A research report from CMB International states that TONGCHENGTRAVEL (00780) reported fourth-quarter revenue of RMB 4.8 billion, a year-on-year increase of 14.2%, which exceeded expectations. Adjusted net profit was RMB 780 million, rising 18% year-on-year and also surpassing forecasts. Revenue and operating profit margin from the core online travel agency (OTA) business were in line with the institution's projections. The firm has increased the stock's target price to HK$25.5 while maintaining a "Buy" rating.

The report highlights that, based on this earnings performance, the company's gross margin expanded more than anticipated, driven by an increased contribution from the high-margin core OTA business. Consequently, CMB International has raised its non-GAAP net profit forecasts for the current and next year by 5%. Supported by resilient travel demand, the institution projects that the company's core OTA business operating profit will grow 15% year-on-year in 2026.