Investment Rating - The investment rating for the company is "Buy" (maintained) for both US and Hong Kong stocks [7]. Core Views - The report expresses optimism about the company's long-term growth potential overseas, highlighting strong performance in both domestic and international travel sectors [1][3]. - The company's revenue for Q1 2025 was 13.9 billion RMB, representing a year-over-year increase of 16.2%, which aligns with market expectations [1][2]. - Adjusted net profit for Q1 2025 was 4.2 billion RMB, showing a year-over-year increase of 3.3%, exceeding expectations by 9.2% due to effective cost control [1][2]. Summary by Sections Q1 2025 Performance - The company reported a revenue of 13.9 billion RMB, which is a 16.2% increase year-over-year, meeting the consensus estimate of 13.8 billion RMB [1]. - Adjusted net profit was 4.2 billion RMB, a 3.3% increase year-over-year, surpassing expectations by 9.2% primarily due to better management of sales, research, and administrative expenses [1][2]. Domestic and International Travel Trends - Domestic travel demand remains resilient, with a double-digit growth in hotel bookings year-over-year, despite a slight decline in average daily rates [3]. - International business continues to grow, with inbound travel orders increasing over 100% year-over-year and outbound ticket and hotel orders exceeding 120% of 2019 levels [3]. Profit Forecast and Valuation - Revenue projections for 2025-2027 are estimated at 61.3 billion, 71.2 billion, and 82.3 billion RMB respectively, with adjusted net profits of 19.3 billion, 22.5 billion, and 26.0 billion RMB [4][11]. - The target price for the US stock is set at $78.00 and for the Hong Kong stock at HKD 559.40, based on a 19x PE ratio for 2025 [4][14].

Core Insights - Ctrip Group reported a net operating revenue of 13.8 billion RMB for Q1 2025, a year-on-year increase of 16% [1] - The net profit attributable to shareholders was 4.3 billion RMB, unchanged from the same period in 2024 [1] - The diluted earnings per share were 6.09 RMB [1] Business Performance - International OTA platform bookings increased by over 60% year-on-year [1] - Inbound travel bookings saw a growth of over 100% year-on-year [1] - Outbound hotel and flight bookings exceeded 120% of the pre-pandemic levels in 2019 [1] Revenue Breakdown - Accommodation booking revenue reached 5.5 billion RMB, up 23% year-on-year, driven by growth in accommodation bookings [1] - Transportation ticketing revenue was 5.4 billion RMB, an 8% increase year-on-year, attributed to the rise in ticket bookings [1] - Vacation business revenue amounted to 947 million RMB, a 7% year-on-year increase, mainly due to growth in vacation bookings [1] - Business travel management revenue was 573 million RMB, up 12% year-on-year, supported by an increase in business travel orders [1] - Business travel management revenue decreased by 18% quarter-on-quarter due to seasonal effects [1] Industry Outlook - The tourism industry maintained strong growth momentum in Q1 2025, supported by robust consumer demand and favorable policies [2] - The company emphasized its diversified market layout, which positions it to respond to global economic fluctuations and seize emerging opportunities [2] - The CEO highlighted the importance of innovation and customer-centric solutions to meet the evolving needs of travelers, contributing to sustained growth and long-term value creation for stakeholders [2]