Jinwu Financial News | OTA platform stocks were strong. Ctrip Group (09961) rose 4.68% to HK$330.8; Tongcheng Travel (00780) rose 4.2% to HK$13.88.
Citi published a report stating that the “Opinions on Promoting High-Quality Development of Service Consumption” issued by the State Council is of positive significance to the mainland's Internet and media industry. The opinion describes the direction of support for food and lodging, travel, entertainment, and digital consumption. The bank expects service consumption, including entertainment consumption, travel and local services such as music, movies, online games and e-sports, to remain resilient in a weak macro environment.
According to the China Galaxy Securities Research Report, summer travel data shows that demand in the summer travel market is still resilient. Combined, summer scenic spot performance accounts for a high share of annual performance+high operating leverage brings potential performance flexibility. It is recommended to focus on: Sante Ropeway, Western Tourism, Tianmu Lake, Jiuhua Travel, and Huangshan Tourism. As a traffic platform, OTA is still an absolute beneficiary of the growth of the travel market. The current competitive pattern of the industry is improving, and the outbound travel business is growing rapidly. The growth space is expected to expand in the future. I recommend Ctrip Group-S and Tongcheng Travel.
