The company achieved revenue of 44.56 billion yuan for the full year of 2023, up 122.2% year on year, and a recovery of 124.8% over the same period in '19. 23Q4 achieved revenue of 10.34 billion yuan/105.5% year-on-year increase, recovering to 123.9% in 2019, and 23Q4 achieved revenue of 39/41/7/634 billion yuan, +131%/+86%/+329%/+129% year-on-year, 132%/118%/88%/170% in 2019. Strong growth in travel demand in Q4 drove significant business growth.
23Q4NON-GAAP operating profit of RMB 2,647 billion: In terms of performance, adjusted EBITDA margin was RMB 2.9 billion, adjusted EBITDA margin was 28% (22Q4/23Q3:6%/34%); adjusted operating profit of RMB 2,647 million, adjusted operating margin of 26% (22Q4/23Q3:1%/32%); adjusted net profit of RMB 2,675 million, adjusted net profit margin of 26% (22Q4/23Q3:10%/36%). In terms of gross profit and expenses, the Group's gross margin was 80% (22Q4/23Q3:76%/82%), NON-GAAP service development/sales marketing/administrative expenses were 27.01/22.94/673 million yuan, and the corresponding expense ratio was 26%/22%/7%, up -12/0/ -7pct year-on-year, compared with the development/sales/management expense ratio for the whole of '19 (27%/26%/9.2%). The development/sales/management expenses ratio decreased by 1 pct/4 pct/2pct respectively in the fourth quarter, and operating leverage was still there Gradual release.
Business performance: 1) Hotels, thanks to the active efforts of snow and ice tours and cultural tourism in various regions, the traditional off-season travel market remained hot in the fourth quarter, and domestic hotel reservations increased by more than 130% year-on-year in the fourth quarter. 2) Overseas, outbound hotel bookings and air ticket reservations have all returned to over 80% of pre-COVID-19 levels, while the industry's international air passenger traffic rebounded 60% during the same period, faster than 20% of the industry. Total bookings on the company's global OTA platform increased by more than 70% year-on-year in the fourth quarter, and outbound travel still has the potential for strong growth.
Profit forecast and investment suggestions: The company is a leader in the domestic OTA industry, the release of national travel demand after the epidemic, and the company's operating leverage is showing. The company's revenue for 24-26 is estimated to be 525/599/68.3 billion yuan, +18% YoY/+18%, +18% YoY, net profit to mother of 117/136/16 billion yuan, 14%/17%/18% YoY. /14%/14%, optimistic about the resilience of recovery and gave it a “recommended” rating.
Risk warning: the risk of macroeconomic fluctuations, the risk that the recovery of international air capacity falls short of expectations, and the risk that the recovery of consumption capacity falls short of expectations.