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 expected revenue and profit growth for Tongcheng Travel Holdings Limited. The company is anticipated to achieve a revenue of RMB4.6 billion for the second quarter of 2025, marking a 9.3% year-over-year increase. This growth is primarily driven by a stronger-than-expected performance in the accommodation reservation sector, despite a slower growth in transportation ticketing services.
Furthermore, the analyst has adjusted the non-GAAP net profit forecast upwards by 1.3% for 2025, reflecting an anticipated improvement in profit margins due to optimized sales and marketing expenditures. Despite a slight reduction in the revenue forecast, the company is expected to maintain a solid growth trajectory with a 10% increase in revenue and a 20% rise in non-GAAP net profit for 2025. The target price remains at HK$24.0, supported by a DCF-based valuation, reinforcing the Buy recommendation.