Today, 12:17 PM
- Chinese Internet stocks are adding to their big recent gains following a 2.7% overnight rally in Shanghai, as investor sentiment towards Chinese equities continues improving following a string of stimulus moves. Today's gains come with the Nasdaq (took out its 2000 highs on Friday) down 0.2%.
- Baidu (BIDU +3%) is among the winners. Others include Youku (YOKU +10.7%), Vipshop (VIPS +4.1%), Dangdang (DANG +6.7%), 58.com (WUBA +3%), E-House (EJ +3.7%), 500.com (WBAI +4.3%), Sina (SINA +4.1%), Bitauto (BITA +3.1%), Autohome (ATHM +2.4%), Qunar (QUNR +3.5%), Xunlei (XNET +5.7%), and Renren (RENN +2.3%).
- Baidu's gains come ahead of its Wednesday Q1 report. Vipshop and 58.com have made fresh highs; the latter is up 61% since the first report emerged of a deal (later confirmed) with rival Ganji.com. Youku is up 53% from an April 2 post-earnings low of $12.31, and 500.com is up 47% since the company suspended all online lottery sales in early April, while stating it will work with regulators to restart sales. Renren is up 31% from its March 30 close, possibly aided by enthusiasm for its large and growing portfolio of online lending investments.
- JD.com and Sky-mobi are rallying today with the help of bullish analyst notes. Perfect World has received a lift from an improved buyout offer.
- ETFs: KWEB, CQQQ, QQQC
Tue, Apr. 7, 12:45 PM
Mon, Apr. 6, 3:15 PM
- Today's notable tech gainers include German 3D printer maker Voxeljet (VJET +5.6%), Chinese online real estate firm SouFun (SFUN +5.3%), software outsourcing firm EPAM Systems (EPAM +8.4%), voice processor developer Audience (ADNC +6.3%), smart TV/home automation chipmaker Sigma Designs (SIGM +4.9%), #2 Chinese online travel firm Qunar (QUNR +6.7%), and international e-commerce services firm Borderfree (BRDR +7.2%). The Nasdaq is up 0.7%.
- Notable decliners include FPGA maker Altera (ALTR -4.5%), optical component vendor NeoPhotonics (NPTN -11%), big data/analytics software provider Hortonworks (HDP -4%), and online family care marketplace Care.com (CRCM -4.4%).
- EPAM has joined other Russia-exposed names in rallying, as oil prices and the ruble both move higher. Sigma is reversing Thursday's post-earnings losses. Qunar has surged to new highs yet again, and is now up 58% since its March 16 Q4 report.
- Altera is returning some of the huge March 27 gains it saw on reports of Intel buyout talks. NeoPhotonics, a recent high-flyer, is down 15% over the last 2 trading days; on Friday, the company filed an 8-K making customary exec. compensation disclosures.
- Previously covered: GoPro, Sony, Geospace, SanDisk, Voltari, VMware, Resonant, 500.com
Fri, Mar. 27, 2:20 PM
- Qunar's (QUNR +6.3%) post-earnings rally has refused to let up. Shares are now up 41% since China's #2 online travel firm beat Q4 estimates and issued strong Q1 guidance on March 16.
- With Qunar now sporting a $4.9B market cap, shares go for nearly 10x a 2015 revenue consensus of $492.6M. Majority owner Baidu (NASDAQ:BIDU) has to be pleased with the jump in Qunar's equity value.
Fri, Mar. 20, 10:08 AM
- Qunar (NASDAQ:QUNR) has surged to new 52-week highs yet again after rival Ctrip posted mixed Q4 results and (more importantly) offered Q1 sales guidance that was far above consensus.
- Qunar is now up 24% since beating Q4 estimates and offering strong Q1 guidance on Monday afternoon. While Ctrip is guiding for 40%-50% Y/Y Q1 sales growth, Qunar (has a much smaller revenue base) is guiding for 85%-90% growth.
- Shares are now within striking distance of a March 2014 all-time high of $36.73.
Wed, Mar. 18, 1:39 PM
- Qunar (QUNR +7.8%) has surged to new 52-week highs today as the Street continues reacting to the Chinese online travel agency's Q4 beat, strong mobile growth, and solid Q1 guidance.
