Jingu Finance News | Soochow Securities issued a research report stating that Ctrip Group (09961) achieved net income of 15.9 billion yuan in Q3 24, a 16% year-on-year increase; adjusted EBITDA was 5.7 billion yuan, with an adjusted EBITDA profit margin of 36%, a 2 percentage point increase year-on-year; adjusted net income attributable to shareholders was 6 billion yuan, a 22% year-on-year growth, with both revenue and profit of the company performing better than Bloomberg's expectations.
The bank stated that domestic hotel ADR is beginning to stabilize, while outbound travel growth continues to lead the industry. 1) In Q3, domestic hotel ADR has begun to stabilize, with the year-on-year decline narrowing from double digits to mid-single digits, mainly influenced by the gradual slowdown in hotel supply growth. Entering Q4, the company's hotel occupancy rate has surpassed the same period in 2023, showing improvement compared to Q3 2024, with the bank expecting better year-on-year revenue growth for domestic hotels in Q4. 2) Outbound travel continues to maintain strong growth. The international flight market in Q3 has recovered to 80% of the levels in the same period of 2019, with the company's outbound hotel and flight bookings returning to 120% of the levels in the same period of 2019, continuing to lead the industry. With further international flight recovery, the company's outbound travel business is expected to continue growing rapidly.
The bank remains bullish on the company's overseas business growth. Considering the company's profits outperformed expectations, the bank has adjusted the company's adjusted net income for 2024-2026 from 16.9/18.9/20.9 billion yuan to 17.6/19.2/20.9 billion yuan, representing year-on-year growth of 34%/9%/9% respectively. The corresponding PE ratios based on adjusted income for the current stock price are 18/17/15 times, maintaining a 'buy' rating.
