Analyst Saiyi He of CMB International Securities maintained a Buy rating on Tongcheng Travel Holdings Limited, retaining the price target of HK$24.00.
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Saiyi He has given his Buy rating due to a combination of factors including Tongcheng Travel Holdings Limited’s strong financial performance in the second quarter of 2025. The company reported a 10% year-over-year increase in total revenue, surpassing both CMB International’s and Bloomberg’s forecasts. Additionally, the adjusted net profit rose by 18% year-over-year, which was higher than expected, indicating effective operational leverage in their core online travel agency (OTA) business.
Moreover, Saiyi He notes the expansion in operating profit margins for the core OTA business, which reached 26.7% in the second quarter of 2025, exceeding expectations. Looking ahead, the analyst anticipates stable revenue growth and operating profit margins, supported by robust growth in accommodation reservation services and other business segments. The positive outlook is further reinforced by the company’s strategic marketing efforts and the expected continuation of solid earnings growth in the upcoming quarters.
In another report released today, Macquarie also maintained a Buy rating on the stock with a HK$24.20 price target.