Core Insights - The company achieved revenue of 5.509 billion yuan in Q3 2025, representing a year-on-year increase of 10.4%, and an adjusted net profit of 1.06 billion yuan, up 16.5% year-on-year [1] - The adjusted net profit margin reached 19.2%, an increase of 1 percentage point year-on-year [1] Revenue Breakdown - The core OTA (Online Travel Agency) business showed robust growth with revenue of 4.609 billion yuan, up 14.9% year-on-year; however, vacation revenue decreased by 8.0% to 900 million yuan due to impacts in Southeast Asia and reduced buyout business [1] - Within the OTA business, accommodation revenue was 1.580 billion yuan (+14.7%), transportation revenue was 2.209 billion yuan (+9.0%), and other revenues, including hotel management, reached 821 million yuan (+34.9%) [1] Accommodation and Transportation Insights - The accommodation booking business benefited from increased room nights, a recovery in ADR (Average Daily Rate) since Q2, and a shift towards higher-quality products, leading to a 15% year-on-year revenue growth in Q3 [1] - The transportation business saw a 9% year-on-year revenue increase in Q3, supported by normalized domestic flight demand, with expectations for further improvement in the company's take rate [1] Hotel Management Business - The hotel management business, identified as the company's second growth curve, maintained high growth, with nearly 3,000 hotels in operation as of the end of September, an increase of about 300 from Q2, and 1,500 hotels in preparation [2] - Wanda Hotel Management is expected to be consolidated in Q4, contributing some revenue, although its impact on the annual results is limited [2] International Travel Business - The outbound travel business turned profitable in Q3 and is expected to reach breakeven for the full year; the international air ticketing business showed strong growth, accounting for 6% of total transportation ticketing revenue, up 2 percentage points year-on-year [2] - The company aims to increase the share of outbound travel business in ticketing and hotel revenue to 10-15% in the future [2] Profitability and Forecast - The company's profitability is on an upward trajectory, with the adjusted net profit margin continuing to improve, reaching 19.2% in Q3, up 1 percentage point year-on-year [2] - The company forecasts overall revenues of 19.32 billion, 21.66 billion, and 24.60 billion yuan for 2025-2027, with adjusted net profits of 3.37 billion, 3.87 billion, and 4.40 billion yuan respectively, corresponding to a PE ratio of 14, 13, and 11 times at the current stock price [3]

Core Viewpoint - Ctrip Group reported strong financial performance in Q3 2025, with significant revenue growth driven by robust travel demand and successful international business expansion [1][2]. Financial Performance - The company achieved a revenue of 18.37 billion yuan in Q3 2025, representing a year-over-year increase of 15.5% [1]. - Gross margin stood at 81.7%, down 0.7 percentage points year-over-year [1]. - Operating profit reached 5.57 billion yuan, up 11.3% year-over-year [1]. - Net profit soared to 19.89 billion yuan, a remarkable year-over-year increase of 194.0%, primarily due to gains from the disposal of certain investments [1]. Revenue Breakdown - Accommodation booking revenue was 8.05 billion yuan, growing 18.3% year-over-year [1]. - Transportation ticketing revenue reached 6.31 billion yuan, up 11.6% year-over-year [1]. - Vacation business revenue was 1.61 billion yuan, increasing by 3.1% year-over-year [1]. - Business travel management revenue amounted to 0.76 billion yuan, up 15.2% year-over-year [1]. - Other business revenue was 1.65 billion yuan, showing a significant growth of 33.9% year-over-year [1]. International Business Growth - The international OTA platform saw total bookings increase by approximately 60% year-over-year in Q3 2025 [1]. - Inbound tourism bookings more than doubled, growing over 100% year-over-year [1]. - Outbound hotel and flight bookings reached 140% of the levels seen in the same period of 2019, with the Asia-Pacific region being a major contributor to this growth, exceeding 50% overall [1]. Cost Structure - Sales expense ratio was 22.8%, up 1.5 percentage points year-over-year, reflecting increased marketing investments in overseas markets [2]. - Management expense ratio was 6.2%, down 0.4 percentage points year-over-year [2]. - R&D expense ratio was 22.3%, down 0.7 percentage points year-over-year [2]. - Total expense ratio was 51.3%, an increase of 0.5 percentage points year-over-year [2]. Non-Recurring Gains - The sale of MakeMyTrip shares resulted in other income of 17.03 billion yuan in Q3 2025, a substantial increase from 1.78 billion yuan in the same period last year [2]. - This transaction led to a significant rise in corporate income tax expenses to 3.3 billion yuan, compared to 720 million yuan in the previous year [2]. Investment Outlook - The company is positioned as a leading domestic OTA, with steady growth in domestic operations and promising progress in international expansion [2]. - Revenue projections for 2025-2027 are estimated at 61.68 billion yuan, 70.16 billion yuan, and 79.54 billion yuan, with net profits of 31.65 billion yuan, 20.62 billion yuan, and 23.59 billion yuan respectively [2]. - The target market capitalization is set at 452.4 billion HKD, with a target price of 635 HKD per share, indicating a potential upside of 12.3% [2].

