Golden Age Financial News | Minsheng Securities issued a research report, Ctrip Group (09961) released unaudited financial performance for Q2 2024, with a net income of 12.8 billion yuan for Q2 2024, a year-on-year increase of 14%; Non-GAAP net income was 5 billion yuan, a year-on-year increase of 45%, with a Non-GAAP profit margin of 39%, a year-on-year increase of 8.5 percentage points; adjusted EBITDA was 4.4 billion yuan, with an adjusted EBITDA profit margin of 35%, a year-on-year increase of 2.0 percentage points.
The bank pointed out that, in terms of segmented businesses, the lodging revenue was 5.1 billion yuan, a year-on-year increase of 20% and a quarter-on-quarter increase of 14%; the transportation revenue was 4.9 billion yuan, a year-on-year increase of 1% and a quarter-on-quarter decrease of 3%; the vacation revenue was 1 billion yuan, a year-on-year increase of 42% and a quarter-on-quarter increase of 16%; the business travel revenue was 0.633 billion yuan, a year-on-year increase of 8% and a quarter-on-quarter increase of 24%. On one hand, the growth rate of transportation revenue was affected by the pressure on air ticket prices, and on the other hand, the company proactively adjusted its business structure and reduced the sales intensity of insurance and other products, resulting in a year-on-year decrease in monetization rate. With more platform resources allocated to hotel services, the cross-selling rate has increased, driving strong performance in the lodging business.
The bank believes that: 1) Although the pressure on the domestic consumer market has an impact on the performance of the tourism industry, Ctrip has a strong brand advantage and its competitive edge is expected to be highlighted; 2) Ctrip's outbound performance continues to outperform the industry, and it is expected to further drive performance growth in the second half of the year; 3) The continuous optimization of inbound tourism policies and the rapid growth of Trip.com are expected to drive the expansion of international business.
The bank is optimistic about the company's development for 2024 and expects the company's Non-GAAP net income to be 16.505 billion yuan, 19.194 billion yuan, and 21.858 billion yuan for the years 2024-2026, respectively. The corresponding Non-GAAP EPS are 24.15 yuan, 28.08 yuan, and 31.98 yuan, with adjusted PE ratios of 14 times, 12 times, and 10 times based on the closing price on August 27th. The bank maintains a 'buy' rating on the stock.