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Tongcheng Travel Holdings Limited (HK:0780)
:0780

Tongcheng Travel Holdings Limited (0780) AI Stock Analysis

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HK

Tongcheng Travel Holdings Limited

(0780)

Rating:76Outperform
Price Target:
Tongcheng Travel Holdings Limited exhibits strong financial performance with robust growth and profitability indicators. The technical analysis shows positive momentum, although caution is advised due to potential overbought conditions. The valuation indicates the stock is fairly valued, with a focus on growth rather than income. Despite the positive outlook, historical fluctuations and moderate dividend yield suggest a balanced investment perspective.
Positive Factors
Accommodation Reservation Performance
For 1Q25, healthy revenue growth is expected, driven by strong performance in accommodation reservation business, supported by hotel room night growth and increased hotel take rate.
Earnings Growth Outlook
Analyst reiterates a positive view on Tongcheng Travel given its robust earnings growth outlook.
Operating Efficiency
The operating profit margin of the core OTA business expanded significantly to 29.2%, indicating improved operational efficiency.
Revenue Growth
Tongcheng Travel's core OTA business revenue growth was slightly ahead of consensus, driven by better-than-expected revenue growth in transportation ticketing business and Others.
Negative Factors
Elderly Tourism Recovery
Elder customers' outbound tourism in popular Southeast Asia destinations is taking longer to recover than expected.
Tourism Business Recovery
The slower-than-expected recovery in the Tourism business partly offset the revenue gains from the core OTA business.

Tongcheng Travel Holdings Limited (0780) vs. iShares MSCI Hong Kong ETF (EWH)

Tongcheng Travel Holdings Limited Business Overview & Revenue Model

Company DescriptionTongcheng Travel Holdings Limited (0780) is a leading online travel service provider in China, offering a comprehensive range of travel-related services. The company primarily operates in sectors such as transportation ticketing, accommodation reservation, and various travel-related services. It provides users with access to a diverse selection of travel products, including flights, trains, hotels, and vacation packages, through its online platforms and mobile applications.
How the Company Makes MoneyTongcheng Travel Holdings Limited generates revenue primarily through commissions and service fees from its travel service offerings. The company earns commissions on the sale of transportation tickets, such as flights and train tickets, and from hotel bookings made through its platform. Additionally, it charges service fees for providing value-added services to customers, such as travel insurance and car rentals. The company also benefits from partnerships with various transportation providers, hotels, and travel agencies, which enhance its product offerings and customer reach. Tongcheng Travel's strategic alliances and broad network help it maintain a competitive edge in the online travel market, contributing to its revenue growth.

Tongcheng Travel Holdings Limited Financial Statement Overview

Summary
Tongcheng Travel Holdings Limited demonstrates a strong financial position with robust revenue growth and profitability metrics. The balance sheet is stable with a healthy equity buffer and manageable debt levels. Cash flow generation is solid, though there are some variations in growth. The company is well-positioned for continued growth, but historical fluctuations in certain metrics warrant careful monitoring.
Income Statement
85
Very Positive
Tongcheng Travel Holdings Limited has shown strong revenue growth over the years, with a significant jump from 2023 to 2024. The Gross Profit Margin and Net Profit Margin are robust, indicating efficient cost management and profitability. The EBIT and EBITDA margins have also improved, showcasing strong operational performance. However, there was a period of negative EBIT in 2022, which suggests some historical volatility.
Balance Sheet
80
Positive
The company maintains a healthy balance sheet with a solid equity base, evidenced by a strong Equity Ratio. The Debt-to-Equity Ratio is manageable, showing prudent leverage levels. The Return on Equity is impressive, reflecting effective use of equity to generate profits. The consistent increase in Stockholders' Equity suggests financial stability and growth potential.
Cash Flow
78
Positive
Operating Cash Flow remains strong and consistently positive, indicating good cash generation from operations. Free Cash Flow is positive and shows growth, supporting reinvestment and potential shareholder returns. However, there have been fluctuations in Free Cash Flow growth rates, suggesting some variability in cash flow management.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
17.34B11.90B6.58B7.54B5.93B
Gross Profit
11.11B8.74B4.78B5.65B4.24B
EBIT
2.42B1.87B-169.35M895.29M381.92M
EBITDA
3.52B2.91B839.95M1.56B1.01B
Net Income Common Stockholders
1.97B1.55B-163.57M723.40M327.59M
Balance SheetCash, Cash Equivalents and Short-Term Investments
11.17B9.41B6.71B5.39B6.72B
Total Assets
37.78B31.72B6.64B21.51B19.11B
Total Debt
5.01B3.01B2.41B329.39M395.57M
Net Debt
-3.01B-2.18B-1.13B-1.72B-1.41B
Total Liabilities
16.81B13.17B6.64B6.25B5.10B
Stockholders Equity
20.00B17.70B15.73B15.22B14.01B
Cash FlowFree Cash Flow
2.57B3.03B-230.70M1.53B-30.68M
Operating Cash Flow
2.97B4.00B302.31M1.84B135.52M
Investing Cash Flow
-834.26M-1.76B-397.03M-1.56B-772.56M
Financing Cash Flow
678.79M-592.23M1.54B-20.42M176.54M

Tongcheng Travel Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price21.25
Price Trends
50DMA
20.78
Positive
100DMA
19.64
Positive
200DMA
18.36
Positive
Market Momentum
MACD
0.40
Negative
RSI
56.69
Neutral
STOCH
61.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0780, the sentiment is Positive. The current price of 21.25 is above the 20-day moving average (MA) of 21.17, above the 50-day MA of 20.78, and above the 200-day MA of 18.36, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 56.69 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0780.

