In a report released today, Saiyi He from CMB International Securities maintained a Buy rating on Tongcheng Travel Holdings Limited, with a price target of HK$25.40.
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Saiyi He has given his Buy rating due to a combination of factors including Tongcheng Travel’s strong financial performance and promising growth outlook. The company reported solid third-quarter results for 2025, with total revenue increasing by 10.4% year-over-year, surpassing both CMB International’s and Bloomberg’s expectations. This growth was primarily driven by the core online travel agency (OTA) business, which saw a 14.9% year-over-year revenue increase, particularly in accommodation reservation services.
Furthermore, Saiyi He anticipates continued robust revenue growth in the core OTA segment for the fourth quarter of 2025, despite a projected decline in tourism revenue. The consolidation of Wanda Hotel Management is expected to contribute additional revenue, enhancing the company’s overall financial outlook. The operating profit margin of the core OTA business also improved, indicating effective operational leverage. These factors, combined with a positive forecast for future revenue and profit growth, underpin the Buy rating.
He covers the Communication Services sector, focusing on stocks such as Baidu, Tencent Holdings , and Iqiyi. According to TipRanks, He has an average return of 13.1% and a 56.29% success rate on recommended stocks.
In another report released today, DBS also maintained a Buy rating on the stock with a HK$26.50 price target.