Zhi Tong Cai Jing·2025-11-17 06:47Core Viewpoint - Ctrip Group's stock price has experienced a decline of over 6%, currently down 4.17% at HKD 552.5, with a trading volume of HKD 1.316 billion, following travel advisories against visiting Japan [1] Group 1: Market Reaction - Ctrip's stock fell sharply after the Chinese government issued warnings to citizens to avoid travel to Japan, leading to a significant number of hotel cancellations [1] - The company's customer service indicated that they are actively managing cancellations and assisting customers with refunds, with some hotels agreeing to free cancellations [1] Group 2: Business Performance - Goldman Sachs reported that Ctrip's outbound travel business is normalizing, with a year-on-year growth of 14-15%, slightly above the company's guidance of 10-20% [1] - According to Guotai Junan Securities, Ctrip is benefiting from economies of scale in R&D and management expenses, with adjusted profit margins on an upward trajectory [1] - Profitability is expected to improve further with the anticipated earnings recovery of Trip.com [1]