Tongcheng Travel Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
HK$2.26T15.9013.02%0.84%3.92%27.80%
80
Outperform
HK$410.79B8.1819.79%3.02%7.67%90.63%
80
Outperform
$180.91B8.0824.35%1.23%
78
Outperform
$4.67T21.9621.25%0.88%8.88%54.27%
76
Outperform
$882.26B19.6923.82%19.20%156.71%
76
Outperform
HK$50.24B20.1611.72%0.70%34.16%40.10%
62
Neutral
$6.88B11.322.95%3.87%2.70%-24.57%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0780
Tongcheng Travel Holdings Limited
21.25
3.93
22.69%
HK:9988
Alibaba Group Holding Ltd.
116.60
41.77
55.82%
HK:9618
JD.com, Inc. Class A
128.70
15.93
14.13%
HK:3690
Meituan
141.70
26.40
22.90%
HK:0175
Geely Automobile Holdings
17.94
8.60
92.04%
HK:0700
Tencent Holdings
515.00
144.44
38.98%

Tongcheng Travel Holdings Limited Corporate Events

Tongcheng Travel Holdings Sets Agenda for 2025 Annual General Meeting
May 29, 2025

Tongcheng Travel Holdings Limited announced its upcoming annual general meeting scheduled for June 26, 2025, in Suzhou, China. Key agenda items include the adoption of the 2024 financial statements, re-election of directors, re-appointment of auditors, and approval of a final dividend of HKD0.18 per share. These resolutions aim to strengthen the company’s governance and financial position, potentially impacting its market standing and shareholder value.

The most recent analyst rating on (HK:0780) stock is a Buy with a HK$20.00 price target. To see the full list of analyst forecasts on Tongcheng Travel Holdings Limited stock, see the HK:0780 Stock Forecast page.

Tongcheng Travel Reports Strong Q1 2025 Financial Results
May 23, 2025

Tongcheng Travel Holdings Limited reported a significant financial performance for the first quarter of 2025, with a 13.2% increase in revenue to RMB4,377.4 million compared to the same period in 2024. The company also saw a substantial rise in adjusted EBITDA and net profit, showcasing a strong operational performance. The growth in average monthly paying users and accumulated number of travelers served indicates a robust market presence and increased consumer engagement. These results highlight Tongcheng Travel’s strengthened position in the competitive online travel agency sector, potentially benefiting stakeholders through improved profitability and market expansion.

The most recent analyst rating on (HK:0780) stock is a Buy with a HK$20.00 price target. To see the full list of analyst forecasts on Tongcheng Travel Holdings Limited stock, see the HK:0780 Stock Forecast page.

Tongcheng Travel Enhances Governance with New Nomination Committee
May 23, 2025

Tongcheng Travel Holdings Limited has established a Nomination Committee as part of its corporate governance framework. This move aims to enhance the company’s governance structure by ensuring a systematic and transparent process for nominating directors and senior management. The establishment of this committee is expected to strengthen the company’s operational oversight and align with the listing rules of the Hong Kong Stock Exchange, potentially impacting its market positioning positively.

The most recent analyst rating on (HK:0780) stock is a Buy with a HK$23.70 price target. To see the full list of analyst forecasts on Tongcheng Travel Holdings Limited stock, see the HK:0780 Stock Forecast page.

Tongcheng Travel to Review Q1 Financial Results
May 6, 2025

Tongcheng Travel Holdings Limited has announced a board meeting scheduled for May 23, 2025, to approve and publish the unaudited first quarterly results for the period ending March 31, 2025. This meeting is significant as it will provide insights into the company’s financial performance and could impact its market positioning and stakeholder interests.

Tongcheng Travel Acquires 100% Equity in Target Company
Apr 17, 2025

Tongcheng Travel Holdings Limited announced the acquisition of 100% equity interest in a target company for approximately RMB2,497.3 million. This acquisition will allow Tongcheng to consolidate the financial results of the target group into its financial statements, enhancing its operational capabilities in hotel management and consultancy services. The transaction is considered a discloseable transaction under the Hong Kong Listing Rules, and its completion is subject to certain conditions.

Tongcheng Travel Announces Final Dividend for 2024
Mar 20, 2025

Tongcheng Travel Holdings Limited announced a final ordinary cash dividend of HKD 0.18 per share for the financial year ending December 31, 2024. This decision reflects the company’s financial health and commitment to returning value to shareholders, with the payment scheduled for July 15, 2025. The announcement may positively impact investor sentiment and reinforce the company’s stable position in the travel industry.

Tongcheng Travel Holdings Reports Robust Financial Growth for 2024
Mar 20, 2025

Tongcheng Travel Holdings Limited reported a significant financial growth for the year ended December 31, 2024, with a 34.8% increase in revenue to RMB4,237.6 million in the fourth quarter compared to the same period in 2023. The company’s adjusted EBITDA and net profit also saw substantial increases of 39.4% and 36.8%, respectively, indicating strong operational performance. The company has updated its segment reporting structure to better align with its business strategies and resource allocation, reflecting its focus on core OTA and tourism services.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.