Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

Equity Bottom-Up

<ul>
<li>Media rife with narrative of booming inbound foreign tourism to China</li>
<li>But the numbers are well below historical highs, and climbing up from low base</li>
<li>Chinese tourists, not foreign, determine strength of Chinese tourism recovery</li>
</ul>


Media rife with narrative of booming inbound foreign tourism to China
But the numbers are well below historical highs, and climbing up from low base
Chinese tourists, not foreign, determine strength of Chinese tourism recovery


Chinese Inbound Foreign Tourist Arrivals Up 153% Y/Y in H124?! Much Ado About (Almost) Nothing

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Atour Lifestyle Holdings / Equity Bottom-Up

<ul>
<li>Atour (ATAT) reported C2Q24 revenue 2.2%/8.3% higher than our est./cons., and non-GAAP NI 6.8%/12.3% higher than our est./ cons, driven by stronger hotel supply chain sales and better retail efficiency.</li>
<li>We keep 2024 revenue growth estimate at 53% YoY vs. the uplift company guidance at 48%-52% YoY. Potential catalysts are stronger off-season travel,old hotel renovation scheme, and new brand launch.</li>
<li>We keep TP unchanged at US$36/ADS and maintain the BUY rating.</li>
</ul>


Atour (ATAT) reported C2Q24 revenue 2.2%/8.3% higher than our est./cons., and non-GAAP NI 6.8%/12.3% higher than our est./ cons, driven by stronger hotel supply chain sales and better retail efficiency.
We keep 2024 revenue growth estimate at 53% YoY vs. the uplift company guidance at 48%-52% YoY. Potential catalysts are stronger off-season travel,old hotel renovation scheme, and new brand launch.
We keep TP unchanged at US$36/ADS and maintain the BUY rating.


[Atour (ATAT US, BUY, TP US$36) Review]: Retail Business Bigger and Longer than Market Thinks

<ul>
<li>Despite slower top-line growth, Trip.com posted firmer margins in Q224</li>
<li>Cash Operating Expenses as a % of Net Revenue fell by around -250 bps Y/Y</li>
<li>Post-Covid, Trip.com has less competition; BUY with target of US$58 per ADS</li>
</ul>


Despite slower top-line growth, Trip.com posted firmer margins in Q224
Cash Operating Expenses as a % of Net Revenue fell by around -250 bps Y/Y
Post-Covid, Trip.com has less competition; BUY with target of US$58 per ADS


Trip.com Q224: Slower Growth | But Higher Margins | Competition Has Eased | BUY with US$58 Target

<ul>
<li>Outbound travel recovery remains sluggish, activity still far below 2019 levels</li>
<li>Domestic activity up 5% Y/Y in June, now well above pre-Covid levels</li>
<li>Trip.com gaining share during extended recovery, trades on 14x PER, BUY</li>
</ul>


Outbound travel recovery remains sluggish, activity still far below 2019 levels
Domestic activity up 5% Y/Y in June, now well above pre-Covid levels
Trip.com gaining share during extended recovery, trades on 14x PER, BUY


Monthly Chinese Tourism Tracker | Outbound Recovery Sluggish, but Trip.com Too Cheap | (July 2024)

<ul>
<li>Growth of outbound Chinese travel demand strong in May as HK, Macau slow</li>
<li>Domestic travel demand also showed solid growth in May and early June</li>
<li>Trip.com appears reasonably cheap now that it's dipped below US$50, BUY</li>
</ul>


Growth of outbound Chinese travel demand strong in May as HK, Macau slow
Domestic travel demand also showed solid growth in May and early June
Trip.com appears reasonably cheap now that it's dipped below US$50, BUY


Monthly Chinese Tourism Tracker | Outbound Recovery Expands | Domestic Solid Too | (June 2024)

China

Huazhu Group Limited operates a hotel operator and franchisor. The Company provides hotel leasing, directly hotel operation, and co-development services. Huazhu Group mainly conducts businesses in China.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
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Huazhu Group (HTHT US)

Chinese Inbound Foreign Tourist Arrivals Up 153% Y/Y in H124?! Much Ado About (Almost) Nothing

Yes, foreign inbound travel to China has shown strong growth so far in 2024, but the numbers are rising from a very low base, and ultimately matter...

Tracking Traffic

[Atour (ATAT US, BUY, TP US$36) Review]: Retail Business Bigger and Longer than Market Thinks

Atour (ATAT) beats revenue and non-GAAP NI estimates, driven by hotel supply chain sales and retail efficiency. Potential growth catalysts include...

Blue Lotus Research Institute

Trip.com Q224: Slower Growth | But Higher Margins | Competition Has Eased | BUY with US$58 Target

Trip.com posted slower revenue growth in Q2, but margins improved as the company expertly managed operating expenses. Post-Covid, Trip.com's...

Tracking Traffic

Monthly Chinese Tourism Tracker | Outbound Recovery Sluggish, but Trip.com Too Cheap | (July 2024)

Outbound Chinese travel demand continued its sluggish recovery in June, but remains far below 2019 levels. Tourism-linked shares have performed...

Tracking Traffic

Monthly Chinese Tourism Tracker | Outbound Recovery Expands | Domestic Solid Too | (June 2024)

May outbound Chinese travel demand was strong, apparently driven by tourists shifting flying outside the Asian region. Domestic demand growth also...

Tracking Traffic

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Chinese Inbound Foreign Tourist Arrivals Up 153% Y/Y in H124?! Much Ado About (Almost) Nothing

Yes, foreign inbound travel to China has shown strong growth so far in 2024, but the numbers are rising from a very low base, and ultimately matter...

Tracking Traffic

[Atour (ATAT US, BUY, TP US$36) Review]: Retail Business Bigger and Longer than Market Thinks

​Atour (ATAT) beats revenue and non-GAAP NI estimates, driven by hotel supply chain sales and retail efficiency. Potential growth catalysts include...

Blue Lotus Research Institute

Trip.com Q224: Slower Growth | But Higher Margins | Competition Has Eased | BUY with US$58 Target

Trip.com posted slower revenue growth in Q2, but margins improved as the company expertly managed operating expenses. Post-Covid, Trip.com's...

Tracking Traffic

Monthly Chinese Tourism Tracker | Outbound Recovery Sluggish, but Trip.com Too Cheap | (July 2024)

Outbound Chinese travel demand continued its sluggish recovery in June, but remains far below 2019 levels. Tourism-linked shares have performed...

Tracking Traffic

Monthly Chinese Tourism Tracker | Outbound Recovery Expands | Domestic Solid Too | (June 2024)

May outbound Chinese travel demand was strong, apparently driven by tourists shifting flying outside the Asian region. Domestic demand growth also...

Tracking Traffic

Atour (ATAT) beats revenue and non-GAAP NI estimates, driven by hotel supply chain sales and retail efficiency. Potential growth catalysts include...