Core Insights - The recent surge in interest from major internet companies in user reviews and ratings is driven by the need to find new growth avenues in the service consumption era, as traditional e-commerce growth has plateaued [1][2] - Platforms like JD.com and Gaode are expanding their roles beyond traditional functions to become influential in consumer decision-making, particularly in the restaurant and entertainment sectors [1] - The competition for consumer attention is intensifying, with platforms aiming to create high-frequency touchpoints through review content [1] Industry Dynamics - The service consumption market remains robust, with significant demand for experiences such as dining and entertainment, which are often subjectively evaluated [1] - The introduction of new review platforms is seen as a way for businesses to connect directly with consumers, especially in a high marketing cost environment [1] Consumer Behavior - Consumers are generally receptive to multiple review channels, appreciating the opportunity to discover new places and potential discounts [2] - There is a growing skepticism towards "water reviews," with consumers preferring authentic experiences over generic positive reviews [2] Trust and Credibility - Trust is fundamental to the review ecosystem, with users relying on genuine feedback to guide their choices, while platforms must maintain impartiality to build credibility [2][3] - The challenge lies in balancing the dual role of platforms as both arbiters of authenticity and profit-driven entities, which can lead to conflicts of interest [2] Future Considerations - New entrants in the review space must focus on rebuilding trust mechanisms rather than merely replicating existing functionalities [3] - The long-term success of review platforms hinges on their ability to foster genuine interactions and maintain consumer trust, as losing credibility can undermine even the most attractive data and interfaces [3]

Core Viewpoint - Ctrip Group reported strong financial performance in Q3 2025, with a significant increase in revenue and net profit, primarily driven by substantial other income from the sale of a stake in MakeMyTrip [2][5]. Financial Performance - In the first three quarters of 2025, Ctrip's revenue reached 471 billion, a year-on-year increase of 15.9%, and net profit was 291 billion, up 93.6% [2]. - The Q3 net profit was 199 billion, surpassing Kweichow Moutai's net profit of 192 billion by 3.6% [2]. - Ctrip's revenue in 2023 doubled to 446 billion, with a revenue index of 125, and is projected to reach 534 billion in 2024 [5]. - From 2019 to Q3 2025, Ctrip's revenue had a compound annual growth rate of 9.5% [7]. Revenue Breakdown - Accommodation bookings and transportation ticketing are the two main revenue streams, contributing 80% of total income [8]. - In 2019, accommodation revenue was 140 billion and transportation revenue was 135 billion, together accounting for 77% of total revenue [9]. - In 2023, accommodation and transportation revenue indices reached 128 and 132, respectively, indicating a strong recovery post-pandemic [10]. Cost Management - Ctrip has significantly improved its cost management, reducing total expense ratio by 12 percentage points since 2019 [14]. - In 2023, the gross profit margin increased to 81.8%, while the total expense ratio decreased to 56.3% compared to 2019 [16]. - By Q3 2025, Ctrip achieved a gross profit of 381 billion with a gross profit margin of 81.1% [16]. Competitive Landscape - The travel market is expected to see over 6 billion domestic trips and a total spending of 6.5 trillion by 2025, indicating a competitive environment with numerous players [22]. - Ctrip faces competition from various OTA platforms, traditional travel agencies, and new entrants like JD.com and Meituan [23][24]. - Ctrip's unique advantages include a vast hotel resource network, with over 1.4 million global hotel partnerships and nearly 100% coverage of high-star hotels in China [28]. Strategic Advantages - Ctrip has established a strong market position by acquiring competitors and enhancing its service offerings [25]. - The company operates over 7,000 offline stores across more than 300 cities, providing a significant advantage in customer trust and service [31]. - Ctrip's call center, with approximately 12,000 seats, offers 24/7 support, enhancing customer satisfaction and loyalty [32].

