Where does Goldman go? Neutral rating target price reduced to $26

Beijing Time March 3 Evening News, Goldman Sachs today released a study to maintain where to go to the "neutral" Nasdaq:qunr, the target share price from 28 U.S. dollars to 26 dollars.

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

Where to? The 2013 financial year's quarterly results and the first quarter of fiscal year 2014 were expected to exceed industry expectations. In the quarter, revenue was 251 million yuan, an increase of 74%, compared with the average forecast of 6% by US and Bloomberg analysts. Based on non-US GAAP, each share of US depository shares lost $0.12, 1% lower than we expected, and 6% less than the average estimate by analysts surveyed by Bloomberg. Where are we going? The first quarter of fiscal year 2014 is expected to grow 65% to 70% year-on-year, compared with the average forecast of 9% to 11% by us and analysts surveyed by Bloomberg. Where are you going? The management said in a conference call that 2014 will continue to invest heavily in research and development, products and networks, which could lead to delayed earnings and slow margins growth.

Analysis：

Quarter four, where to go revenue rose 74% year-on-year, while the second and third fiscal quarter, respectively, 61% and 58%, which benefited mainly from: 1 strong air tickets and hotel booking volume growth, the former year-on-year growth of 108%, the latter rose 117%. 2 In addition to the network ticket booking, other aspects of the Revenue/query volume has increased.

In terms of airfare and hotel revenue, mobile platforms accounted for 18% and 26%, respectively. In terms of airfare and hotel bookings, the proportion of mobile platforms is 24% and 37%, respectively. In addition, where to go net parent company Baidu said that the next three years will be based on demand to go where more than 300 million U.S. dollars of credit.

Where to? The management said that the agreement with Baidu on "intimate search" was evolving as expected. Where to buy 10% of the non-mobile traffic to Baidu as a local application to promote mobile traffic growth, where to go now 30.5% of the flow from the mobile end, this part is almost natural flow, and Baidu relationship is not too big.

In terms of cost, where to go the main acceleration in the staff, sales and marketing and research and development areas of investment. We expect to continue to increase investment in the next few quarters to offset some of the higher revenues.

Where are we going? The projected earnings per share of 2014 and 2015 were lowered by 5% and 6% respectively, and the projected earnings for 2016 per share were expected to reach $1.10.

Valuation: Where do we go? Stock "neutral" rating, the target share price from 28 U.S. dollars to 26 dollars.