Core Viewpoint - Dalian Shengya (600593.SH) has announced a plan to issue A-shares to specific investors, aiming to raise approximately 956.34 million yuan to repay debts and enhance liquidity, which will lead to a change in control of the company [1][3][7]. Group 1: Share Issuance Details - The planned issuance price is set at 24.75 yuan per share, with a maximum of 38,640,000 shares to be issued, representing up to 30% of the company's total shares before the issuance [3][4]. - The specific investor for this issuance is Shanghai Tongcheng Enterprise Management Partnership, which is a holding entity established by Tongcheng Travel, listed on the Hong Kong Stock Exchange [1][3][6]. - Following the issuance, Shanghai Tongcheng will become the controlling shareholder, and the company will have no actual controller due to the lack of a controlling entity for Tongcheng Travel [3][4]. Group 2: Financial Condition and Objectives - The issuance aims to alleviate the company's debt and operational risks, positioning it as a leading enterprise in the cultural tourism sector through industry integration and IP operation [7]. - Dalian Shengya's consolidated asset-liability ratios were reported at 84.90%, 83.05%, 85.75%, and 85.60% for the end of 2022, 2023, 2024, and March 2025, respectively [7]. - The company has faced financial challenges, with net profits of -76.64 million yuan in 2022, 34.38 million yuan in 2023, and further losses projected for 2025 [8][9]. Group 3: Business Operations - Dalian Shengya primarily operates in the tourism and entertainment sector, managing attractions like Dalian Shengya Ocean World and Harbin Polar Park, focusing on scenic area operations, commercial activities, animal management, and hotel operations [6]. - Tongcheng Travel, the indirect controlling entity, offers a wide range of travel services, including transportation ticketing, accommodation booking, and tour packages, indicating potential synergies with Dalian Shengya's operations [6].

Core Insights - The competition in the local lifestyle service sector, particularly in the instant retail and travel industry, is intensifying among major players like JD, Alibaba, and Meituan, each adopting aggressive strategies to capture market share [2][6][36]. Group 1: Instant Retail and Order Volume - Taobao Flash Sale and Ele.me announced that their daily order volume for instant retail has surpassed 80 million as of July 14, while Meituan reported 150 million orders on July 12, and JD exceeded 25 million in June [1]. Group 2: Local Lifestyle Services - The local lifestyle service sector encompasses a wide range of services beyond food delivery, including travel and accommodation, with Meituan leading in this space [2]. - Meituan's core local business includes food delivery, in-store services, and travel, indicating a comprehensive approach to local services [2]. Group 3: JD's Entry into Travel - JD launched a "JD Hotel PLUS Membership Plan" on June 18, 2025, offering up to three years of zero commission, marking a significant push into the travel sector [4]. - Following JD's move, Alibaba integrated Ele.me and Fliggy into its China e-commerce group, showcasing its ambitions in the travel sector [5]. Group 4: Competition Dynamics - The competition among JD, Alibaba, and Meituan is reshaping the landscape of the local lifestyle service sector, particularly in travel [6]. - The online travel agency (OTA) market is witnessing strategic shifts, with players like Tongcheng Travel maintaining growth despite fierce competition [8][11]. Group 5: Tongcheng Travel's Market Position - Tongcheng Travel has shown impressive growth, with a market share of 15% in the OTA sector, trailing behind Ctrip [8]. - As of December 2024, Tongcheng's user base reached 218 million, significantly outpacing competitors like Ctrip and Fliggy [8]. Group 6: Financial Performance - Tongcheng reported a revenue of 43.77 billion yuan in Q1 2025, a 13.2% increase year-on-year, with adjusted net profit rising by 41.1% [21]. - The company's revenue primarily comes from transportation ticket bookings, with accommodation bookings contributing 27.1% of total revenue [21]. Group 7: Supply Chain and Partnerships - Tongcheng's supply chain is partially shared with Ctrip, allowing it to enhance its product offerings and competitiveness [22][24]. - The partnership with Tencent has provided Tongcheng with a significant advantage in user acquisition through WeChat [12][17]. Group 8: Market Challenges - The OTA market is facing increased competition, with hotels seeking to reduce reliance on platforms by building direct sales channels [40]. - The rise of self-operated channels among hotels poses a long-term challenge to OTA platforms like Tongcheng [40]. Group 9: Future Outlook - The domestic tourism industry is recovering, with projections indicating a rise in tourist numbers and spending [35]. - However, the competitive landscape is evolving, with established players like Meituan and emerging platforms like Douyin intensifying their focus on the travel sector [39][43].

Core Viewpoint - Ctrip's Q1 revenue increased by 16% year-on-year, meeting expectations, while adjusted net profit rose by 3%, exceeding market expectations by 9% due to lower-than-expected marketing expenses [1][2][3] Financial Performance - Q1 2025 net revenue reached 13.9 billion yuan, a 16% year-on-year increase, aligning with market expectations; accommodation bookings grew by 23%, and transportation ticketing revenue increased by 8%, contributing 54% and 22% to total revenue respectively [1] - Gross profit increased by 15% year-on-year, with a gross margin decline of 1 percentage point to 80%; adjusted net profit rose to 4.2 billion yuan, exceeding consensus expectations by 9% [1][3] Operational Data - Domestic hotel night volume saw double-digit growth year-on-year in Q1, with ADR experiencing a slight decline; however, a narrowing of the decline is expected in April and May [1] - Internationally, hotel and flight bookings increased by over 60% year-on-year, with significant contributions from the Asia-Pacific region; inbound travel bookings more than doubled year-on-year, benefiting from favorable policies [2] Market Outlook - The domestic business outlook remains robust, while overseas operations are in an investment phase; during the May Day holiday, domestic travel volume and revenue increased by 8% and 6% respectively [2] - Ctrip's domestic hotel bookings rose by 20% year-on-year during the holiday, with cross-border orders increasing by 30% and inbound bookings up by 150% [2] Financial Forecast and Valuation - The company has slightly adjusted its 2025 revenue and profit forecasts, expecting a 15% year-on-year revenue increase, with accommodation bookings growing by 16% and transportation bookings by 9% [3] - The target price is maintained at 591 HKD (9961.HK) / 76 USD (TCOM.US), corresponding to a 20x P/E ratio for 2025, with a "Buy" rating upheld [3]