Core Insights - The report titled "2024-2025 Cross-Border Tourism Consumption Trend Research Report" highlights the steady growth of the global tourism market, with a focus on China's inbound and outbound tourism consumption characteristics, revealing new trends and development opportunities for high-quality industry growth [1][9]. Global Tourism Overview - The global tourism market is experiencing robust growth, with a projected 11% year-on-year increase in travel volume in the first half of 2025 and a 3.9% increase in tourism spending in 2024. Experience-based travel is becoming the core driving force, significantly influenced by sports events and entertainment performances [1][18]. - Popular destinations are showing regional differentiation, with France, Spain, and the United States leading in international tourist arrivals in 2024. China ranks first globally in inbound tourist arrivals, receiving approximately 132 million visitors [1][21]. Outbound Tourism Trends - China's outbound tourism is on the rise, with steady growth in both travel volume and spending. Short-haul and niche destinations are leading in growth rates, driven by optimized visa policies, the recovery of international routes, and cultural activities [2][10]. - Different demographic groups exhibit distinct travel preferences: Generation Z favors cost-effective and spontaneous trips, families prioritize safety and educational value, while seniors prefer long, in-depth travel experiences [2][10][66]. Inbound Tourism Trends - China's inbound tourism is experiencing rapid growth, driven by policy benefits such as visa facilitation. In the first half of 2025, the number of visa-exempt foreign visitors significantly increased, with South Korea, Malaysia, and Japan being the main source countries [2][10]. - The demand for "event tourism" and "cultural experience tourism" is rising, with major events like the Chengdu World Games and Harbin Asian Winter Games leading to a surge in inbound travel orders [2][10]. Emerging Trends in the Industry - Three core trends are emerging in the tourism industry: 1. "Emotional" travel is becoming a key driver, with a rise in therapeutic tourism and customized products catering to diverse psychological needs [3][34]. 2. "Local culture" is inspiring travel, shifting tourists from mere sightseeing to immersive experiences, with collaborations between destinations and gaming or film IPs gaining popularity [3][34]. 3. AI is transforming the industry, assisting in trip planning and product recommendations, thereby enhancing service efficiency [3][34]. Development Recommendations - The report suggests optimizing outbound tourism services, developing diverse products, and creating an AI-based digital platform to enhance payment security and convenience. For inbound tourism, it recommends improving Chinese-friendly ecosystems, deepening policy benefits, and enriching cultural experience products [3][10].

Core Viewpoint - Ctrip stands out as the only internet company in the top ten of the net profit margin rankings in the Fortune China 500 list, showcasing its exceptional profitability with an 80% gross margin and a 32% net profit margin, significantly outperforming competitors like Tencent and Pinduoduo [2][5]. Group 1: Ctrip's Market Position and Performance - Ctrip's net profit surged sixfold to 10 billion in 2022, and by the third quarter of this year, it achieved a quarterly net profit of 19.9 billion, indicating a strong recovery and growth trajectory [2][9]. - Despite fierce competition from major players like JD and Alibaba, Ctrip's market position remains stable, with a projected 56% market share in GMV for 2024 [9][11]. - Ctrip's success is attributed to its early market entry and aggressive acquisition strategy, which included significant investments in traditional booking centers and other OTA platforms [11][12]. Group 2: Competitive Landscape - Competitors like Meituan and JD have attempted to disrupt Ctrip's dominance with aggressive pricing strategies, such as zero commission offers, but have struggled to gain significant traction [12][13]. - The hotel industry is experiencing a resurgence, with a notable increase in new hotel openings, yet Ctrip continues to benefit from its established market presence and operational efficiencies [19][20]. - The OTA market's dual-sided scale effect favors larger platforms like Ctrip, making it increasingly difficult for new entrants to compete effectively [11][21]. Group 3: Business Model and Strategy - Ctrip's business model focuses on "air ticket traffic, hotel monetization," allowing it to leverage low-margin air ticket sales to drive higher-margin hotel bookings [16][19]. - The company has built a robust customer service infrastructure, with over 16,000 employees in its travel call center, enhancing its ability to serve customers effectively [21][24]. - Ctrip's international operations have also seen significant growth, with outbound hotel and flight bookings surpassing pre-pandemic levels by 40% [24][27]. Group 4: Industry Dynamics - The hotel industry is facing a paradox where both OTAs and hotels rely on each other for business, creating a delicate balance in their relationship [15][19]. - The rise in hotel chain consolidation has shifted some power dynamics, but Ctrip's established relationships and market share continue to provide it with a competitive edge [19][20]. - The ongoing evolution of the OTA model, with discussions around the value created for the industry, highlights the complexities of the market and the challenges faced by both OTAs and traditional hotel operators [20][21].

