Tag Archives: qunr

Qunar’s Airline Battle Won’t Slug No. 1 Chinese Agency Ctrip: ITG

Qunar ‘s ( QUNR ) ongoing dispute with China’s airlines won’t hurt China’s No. 1 online travel agent Ctrip.com ( CTRP ), which is expected to report March-quarter travel sales that doubled vs. last year, ITG analyst Henry Guo said. Ctrip and Qunar stocks split on the stock market today , with shares of Ctrip 1.7%, as Qunar fell 1.5%. IBD’s 11-company Leisure-Travel Booking industry group was up a fraction. For Q1, Guo expects Ctrip to report 4.19 billion to 4.29 billion yuan ($640 million to $650 million), topping the consensus view for 4.16 billion yuan. Ctrip hasn’t yet set a date for its Q1 earnings release. That outperformance would follow a months-long battle with flagship carrier Air China — along with some other local airlines including Hainan Airlines and its Hong Kong Airlines unit, as well as China Eastern’s Shanghai Airlines — over fees charged by booking agents such as Qunar. Ctrip acquired a stake in Qunar after the two formed a partnership last year. In the wake of airlines’ refusal to list on Qunar.com, the site now directs users to Ctrip.com or to airlines’ official websites, Guo wrote in a research note. “We believe this should help drive Ctrip’s organic transportation revenue growth and partially offset Qunar’s air-ticketing weakness,” he wrote. Hotel occupancy in China fell to 53.1% in Q1 from 53.6% in the prior quarter, Guo said, but revenue per available room surged 2.2% year over year, “suggesting improved monetization for the whole hotel industry.” At the same time, he says  InterContinental Hotels Group ( IHG ) and Hilton Worldwide ( HLT ) reported 8.3% and 8% year-over-year growth for their Chinese operations, respectively, and Marriott International ( MAR ) saw revenue per available room in Asia rise 6.8% vs. last year. Guo expects Ctrip to report a 76% to 86% jump in accommodations sales vs. the year-earlier quarter, topping the company’s guidance for 70%-80% growth. He sees Ctrip’s travel segment more than doubling revenue. Packaged tours — one of Ctrip’s growth engines — has benefited from outbound travel to high-demand destinations like Japan, South Korea and Southeast Asia, Guo wrote. Relaxed visa requirements have helped fuel outbound travel. He expects 52% year-over-year growth in this segment.

Q4 Earnings Beat For Chinese Online Travel Firm Ctrip.com

Leading Chinese online travel agency Ctrip.com beat Wall Street estimates in Q4 but missed on Q1 guidance, sending the stock down Thursday. Fourth-quarter revenue jumped 50% from a year earlier to $444 million, the company reported , ahead of analysts’ average expectation of $438 million, in a Thomson Reuters poll. “Our philosophy is to underpromise and overdeliver,” Ctrip.com Chief Financial Officer Cindy Xiaofan Wang said. “It was another very strong quarter and it concludes the exciting year of 2015.” Earnings per American Depositary Share on a GAAP diluted basis were 3 cents, or RMB 0.19, better than the slight loss expected in Thomson Reuters’ analyst poll. ( Excluding share-based compensation charges (non-GAAP), Ctrip’s diluted earnings per ADS were 11 cents for the quarter.) Ctrip shares were down 0.4% near 42.50 in afternoon trading on the stock market today , after diving as low as 39.52 in the morning. Ctrip.com has an IBD Composite Rating of 84, where 99 is the highest. Ctrip.com guidance for the current quarter misses the average view of analysts polled by Thomson Reuters. In a statement accompanying the earnings results, the company said its top line would grow between 75% and 80% in Q1 2016, “reflecting the consolidation of Qunar’s financial results.” Goldman Sachs analyst David Jin called the Q1 guidance “soft” but maintained his buy rating with a price target of 55. A Ctrip share trade in October with Chinese Internet company Baidu ( BIDU )   gave Baidu a greater role in the online travel industry, as China Internet companies position for growth from the online-to-offline, or O2O, services niche. The share-swap deal gave Ctrip.com a larger stake in  Qunar Cayman Islands ( QUNR ), which also reported earnings on Wednesday. Qunar stock was up about 1.9% near 36.20 in afternoon trading Thursday. “The deal will help the whole industry have a chance to achieve long-term profitability,” Xiaofan Wang said. “In the past, competitors have lost tons of money to compete for market share.” Alibaba Group ( BABA ) and Tencent Holdings ( TCHEY ), which reported earnings Thursday morning , have become early players in that field. American online travel giants such as TripAdvisor ( TRIP ) and  OTA giant Priceline ( PCLN ) assuaged Wall Street’s concerns about a slowing global economy — neither firm reported a material impact from the signs of a slowdown. Though rival  Expedia ( EXPE ) missed Wall Street expectations for Q4, the company’s executives also said they were not seeing a slowdown — but the strong dollar has continued to weigh heavily on its results. That may change in the future, Expedia executives said. RELATED:   3 Chinese Internet Stocks Make Moves After Earnings .

3 Chinese Internet Stocks Make Moves After Earnings

Loading the player… Let’s take a look at five Chinese tech stocks that are showing compelling chart action: Ctrip, Qunar, Tencent, Alibaba and Baidu. Chinese online travel agency Ctrip ( CTRP ) reported fourth-quarter revenue that jumped 50% in local currency to beat views. Packaged tour revenue growth was lighter than expected. The company’s first-quarter revenue guidance widely missed expectations. Shares dropped as low as 39.52 in heavy volume, breaching its 50-day and 200-day lines in intraday trade. But as the stock pares its losses to a 0.5% drop to 42.42, it’s looking to find support at those levels. Ctrip is trading about 26% below its high reached last November. Ctrip owns a 45% stake in Qunar ( QUNR ), dubbed the “Kayak.com of China.” Qunar’s fourth-quarter results surpassed expectations late Wednesday. The company did not issue Q1 guidance. Shares seesawed Thursday, quickly reversing higher in the morning before paring their gains to a 1.6% rise. The stock is trading below its 50-day and 200-day lines. Those lines recently crossed, which is a bearish sign. Qunar is 35% below its late-December peak. Tencent’s ( TCEHY ) 45% quarterly revenue increase beat top-line estimates Thursday morning, boosted by strong growth in online games and social network services. The bottom line rose 21% in local currency but fell short as Tencent continues to aggressively invest in video and mobile. Shares surged 4% in light volume, hitting a nearly 4-month high. The stock is now trading 8% below its high of 22.15 reached last April, as it works on the right side of a consolidation pattern. Tencent’s rival Alibaba ( BABA ) is also consolidating. Alibaba, up 0.9% in afternoon trade, is trading 14% below a potential buy point at 86.52. Baidu ( BIDU ), a third Chinese Internet giant, will soon test autonomous cars in the U.S. – potentially rivaling Alphabet ( GOOGL )-owned Google. Baidu wants to introduce a commercial car model by 2018. Shares are working on a deep cup base with a 218.07 buy point. The stock is trading 18% below that level, edging higher Thursday afternoon.