What is the share price of Ctrip?

On September 30th, 20 13, I bought Ctrip at the closing price of $ 29. 18. I have held it until now, and the yield is almost zero.

Just because the share price hasn't risen doesn't mean Ctrip is a bad company. Because no matter from which angle, Ctrip almost meets the definition of a good company by value investors.

In 20 18, the online travel market in China was1481200 million, and Ctrip was the absolute leader in this market. Meanwhile, from 20 13 to 20 18, Ctrip's non-GAAP net profit increased from143,600 yuan to 43120,000 yuan, with a compound annual growth rate of 24.6%.

Looking at the whole Internet field, the ability of Ctrip management is not top-notch, at least it is excellent. From PC era to mobile Internet, Ctrip has crossed one opponent after another, Tongcheng, Qunar, mango net, Tuniu and Yilong. Even if it is as strong as Wang Xing, it has not shaken Ctrip's absolute advantage in high-end hotels.

Seeing this, you may ask, why is the share price of such a seemingly excellent company still standing after six years?

The reason is the expansion of equity. From February 28th, 20 14 to February 28th, 20 19, the share capital of Ctrip increased from 329 1 10,000 shares to 69.48 million shares, increasing by11%. However, the additional share capital did not bring matching performance growth, which directly led to the dilution of Ctrip shareholders' rights and interests.