers. China's outbound travel market is heating up, accounting for 38% of the total price of online leisure travel market in 2013. About 70% of passers-by ' bookings are from overseas markets, accounting for 61% and 93% of total orders for group tours and self-help tours.

Stable supply chain management. It has a diverse supplier base, and no supplier has more than 5% per cent of total bookings. The company has an advantageous cash-flow cycle (less than 40 days) because the user usually pays in advance.

Investment risk. Heavy investment led to sustained losses as competition intensified and revenues fluctuated as a result of uncontrolled events. Cooperation with Ctrip may mitigate the risk of a potential price war. (Lili)