24Q2 achieved revenue of 12.788 billion yuan/yoy +14%, compared with 19Q2 (+46% compared to 19Q1), of which 24Q2 achieved revenue of 51.36/4.871/1.025/0.633 billion yuan, +20%/+1%/+42%/+10%/+105% over the same period in 2019. 24Q2 The company's domestic and foreign business continued to grow. 1) Hotel reservations on the Chinese site increased by about 20% year on year; 2) Outbound hotel and air ticket reservations have fully recovered to 100% in '19, significantly exceeding the industry average international flight recovery rate of more than 70%; 3) The total revenue of the company's international OTA platform increased by about 70% year on year.
24Q2 achieved non-GAAP operating profit of 4.229 billion yuan/yoy +22%, compared with 19Q1 +145%; non-GAAP operating margin of 33%, compared with 19Q2 +13.3 pct. 24Q2 non-GAAP net profit 4.985 billion yuan/yoy +45%, compared with 19Q1 +275%; non-GAAP net profit margin 39%, compared to 19Q2+23.8pct.
24Q2 Group gross margin was 82%, non-GAAP service development/sales marketing/administrative expenses were 2.671/2.78/0.78 billion yuan, and the corresponding expense ratio was 21%/22%/6%, -3.3/+1.2/-0.4pct, compared with 27%/26%/7% for the full year of '19.
Looking ahead to 24Q3, domestic travel demand will continue. Based on summer performance, revenue for the third quarter is expected to increase by double digits. As of the summer season, 1) domestic hotel reservations have increased by double digits year on year, with ADR falling year on year (expected to ease in Q4); 2) international wine reservations exceeded the same period in '23, up 10% to 20% from '19, ticket prices were 5% to 10% higher than in '19, with a slight increase over the previous month; 3) Trip.com maintained strong double-digit growth in the middle and high-end market.
Profit forecast and investment advice: The company is a leader in the domestic OTA industry. It is optimistic about the company's overseas business growth and profit increase brought about by domestic cross-sales. The company's 24-26 revenue is expected to be 52.5/61.9/72.3 billion yuan, +18%/+17%, net profit to mother 15/17.3/19.8 billion yuan, +51%/15%, and non-Gaap net profit to mother is 17/19.1/21.6 billion yuan, respectively. +30%/12%/13%, optimistic about recovery elasticity, giving 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.