Ctrip.com International Ltd. (NASDAQ:CTRP) is a web-based, travel service provider that caters to all aspects of a traveler’s needs, from hotel accommodations to flights. The company’s recently released 2010 Q2 results were more than impressive. From our own travel experiences, we have witnessed Ctrip’s presence in kiosks and offices in China’s airports. This company is one among many that stand to profit from China’s booming economy. The facts below reiterate why we invested in CTRP today:
- Net revenues up 44% yoy and 18% quarter-over-quarter.
- China has the greatest number of internet users in the world, and its economy continues to boom.
- The upcoming Chinese holiday from October 1st-7th will bring even more traffic to Ctrip, as everyone will be traveling.
Ctrip has 16 offices throughout China, and has recently acquired travel providers in Taiwan and Hong Kong, thus expanding its reach. The company provides a growing amount of corporate travel management to meet the increase in demand. As a result, corporate travel revenues increased 83% yoy. The company expects continued net revenue growth for the current 3rd quarter.
Disclosure: Long CTRP common stock; Short CTRP puts