Analyst Saiyi He of CMB International Securities reiterated a Buy rating on Tongcheng Travel Holdings Limited (0780 – Research Report), retaining the price target of HK$24.00.
Saiyi He has given his Buy rating due to a combination of factors that highlight Tongcheng Travel Holdings Limited’s strong growth potential. The company’s projected revenue and profit for the first quarter of 2025 are expected to align with market expectations, showing a year-over-year increase. This growth is primarily driven by robust domestic demand, which remains largely unaffected by external geopolitical and tariff-related issues. Additionally, the company’s ability to enhance operational efficiency through improved marketing strategies and user subsidy optimizations further supports its positive outlook.
Saiyi He also notes the potential turnaround in Tongcheng’s international business, which is anticipated to move from a loss-making phase to profitability. The company’s financial forecasts for 2025 to 2027 remain unchanged, with a target price of HK$24.0 per share based on a discounted cash flow valuation. Despite some challenges in the tourism sector, particularly with outbound travel for older customers, the overall travel demand remains resilient, as evidenced by recent data from national festivals. These factors collectively contribute to the Buy rating for Tongcheng Travel Holdings Limited.