Citigroup: Ctrip's fourth quarter performance is healthy, rated "buy"

Citigroup released a research report stating that Ctrip Group's fourth-quarter revenue last year increased by 21% year-on-year to 15.4 billion RMB, which was 3% higher than the bank and market expectations. The gross profit margin was 79%, higher than the bank's expectation of 78.5%. Non-GAAP profit was 3.48 billion RMB, exceeding market expectations of 3.2 billion RMB. The bank believes that the group's fourth-quarter performance is healthy, with revenue significantly better than expected, as Ctrip's international platform performed strongly during the peak season and other income mainly consisting of advertising and credit solutions exceeded expectations. The bank currently has a target price of $82 for Ctrip's US stocks and a "buy" rating.