Jinwu Financial News | According to China Merchants Securities Research Report, Ctrip Group (09961) released its 2024 Q1 financial report. During the reporting period, the company achieved operating income of 11.92 billion yuan/ +29.6%, and achieved NON-GAAP net profit of 4.06 billion yuan/ +96.4%. Continued recovery in the domestic travel market & outbound travel market drove continued growth in short-term performance.
The bank continued that domestic, outbound, and international growth rates were outstanding in Q1, and the combined cost-side optimization performance was better than market expectations. In the short term, as the domestic travel market & outbound travel market continues to recover, although prices have declined slightly, volume increases are still worth looking forward to, and the travel market is steady, moderate and positive. In the long run, with the restoration of outbound travel and the gradual improvement of the company's overseas layout, Trip.com and SkyScanner are expected to become the driving force for the company's revenue growth. It is recommended to focus on the company's outbound travel restoration process and overseas market expansion. The company's net profit from NON-GAAP for 24-26 is estimated to be 165/197/23.3 billion yuan, respectively. The current stock price corresponds to the 24-26 PE of 17x/14x/12x, maintaining a “highly recommended” rating.