Group 1 - Ctrip reported a revenue growth of 16% year-on-year and a net profit increase of 194.01% in Q3 2025, achieving a net profit of 199 billion yuan, surpassing Kweichow Moutai's net profit of 192.2 billion yuan [3][4] - The significant profit increase was partly due to the disposal of certain assets, including a portion of its stake in MakeMyTrip, which contributed 170.32 billion yuan in "other income" [3][4] - Ctrip's gross margin reached 81.55%, significantly higher than other major internet companies like Tencent and NetEase, which reported gross margins of 56.41% and 64.10% respectively [5][7] Group 2 - The hotel booking segment contributed 80 billion yuan in revenue, accounting for 43.72% of total revenue, marking the highest proportion in three years [9] - Ctrip's commission rates for hotels are high, with gold and special hotels facing commissions of 12% and 15% respectively, and additional fees for enhanced visibility [10][12] - Ctrip's market share in the domestic OTA market is projected to be 56% in 2024, significantly ahead of competitors like Tongcheng, Meituan, and Fliggy [12] Group 3 - Ctrip enjoys a strong competitive advantage with no significant direct competitors in the domestic OTA market, allowing it to capitalize on its market leader status [16][17] - The company has strategically invested in and partnered with potential competitors, effectively consolidating the market and reducing price competition [13][14] - Ctrip's focus on service quality has built strong customer loyalty, making it difficult for competitors to attract users away from its platform [16][17]

Summary of Key Points from the Conference Call Industry Overview - The focus for 2026 in Asian markets will shift from AI-driven stocks to growth opportunities beyond AI, dividends, and previously overlooked stories in Asia [2][12][14] - Key themes include structural stories in energy self-sufficiency, new technology, financial deepening, and the growth of formal retail in ASEAN [12][14] Company-Specific Insights 1. Harbin Electric (1133 HK) - **Sector**: Electrical Equipment - **Market Cap**: USD 3.648 billion - **Current Price**: HKD 15.53; **Target Price**: HKD 22.00 - **PE Ratio**: 10.7; **PB Ratio**: 1.6; **ROE**: 16.2% - **Key Points**: - Benefiting from China's push for energy self-sufficiency, particularly in coal and nuclear power [16][18] - Expected earnings CAGR of 34% from 2024-2027 [19] - Potential inclusion in Stock Connect in 2026 [19] 2. Horizon Robotics (9660 HK) - **Sector**: Auto Components - **Market Cap**: USD 14.901 billion - **Current Price**: CNY 8.44; **Target Price**: CNY 11.00 - **Key Points**: - Positioned to benefit from the growth of autonomous driving technology [23][25] - Expected revenue CAGR of 64% from 2025-2027 [27] 3. Goldwind Science & Tech (002202 CH) - **Sector**: Electric Utilities - **Market Cap**: USD 8.753 billion - **Current Price**: CNY 15.35; **Target Price**: CNY 20.40 - **Key Points**: - Leading manufacturer of wind turbines with strong demand in emerging markets [30][32] - Expected net profit growth of 58% in 2025 [32] 4. Trip.com Group (TCOM US) - **Sector**: Internet Software & Services - **Market Cap**: USD 48.707 billion - **Current Price**: USD 74.52; **Target Price**: USD 90.00 - **Key Points**: - Dominates China's online travel market with over 50% GTV [39] - Expected revenue growth of 15% CAGR from 2025-2027 [39] 5. BOCHK Holdings (2388 HK) - **Sector**: Commercial Banks - **Market Cap**: USD 54.013 billion - **Current Price**: HKD 39.70; **Target Price**: HKD 45.20 - **Key Points**: - Benefits from increased cross-border opportunities and offers a 5.5% dividend yield [44][46] 6. PB Fintech (POLICYBZ IN) - **Sector**: Internet Software & Services - **Market Cap**: USD 8.999 billion - **Current Price**: INR 1,734.70; **Target Price**: INR 2,250.00 - **Key Points**: - Operates India's largest online insurance marketplace [49] - Expected revenue CAGR of 30% from 2025-2028 [51] 7. Phoenix Mills (PHNX IN) - **Sector**: Real Estate Management & Development - **Market Cap**: USD 6.904 billion - **Current Price**: INR 1,714.80; **Target Price**: INR 2,110.00 - **Key Points**: - Largest mall operator in India, evolving into a mixed-use developer [54][56] 8. E-Mart (139480 KS) - **Sector**: Multiline Retail - **Market Cap**: USD 1.482 billion - **Current Price**: KRW 79,000.00; **Target Price**: KRW 120,000.00 - **Key Points**: - Trading at 0.2x PB, highlighting deep value [59] - Transformation into a multiline retailer with various catalysts for growth [60] 9. E Ink Holdings (8069 TT) - **Sector**: Technology - **Market Cap**: Not specified - **Current Price**: TWD 169.00; **Target Price**: TWD 305.00 - **Key Points**: - Holds over 90% of the global e-paper market and expanding capacity [62] 10. ICTSI (ICT PM) - **Sector**: Transport & Logistics - **Market Cap**: Not specified - **Current Price**: PHP 558.50; **Target Price**: PHP 630.00 - **Key Points**: - Offers growth and yield at attractive valuations [62] 11. City Developments (CIT SP) - **Sector**: Real Estate Management & Development - **Market Cap**: Not specified - **Current Price**: SGD 7.43; **Target Price**: SGD 11.00 - **Key Points**: - Positioned to benefit from a turnaround in Singapore's property sector [62] 12. Sumber Alfaria Trijaya (AMRT IJ) - **Sector**: Retail - **Market Cap**: Not specified - **Current Price**: IDR 1,895.00; **Target Price**: IDR 2,900.00 - **Key Points**: - Expected to benefit from policies boosting consumption in Indonesia [62] Additional Insights - Asian dividends have doubled over the last 20 years, indicating potential for further increases in payout ratios [12] - The report emphasizes the importance of EPS growth for continued market gains, particularly in China [12][14]

