According to a research report by CMB International, Ctrip (TCOM, Financial) posted a 16% year-on-year increase in revenue for the third quarter, surpassing market expectations by 2%. The company's Non-GAAP operating profit exceeded forecasts by 6%, primarily due to lower-than-expected sales and marketing expenses. Excluding the impact of affiliate company equity, Non-GAAP net profit reached 5.4 billion yuan, 13% higher than anticipated.
CMB International highlighted that Ctrip's domestic business growth is more robust than expected, and its overseas operations are recovering well. The report suggests that Ctrip's strategic investments in international market expansion could enhance long-term revenue and profitability. Consequently, the target price for Ctrip has been raised from $65.8 to $71, maintaining a "buy" rating.
The bank currently forecasts that Ctrip's revenue for the fourth quarter will grow by 20% year-on-year to approximately 12.4 billion yuan. The Non-GAAP operating profit margin is expected to reach 20.7% for the fourth quarter and 30.3% for the entire year.
