Zeev's Turnips Patch-No Politics (ZEEV)

[Fred Langford]

Looking at CTRP (Chinese Expedia) nearing IPO opening price.
Upgraded April 30 by Merrill from hold to buy.

Highlights for the first quarter of 2004:

-- Net revenues grew by 101% year-on-year to RMB64.3 million (US$7.8
million). It decreased by 5% quarter-on-quarter due to seasonality.
-- Operating income grew by 156% year-on-year and 15% quarter-on-quarter
to RMB25.6 million (US$3.1 million), benefiting from our scalable and
profitable business model.
-- Net income grew by 222% year-on-year to RMB21.7 million (US$2.6
million). The diluted earnings per ADS were RMB1.36 (US$0.16), against
our original guidance of between RMB0.92 (US$0.11) and RMB0.96
(US$0.12) per ADS. The diluted earnings per ordinary share were
RMB0.68 (US$0.08) for the quarter.
-- Gross margin remained at 85%, operating margin increased to 40% and
net margin was 34%.


Fred