Market Performance - On November 24, US stock indices closed higher, with the Dow Jones up 0.44%, S&P 500 up 1.55%, and Nasdaq up 2.69% [1] - Major tech stocks saw significant gains, with Tesla and Google both rising over 6% [3] Notable Stock Movements - Broadcom (AVGO) surged 11.10% with 46.63 million shares traded, marking its largest increase since April [4] - GoPro (GPRO) increased by 9.93%, Western Digital (WDC) rose 8.43%, and Tesla (TSLA) climbed 6.82% [4] - Other notable gains included Seagate Technology (STX) up 6.69%, Tyson Foods (TSN) up 6.52%, and Coinbase (COIN) up 6.47% [5] Corporate Developments - Google announced a multi-million dollar cloud services agreement with NATO, aimed at providing secure sovereign cloud services [6] - Amazon plans to invest up to $50 billion to expand its AWS AI and high-performance computing capabilities for US government clients, with construction expected to begin in 2026 [6] Semiconductor Sector - The semiconductor sector showed strength, with the Philadelphia Semiconductor Index rising 4.6% and Micron Technology increasing nearly 8% [7] - AMD and Nvidia also saw gains, with AMD up over 5% and Nvidia up 2% [7] Chinese Stocks - Chinese stocks experienced a rally, with the Nasdaq Golden Dragon China Index rising 2.82%, and notable increases in Baidu (BIDU) up over 7%, Bilibili up over 6%, Alibaba up over 5%, and NIO up over 3% [7][8] Commodity Prices - The dollar index fell 0.04%, closing at 100.144 [10] - Oil prices increased, with WTI crude oil futures up $0.78 to $58.84 per barrel, and Brent crude oil futures up $0.81 to $63.37 per barrel [10] - Bitcoin futures rose 5.13%, closing at $88,940, while Ethereum futures increased 7.24% to $2,969.50 [10] Federal Reserve Outlook - Goldman Sachs predicts the Federal Reserve will implement a third consecutive rate cut in December, with expectations of further cuts in March and June 2026 [11][12] - The firm anticipates that the Fed will transition to a more neutral policy stance as inflation trends continue to slow [11][12]

