Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



China's Many Routes to Riches

Travel portal eLong (Nasdaq: LONG  ) -- a Beijing-based subsidiary of Expedia (Nasdaq: EXPE  ) -- posted healthy quarterly results yesterday. Revenue rose 30% to $15.7 million. Net income nearly tripled to $0.04 per ADS.

The growth isn't all organic, since eLong has been actively snapping up smaller Chinese travel sites lately. The growth spurt also pales in comparison to market leader's (Nasdaq: CTRP  ) 46% top-line improvement during the same quarter. However, growth is starting to accelerate at eLong, which is certainly encouraging.

The market may have soured lately on many Chinese equities, but the travel sector continues to hold promise.

Home Inns & Hotels (Nasdaq: HMIN  ) posted a quarterly profit of $0.15 a share earlier this month, more than double what Mr. Market expected. It also managed to boost its RevPAR (revenue per available room -- a popular metric in gauging hoteliers), thanks to higher occupancy levels and higher overnight rates.

Rival budget lodging chain 7 Days Group Holdings (NYSE: SVN  ) also came through with a niche-affirming report this week, wringing out a small profit on a robust 26% revenue gain.

Even the otherwise sleepy IPO market delivered a hot Chinese travel play when China Lodging Group (Nasdaq: HTHT  ) went public two months ago at $12.25. Shares closed at $14.40 yesterday, 18% higher in a time when the market in general has been a bit dicey.

Risk-averse investors that normally don't tread into Chinese small caps may want to consider eLong's balance sheet. The portal is carrying $139.5 million -- or nearly $5.50 per ADS -- in cash and cash equivalents.

You'll find growth and value in many Chinese travel plays that trade on stateside exchanges. You simply need a healthy sense of exploration to find them. Isn't that what travel is all about?

Have you ever traveled to China? Share your experiences in the comment box below. International is a Motley Fool Hidden Gems selection. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy   

Longtime Fool contributor Rick Munarriz has been booking travel online since the 1990s but he does not own shares in any of the companies in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1189703, ~/Articles/ArticleHandler.aspx, 10/23/2016 8:19:15 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
LONG.DL $0.00 Down +0.00 +0.00%
eLong CAPS Rating: No stars
CTRP $47.61 Up +0.36 +0.76% Internat… CAPS Rating: ****
EXPE $127.58 Up +2.92 +2.34%
Expedia CAPS Rating: ***
HMIN.DL $35.71 Down +0.00 +0.00%
Home Inns and Hote… CAPS Rating: **
SVN.DL $0.00 Down +0.00 +0.00%
7 Days Group Holdi… CAPS Rating: No stars