Investment Rating - The investment rating for the company is "Outperform the Market" [6][4][18] Core Views - The company is expected to achieve resilient revenue growth in Q3, with a projected year-on-year revenue increase of 9.8% and an adjusted net profit growth of 14.3% [1][9] - The core OTA business is performing well, with OTA revenue expected to grow by 14.9% year-on-year in Q3, driven by strong growth in accommodation booking and transportation services [2][10] - The acquisition of Wanda Hotel Management has been completed, enhancing the company's supply chain and positioning it among the top 10 hotel management companies in China [3][11] Summary by Sections Revenue and Profitability - Q3 revenue is projected to grow by 9.8% year-on-year, with adjusted net profit expected to increase by 14.3% [1][9] - The OTA business is anticipated to see a 14.9% increase in revenue, with accommodation bookings expected to rise by 14.5% and transportation services by 9.5% [2][10] Business Segments - The OTA segment is expected to benefit from a combination of online market penetration and international business growth, while the vacation segment is under pressure, with a projected revenue decline of 11% due to low outbound travel willingness in Southeast Asia [2][10] - The acquisition of Wanda Hotel Management is expected to positively impact profitability in the hotel management segment, with a focus on high-end brand expansion [3][11] Financial Projections - The company forecasts adjusted net profits of 33.7 billion, 39.3 billion, and 45.3 billion for 2025, 2026, and 2027 respectively, with corresponding dynamic PE ratios of 14, 12, and 11 [4][5] - Revenue is expected to reach 11.896 billion in 2023, growing to 24.712 billion by 2027, reflecting a compound annual growth rate [5][16]

Investment Rating - The investment rating for the company is "Outperform the Market" [6][4][18] Core Views - The company is expected to achieve resilient revenue growth in Q3, with a projected year-on-year revenue increase of 9.8% and an adjusted net profit growth of 14.3% [1][9] - The core OTA business is performing well, with OTA revenue expected to grow by 14.9% year-on-year in Q3, driven by strong growth in accommodation booking and transportation services [2][10] - The acquisition of Wanda Hotel Management has been completed, enhancing the company's supply chain and positioning it among the top 10 hotel management companies in China [3][11] Summary by Sections Revenue and Profitability - Q3 revenue is projected to grow by 9.8% year-on-year, with adjusted net profit expected to increase by 14.3% [1][9] - The OTA business is anticipated to see a 14.9% increase in revenue, with accommodation bookings expected to rise by 14.5% and transportation services by 9.5% [2][10] Business Segments - The OTA segment is expected to benefit from a combination of online market penetration and international business growth, while the vacation segment is under pressure, with a projected revenue decline of 11% due to low outbound travel willingness in Southeast Asia [2][10] - The acquisition of Wanda Hotel Management is expected to positively impact profitability, with the company now managing over 2,700 hotels and a significant expansion in high-end hotel offerings [3][11] Financial Projections - The company forecasts adjusted net profits of 33.7 billion, 39.3 billion, and 45.3 billion for 2025, 2026, and 2027 respectively, with corresponding dynamic PE ratios of 14, 12, and 11 [4][5] - Revenue is expected to reach 11.896 billion in 2023, growing to 24.712 billion by 2027, reflecting a compound annual growth rate of approximately 12% [5][16]

Group 1 - The core point of the article is that Ctrip's founders are reducing their holdings, with significant sales planned by both the chairman and the president, while the company shows strong financial performance and a robust recovery in international travel [1][2][3] Group 2 - Ctrip's founder and chairman, Liang Jianzhang, plans to sell 1 million ADS, valued at approximately $7.375 million, marking his first disclosure of a reduction plan since 2025 [1] - Co-founder and president, Fan Min, has also submitted a reduction plan to sell 70,000 ADS, valued at about $454.44 million, and has made multiple reductions throughout the year totaling approximately $30.694 million [1] - As of February 28, 2025, the core management's shareholding has increased, with Liang holding over 36.47 million shares (5.3% ownership) and CEO Sun Jie holding over 14.2 million shares (2.1% ownership) [1] Group 3 - Institutional shareholders have seen notable changes, with Baidu reducing its stake to 45.95 million shares (7.0% ownership), while Capital World Investors also decreased its holdings [2] - BlackRock has emerged as a major shareholder with over 34.81 million shares (5.3% ownership), matching Liang Jianzhang's stake [2] Group 4 - Ctrip reported a strong Q2 2025 performance with net revenue reaching 14.8 billion RMB, a 16% year-on-year increase, driven primarily by the accommodation booking segment, which saw a 21% increase [2] - The international OTA platform showed a robust recovery, with ticket bookings up over 60% year-on-year and inbound travel bookings doubling [3] Group 5 - Ctrip's board approved a share repurchase plan of up to $5 billion, following a previous repurchase of approximately $400 million in ADS [3] - R&D investment in Q2 2025 reached 3.5 billion RMB, a 17% increase, representing 24% of the net revenue, indicating a commitment to innovation and market leadership [3] Group 6 - As of the latest report, Ctrip's stock price is $71.23, with a total market capitalization of $46.556 billion, reflecting a year-to-date increase of 4.25% [3]

Core Insights - Tongcheng Travel reported Q2 revenue of 4.669 billion yuan, a year-on-year increase of 10.0%, significantly slowing from 48.1% in the same period last year [2] - The adjusted EBITDA margin rose to a record high of 25.4% compared to 21.5% in the same period last year, while the adjusted net profit margin increased to 16.6% from 15.5% [2] - The company achieved a cumulative service user count of 1.99 billion by the end of Q2, a year-on-year growth of 7.2%, with paid users reaching a new high of 252 million [2] Financial Performance - For the first half of 2025, Tongcheng Travel achieved revenue of 9.05 billion yuan, a year-on-year increase of 11.5% [2] - Adjusted EBITDA for the first half was 2.34 billion yuan, reflecting a year-on-year growth of 35.2% [2] - Adjusted net profit for the first half reached 1.56 billion yuan [2] Business Segments - The accommodation booking business showed relative resilience, with revenue growing by 15.2% year-on-year [2] - Revenue from outbound travel groups to Southeast Asia declined due to safety concerns [2]