Chinese Travel Shares Soar On Priceline Results (PCLN, EXPE, CTRP, LONG, UTA, SVN, HMIN)

Tickerspy’s Chinese Travel Index

CHINESE TRAVEL INVESTING IDEAS

• Popular long ideas: CTRP, HMIN, ZNH
• Popular short ideas: CTRP, HMIN, AMCN
• Top dividend plays: None
• Pro favorites: CTRP, HTHT, HMIN

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CHINESE TRAVEL COVERAGE

This index includes firms that are involved in various segments of the travel industry in China, including airlines, hotels and other travel-related services.

• JP Morgan Bullish On Chinese Travel Stocks (LONG, CTRP, SVN, HMIN, HTHT)
• Home Inns Leads Chinese Travel Rally After Earnings (HMIN, HTHT, SVN, CTRP, LONG)
• Three China Sectors Bucking The Sell-Off (HTHT, CEA, AMCN, CAAS, SORL, CYD, NSANY, TM, STP, TSL, JKS, CSIQ)

CHINESE TRAVEL CHART

CHINESE TRAVEL METRICS

Avg. Market Cap:	$1.7B
Avg. P/E Ratio:	28.0
Avg. Div Yield:	0.0%

Online travel booking firm Priceline.com (PCLN) shot ahead by 20% on Wednesday after the company announced its second quarter results, spurring a sympathy rally in the Far East. Priceline’s Q2 net income surged by more than 70% to $115 million or $2.26 per share, from $67 million or $1.38 per share in the same period last year. Excluding certain expenses, adjusted EPS came to $3.09, easily topping analysts’ $2.65 consensus. Revenue was up 27% to $767.4 million year-over-year, and the company said it will rise between 29% and 34% in the current quarter.

The report served well to spur a rally for competitor Expedia (EXPE) and other players in various segments of the domestic travel industry. Meanwhile, the Chinese Travel Stocks Index is up by 3% on the day with sparse news from individual components.

Ctrip.com International (CTRP) is ahead by 4% on the news while competitor eLong (LONG) is gaining only fractionally. The former will report its second-quarter results after Monday’s close. Travel booking small-cap Universal Travel (UTA) is also among the segment’s top performers for the session, up by more than 5%.

In the hotel segment, 7 Days Group Holdings (SVN) and Home Inns & Hotels (HMIN) are both up by more than 3% in the rally. Both will report their quarterly results later this month, so it will be interesting to see if today’s knee-jerk sympathy rally is justified based on Priceline results.

Investors can track the Chinese Travel Stocks Index for performance trends and a suite of other metrics at tickerspy.com.

Tags: CTRP, EXPE, HMIN, LONG, PCLN, SVN, UTA