Trefis, US Research Institute, publishes investment Report today

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

Ctrip will release its first-quarter earnings in the 2014 fiscal year after the close of the eastern time of March 7 (Beijing time March 8). For Ctrip, the first quarter revenue was the lowest in four quarters. In the first quarter of the 2013 fiscal year, carrying Chengying to 187 million U.S. dollars, an increase of 29%. We expect the first quarter of this year, with Chengying receipts will rise more than 20%.

In the past period of time, Ctrip gross margin has been in a downward trend. The first quarter of fiscal year 2012 was 75.2%, 2013 was 73.8% in the first quarter and 2013 in the quarter of the year. We expect gross margins to fall to 72.5% per cent in the first quarter of this year.

Operating profit margins are also the same downward trend, with 2012 in the first quarter of 19.4%, 2013 for the first quarter of 13.8%, and 2013 for the quarter of the year.

We believe that in the short term, Ctrip gross and operating profit margins will continue to be in the downward trend. But Ctrip has ample cash flow to support large-scale marketing campaigns. In the long run, Ctrip's profitability will rebound.

Valuation: We continue to maintain the 46.67 U.S. dollar target share price unchanged.