商报讯(记者杨伊琳)11月的这几个周末，随着全国多地中小学陆续试行秋假制度，旅游市场迎来一 波"错峰出行"小高峰。秋假不仅为学生提供了走出课堂、亲近自然的机会，更有效带动了淡季旅游消 费。 "今年秋假期间，从浙江出发的酒店预订订单量较去年同期增长68%，机票预订订单量同比增长 22%。"携程平台负责人表示，浙江秋假期间的热门出行目的地有杭州、上海、宁波、北京、南京等， 热门景点前五名为灵隐飞来峰景区、西湖观光游览车、上海迪士尼度假区、黄山风景区、上海海昌海洋 公园。 热门目的地和景点也呈现多元化趋势。除北京、上海、广州等传统城市外，毕棚沟、九寨沟等自然风景 区，以及南越王博物院、成都自然博物馆等文化场所均受到游客青睐。 亲子游更有料 为抓住秋假市场机遇，旅游业者纷纷推出差异化、高品质产品，摆脱价格战。携程研学游在11月针对性 推出多条精品线路：在"金秋京城"亲子营中，串联清华/北大校园研学，并融入胡同非遗体验；在"崇左 秘境"亲子营中，带领孩子寻觅白头叶猴、出海追粉色海豚；在"探徽州"产品中，特邀黄山第十九代守 松人讲述守护故事。这些产品深度融合了历史、自然与文化教育，实现了从"单纯观光"到"沉浸式学 习"的 ...

Investment Rating - The investment rating for the company is "Outperform the Market" [6] Core Insights - The company demonstrated strong performance in Q3, with revenue growth of 15.5% year-on-year, surpassing Bloomberg's expectation of 14.6% [11] - The Non-GAAP net profit increased significantly by 221.2% to 191.56 billion yuan, primarily due to the sale of a stake in Makemytrip [11] - The adjusted EBITDA related to the main business was 63.5 billion yuan, reflecting an 11.7% increase, which also exceeded expectations [11] Revenue Breakdown - The company's accommodation booking revenue reached 80.5 billion yuan, up 18.3%, while transportation ticketing revenue was 63.1 billion yuan, up 11.6% [12] - International platform revenue is expected to grow by 40%, with Trip.com platform hotel and flight bookings increasing over 60% [12] - Domestic revenue is estimated to have grown about 10%, with hotel night stays maintaining a growth rate of 15% [12] Profitability Analysis - The company's gross margin decreased by 0.7 percentage points year-on-year, attributed to structural impacts from the growth of Trip.com [13] - The operating profit margin (OPM) for the first three quarters showed a gradual improvement in the decline rate, indicating operational efficiency [13] - The company is expected to maintain a total revenue growth rate of over 15% despite short-term fluctuations in international travel [14] Financial Forecasts - The company is projected to achieve Non-GAAP net profits of 318 billion yuan in 2025, with a dynamic PE ratio of 11x [14] - Revenue forecasts for the upcoming years are as follows: 61.86 billion yuan in 2025, 71.40 billion yuan in 2026, and 82.24 billion yuan in 2027, reflecting a steady growth trajectory [5][15]

Group 1 - Ctrip Group and the Turkish Tourism Promotion and Development Agency have announced a deepened strategic partnership to promote Turkey as a "super destination" for global tourists [1] - Ctrip's data indicates that inbound flight bookings to Turkey are expected to grow by 38% year-on-year in the first half of 2025, while hotel bookings are projected to increase by 16% [1] - Major source markets for Turkey include the UK, Germany, and China, with Indonesia showing remarkable growth in bookings, up 178% year-on-year [1] Group 2 - In Q3, Ctrip's outbound hotel and flight bookings reached 140% of the same period in 2019, with a year-on-year growth of nearly 20%, outperforming market trends [1] - Popular outbound destinations include Japan, South Korea, and Southeast Asia, with Europe, particularly Iceland and Norway, showing significant booking increases [1] - Ctrip's overall accommodation booking revenue in Q3 grew by 18% year-on-year and 29% quarter-on-quarter, driven by strong tourism demand during summer and the National Day holiday [1] Group 3 - The company's international business saw a total booking volume growth of approximately 60% in Q3, with the Asia-Pacific region remaining a key focus [1] - The Trip.com app experienced a 69% year-on-year growth in monthly active users globally (excluding mainland China) during October and November, with a 64% increase in the Asian market [1] - Domestic hotel prices showed signs of stabilization, with a narrowing year-on-year decline in Q3, and a rising trend during the Golden Week [1] Group 4 - Ctrip's adjusted net profit forecast for 2025 has been raised from 18.3 billion to 32.3 billion, maintaining projections of 20 billion and 22 billion for 2026 and 2027 respectively [2] - The adjusted PE ratios for 2025-2027 are projected to be 11, 17, and 16 times, respectively, reflecting confidence in the company's overseas business growth [2]