The Zhitong Finance App learned that Yamato released a research report saying that Ctrip Group-S (09961) announced its results for the second quarter of this year and still has a constructive view on the company's long-term prospects, as international business is becoming a new growth engine, and is encouraged by management to speed up the execution of repurchases; based on a 12-month forward-looking price-earnings ratio of 11.7 times, it is about 40% lower than the three-year average of 19.8 times, which is about 40% lower than the three-year average. Reiterates the “Buy” rating and a 12-month target price of HK$508.

According to the report, the company's second-quarter results showed total revenue of 15.663 billion yuan, an increase of 5.5% over the previous year; adjusted operating income was 4.365 billion yuan, and adjusted net profit was 4.798 billion yuan. On the other hand, the revenue of international OTA platforms increased by more than 50% year on year in the second quarter, contributing about 20% to revenue, and inbound tourism revenue also recorded a high double-digit increase over the same year; management indicated that the profit margin contributed by Trip.com was corrected. The bank expects total revenue for the third quarter to increase 2% year-on-year to RMB 18.8 billion, with an adjusted operating margin of 31%; it also expects the number of shares to continue to decline in the second half of the year, which will provide downward support for stock prices.

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