|
Ctrip.com reported its Q3 result on Wednesday after the market close, and its share increased 4.73% on Thursday. Below are some of the highlights (all items are in Chinese Yuan):
| |
9/30/2008 |
6/30/2009 |
9/30/2009 |
| Revenues: |
|
|
|
| Hotel Reservation |
186,005,621 |
226,835,080 |
262,280,259 |
| Air-ticketing |
166,420,800 |
222,283,380 |
241,144,278 |
| Total Revenue |
397,046,452 |
507,658,610 |
583,399,905 |
| Cost of Revenue |
(86,404,046) |
(108,061,461) |
(124,352,706) |
| Gross Profit |
283,733,109 |
368,225,464 |
421,076,429 |
| Net Income |
104,482,151 |
160,143,493 |
190,927,211 |
| |
|
|
|
| Earnings per share |
|
|
|
| Basic |
3.13 |
4.73 |
5.59 |
| Diluted |
3.03 |
4.54 |
5.3 |
In the third quarter, diluted earnings per ADS were RMB2.65 (US$0.39). Excluding share-based compensation charges (non-GAAP), diluted earnings per ADS were RMB3.03 (US$0.44).
Today's closing price is $69.02. Based upon the earning number, the price seems too high.
On the company's website, we can see the projected quarterly earnings below:
Mean High Low
Dec-09 0.34 0.39 0.28
Mar-10 0.37 0.37 0.36
Jun-10 0.45 0.45 0.44
Sep-10 0.46 0.50 0.42
Based upon the projected earnings, and using today's closing price, the P/E ratio ranges from 40.36 to 46.01. The price still seems too high.
It is true that net revenues for the third quarter went up 40% year-on-year and net income shoot up 80% year-on-year. The question is whether this growth rate is sustainable. On the company's website, the projected long term earnings growth ranges between 18% and 30%. If this is true, then the Q3 growth seems to be an exception.
Its small competitor eLong.com (Ticker: LONG) will issue its report on November 23. We'll then make a comparison. |
China Stocks 