- JG Capital's Henry Guo is pleased with Qunar's declining dependence on its Baidu Zhixin JV (as organic mobile traffic accounts for a larger % of revenue). "We consider the trend a positive as share dilution due to Zhixin partnership should be much less than expected." Marketing spend related to the JV totaled $40.3M in Q4.
Tue, Mar. 17, 12:36 PM
- HSBC has upgraded Qunar (NASDAQ:QUNR) to Overweight after the company beat Q4 estimates on the back of a 5x Y/Y increase in mobile revenue, and offered above-consensus Q1 guidance. While many Chinese Internet stocks remain far below their 52-week highs, Qunar is now less than $2.50 removed from a 52-week high of $33.70.
- Archrival Ctrip (NASDAQ:CTRP), one of those Chinese Internet names far below its highs, is following Qunar higher. Aside from Qunar's top-line numbers, Ctrip might be getting a lift from the Q/Q growth seen in Qunar's average revenue per room night and air ticket, and upbeat CC remarks (transcript) about take rates.
- Specifically, Qunar, which (along with Ctrip) has been in a fierce price war, stated it expects its take rate (currently around 4% for direct sales) to "remain fairly stable for the foreseeable future," and that it expects take rate to grow long-term as coupon discounts decline. The company adds it's now taking "a more tailored approach" to couponing, using analytics to focus discounts on specific hotel markets and create tailored promotions for individual users.
Mon, Mar. 16, 6:03 PM
- In addition to soundly beating Q4 estimates, Qunar (NASDAQ:QUNR) is guiding for 85%-90% Y/Y Q1 revenue growth, above an 81.1% (dollar-based) consensus.
- Driving the Q4 beat: Mobile revenue rose 400.7% Y/Y to $41.5M (49.5% of total revenue). Air ticket volume +61.8% to 24.6M (46% mobile); room night volume +107.7% to 8.9% (70% mobile).
- Flight revenue +116.1% to $55.5M; hotel revenue +76.8% to $16.5M. Revenue/air ticket rose 2% Q/Q and 33.6%, while revenue/room night rose 2.5% Q/Q (a sign that an industry price war is calming?) and fell 14.9%
- Gross margin was 73.5% vs. 72.4% in Q3 and 79.8% a year ago. R&D spend +124.4% Y/Y to $39M; product sourcing +273.9% to $17.8M; sales/marketing +167.6% to $44.9M; G&A +73.9% to $16.6M. Marketing spend for Qunar's Baidu Zhixin JV rose 6% Q/Q to $40.3M.
- Qunar has risen to $29.90 AH.
- Q4 results, PR
Mon, Mar. 16, 5:41 PM
Mon, Mar. 16, 5:10 PM| 1 Comment
Fri, Feb. 27, 2:04 PM
- Many Chinese Internet and mobile names are selling off as the yuan falls to its lowest levels against the dollar since Oct. 2012, thanks to the dollar's broader strength against foreign currencies and ongoing worries China's economy is cooling off. The exchange rate is currently at 6.27.
- A weaker yuan affects the top and bottom lines of Chinese firms, as reported in dollars. It also increases financing costs (should Chinese companies seek to raise capital overseas), and is triggering fears of capital outflows that could lead the yuan to sell off further.
- Notable decliners include YY (YY -5.2%), Vipshop (VIPS -4.1%), SouFun (SFUN -2.1%), Leju (LEJU -3.8%), Bitauto (BITA -3.7%), Autohome (ATHM -3.6%), Sungy Mobile (GOMO -4.2%), Momo (MOMO -6.6%), NetEase (NTES -4.9%), Ctrip (CTRP -2.3%), Qunar (QUNR -3.1%), iDreamSky (DSKY -3.7%), Jumei (JMEI -3.3%), Changyou (CYOU -3.3%), and 500.com (WBAI -4.8%). 500.com was downgraded to Hold by Deutsche today in response to recent provincial license suspensions.
- A few of the aforementioned names also sold off on Wednesday. Forward P/E and P/S multiples for the group are far lower than they were 12 months ago.
Wed, Feb. 4, 2:05 PM
- In a fresh monetary easing move, the PBOC has cut its reserve requirement ratio for banks by 50 bps to 19.5%, its first cut since 2012. Many Chinese Internet and mobile stocks are posting healthy gains on a day the Nasdaq is near breakeven.
