As growth in the U.S. looks increasingly shaky and investors try to figure out which listed Chinese companies tell the truth, well-established names like Baidu (Nasdaq:BIDU) and Ctrip (Nasdaq:CTRP) seem to be getting a little extra love. The question, though, is whether Ctrip's valuation already more than credits the company for its likely impressive future growth in China's travel industry.
Some Reasons for Concern in Q2
Top line revenue for Ctrip was a solid 20% and in line with analyst expectations. Hotel booking is still the largest individual revenue component and grew about 16%. Air ticketing was weaker, though, as lower commissions offset higher volume, and growth came in at 13%. Packaged tours continues to be a growth driver, and Ctrip saw 62% higher revenue from this category in the second quarter.
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