Jiaoyin International Maintains “Buy” Rating for TONGCHENGTRAVEL (00780) with Target Price of HKD 25.5

Stock News
Oct 24

Jiaoyin International has released a research report forecasting that TONGCHENGTRAVEL (00780) will meet previous expectations for its Q3 OTA performance. The firm expects the company’s overall revenue and profit in Q3 to grow by 9% and 13% year-over-year, respectively, indicating stable growth. The predictions for 2025-2027 have been slightly adjusted, while the target price remains at HKD 25.5 with a “buy” rating. The firm anticipates that TONGCHENGTRAVEL's total revenue in Q3 will grow by 9% year-over-year, including a 15% increase in core OTA revenue, reaching RMB 4.6 billion. For Q3, revenue from accommodation and transportation businesses is expected to increase by 14% and 10% year-over-year, respectively. The growth in accommodation revenue is primarily driven by the increase in nights booked, with ADR also achieving year-over-year growth. The anticipated adjusted net profit stands at RMB 1.03 billion, reflecting a 13% increase year-over-year, with a corresponding net profit margin of 18.9%.

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