- Carriers China Mobile (CHL +2.3%), China Unicom (CHU +4.5%), and China Telecom (CHA +1.9%) are among the gainers. As are online retailers Vipshop (VIPS +4%) and Dangdang (DANG +5.1%).
- Other notable gainers include online video giant Youku (YOKU +3.9%), mobile game publishers Sky-mobi (MOBI +7.8%) and China Mobile Games (CMGE +2.6%), chat app/social network owner Momo (MOMO +4.1%), microblogging leader Weibo (WB +2.7%), online/mobile game developer NetEase (NTES +2.4%), online classifieds leader 58.com (WUBA +2.3%), and #2 online travel agency Qunar (QUNR +3.4%).
- ETFs: KWEB, CQQQ, QQQC
- Previously covered: SouFun, E-House
Dec. 2, 2014, 1:06 PM
- Down AH yesterday after providing light Q4 revenue guidance to go with a Q3 revenue beat and in-line EPS, Qunar (NASDAQ:QUNR) has reversed course. Low expectations seem to be helping - shares were down 33% from a March high of $36.73 going into earnings.
- Top rival Ctrip (NASDAQ:CTRP), however, is seeing more pain. Shares now -18% since Ctrip's Nov. 25 Q3 report.
- On its CC (transcript), Qunar noted headcount had soared to 7K+ at the end of Q3 from 2.5K+ at the end of 2013. The company expects to end 2014 with ~8K workers, but doesn't plan to significantly increase headcount in 2015.
- When asked about competition, CEO C.C. Zhuang asserted Qunar's air travel market lead has widened, and that it has "the fastest growth rates" in the hotel reservation space, where Ctrip continues to lead.
- Qunar respectively saw Y/Y flight ticket and hotel room night volume growth of 57% and 84.6% in Q3; Ctrip's growth rates were 98% and 69%.
Dec. 1, 2014, 5:40 PM
Dec. 1, 2014, 5:13 PM
- Though it beat Q3 revenue estimates (while posting in-line EPS), Qunar (NASDAQ:QUNR) is guiding for 90%-95% Y/Y Q4 revenue growth; consensus is for 95% growth.
- Thanks to gross margin pressure and (especially) heavy spending, op. margin fell to -54.6% (no typo) in Q3 from -50.9% in Q2 and -10.9% a year earlier. Archrival Ctrip can relate.
- Gross margin fell to 72.4% from 73.6% in Q2 and 79.4% a year earlier; Qunar blames online payment processing fees. R&D spend +153.1% Y/Y to $37.4M; sales/marketing +189.6% to $43.4M; online marketing +59.6% to $38.4M; product sourcing +519.9% Y/Y to $16.3M; G&A +267.1% to $17.4M.
- Top-line numbers were strong: Pay-for-performance (P4P) flight revenue +104.1% Y/Y to $50.8M, and P4P hotel revenue +98.1% to $18.2M. Mobile revenue soared 445.1%, and made up 40.4% of total revenue. Flight ticket and hotel room night volumes respectively rose 57% and 84.6%.
- Shares fell 5.9% in regular trading ahead of the release, and also sold off a bit last week on account of Ctrip's Q3 numbers.
- Q3 results, PR
Dec. 1, 2014, 10:38 AM
- Chinese Internet and telecom names are among the biggest tech decliners as the Nasdaq registers a 0.9% drop. A soft November PMI print isn't helping.
- Giants Alibaba (BABA -4.3%) and Baidu (BIDU -2.8%) are among the casualties. As is Qunar (QUNR -5.8%), which reports after the bell.
- Other Internet decliners: BITA -12%. QIHU -4.4%. CTRP -4.3%. SFUN -7.2%. LEJU -7.5%. RENN -6.3%. SINA -3.8%. WB -3%. YY -3.9%. VIPS -3.8%. SOHU -3.5%. MOBI -4.3%. CMGE -8.6%.
- Telecom decliners: CHL -3.6%. CHU -3.9%. CHA -4%.
- ETFs: KWEB, CQQQ, QQQC
QUNR vs. ETF Alternatives
Qunar Cayman Islands Ltd is engaged in the operation of an online travel commerce platform with the provision of pay-for-performance services, display advertising services and other services in the People's Republic of China (PRC).
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