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NEW YORK (TheStreet) - Contributor Eric Jackson details Google's actions in regards to China and how its relations with the country stands to impact the stock.
Showing posts with label Ctrip. Show all posts
Showing posts with label Ctrip. Show all posts
Thursday, March 31, 2011
Friday, March 18, 2011
Chinese IPOs Are Coming (Back)
By Eric Jackson There are signs, however, that several new Chinese companies plan to come to market soon in the U.S. On Monday, Qihoo 360 Technologyfiled a prospectus with the Securities and Exchange Commission to hold an IPO. Qihoo says it is China's third-largest Internet company by user numbers (339 million). It makes antivirus computer security software and is the second-most-popular Internet browser in China after Microsoft's (MSFT - commentary - Trade Now) Internet Explorer. UBS and Citi are co-managing the offering. Qihoo's revenue has exploded over the past two years, going from $17 million in 2008 to $58 million last year. Over this time, the business has completely remade itself. Previously, two-thirds of its revenue came from selling third-party security software, but now more than 93% of its revenue comes from selling its own software and Internet services, including online advertising. Unlike Dangdang and Youku, Qihoo is solidly profitable. Its net margins were 15% last year. The company already has $61 million in cash on its balance sheet as of the end of December. In its filing, the company said it seeks to raise up to $200 million from this offering. [*** This post is an excerpt of the full article, available by clicking here to go to RealMoney.com. Note: subscription required. ***]
RealMoney Contributor
3/17/2011 12:15 PM EDT
Click here for more stories by Eric Jackson
After the successful U.S. market debuts of E-Commerce China Dangdang (DANG -commentary - Trade Now) and Youku.com(YOKU - commentary - Trade Now) in December, I expected to see many more Chinese companies file for initial public offerings in early 2011. Until a few days ago, though, there were none.
Tuesday, April 06, 2010
A China Travel Stock That's Going Places: UTA
By Eric Jackson
RealMoney Contributor
4/5/2010 3:00 PM EDT
Click here for more stories by Eric Jackson
Two weeks ago, I met with Universal Travel Group (UTA - commentary - Trade Now) at its corporate offices in Shenzhen, China. The company is a relatively small player in the fast-growing China travel sector, and it is seemingly undervalued compared with larger rivals such as Ctrip (CTRP - commentary - Trade Now) and eLong (which trades in Hong Kong).
With a price around $9.65, Universal sports a price-to-earnings ratio of 7.9 times and a market capitalization of $140 million. We believe in Universal and believe it will do well in the next couple of years, but investors should be clear on what this company is and what it is not.
Sphere: Related Content
When most people think of Chinese-related travel, they think of Ctrip. Ctrip has the look and feel of any large U.S. travel site, like Expedia (EXPD -commentary - Trade Now). It spends an enormous amount on marketing its brand in China. We saw it in virtually every airport we traveled to during a recent two-week trip. Ctrip's market cap is $5 billion, with a lofty P/E ratio of 54. It makes the majority of its revenue from broker fees on hotel reservations (45%) and air-ticketing services (41%).
Many investors look at Universal as a smaller, undervalued version of Ctrip. If Universal had only half the valuation of Ctrip, this type of thinking goes, there would be an immediate tripling in the stock price. However, this is not a proper way to think about Universal's business or its potential as a stock.
When we met with Universal's managers, they didn't deny that they try to piggyback on Ctrip's well-known brand with U.S. investors. Universal points to its Web site as a means to do travel bookings, with additional call-center support. The company points out its valuation relative to Ctrip. Yet what Western investors need to understand is that Universal, at its core, is a packaged-tour company, not a smaller version of Ctrip.
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