Tongcheng Travel Holdings Limited (0780) AI Stock Analysis

• Market Cap: HK$48.08B
• Dividend Yield: 0.72%
• Average Volume (3M): 18.53M
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.99
• Revenue Growth: 43.26%
• EPS Growth: 23.06%
• Country: HK
• Employees: 10,141
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Travel Services
• EPS (TTM): 0.31
• Shares Outstanding: 2,334,028,000
• 10 Day Avg. Volume: 14,578,446
• 30 Day Avg. Volume: 18,529,279
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$24.70
• Price Target Upside: 21.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

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

Earnings Growth

Analyst reiterates a positive view on Tongcheng Travel given its robust earnings growth outlook.

Operating Efficiency

The operating profit margin of core OTA businesses improved to 28.4% in 4Q24, driven by optimization of marketing strategies.

Revenue Performance

Tongcheng Travel reported 4Q24 results with total revenue up 35% YoY, 5% better than Bloomberg consensus estimates, due to strong performance in accommodation reservation and Tourism business.

Negative Factors

International Business Recovery

Elder customers' outbound tourism in popular Southeast Asia destinations is taking longer to recover than expected.

Tongcheng Travel Holdings Limited Business Overview & Revenue Model

Company Description

Tongcheng 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 Money

Tongcheng 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

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

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

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 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
11.90B	6.58B	7.54B	5.93B	7.39B
	Gross Profit
8.74B	4.78B	5.65B	4.24B	5.08B
	EBIT
1.87B	-169.35M	895.29M	381.92M	859.53M
	EBITDA
2.91B	839.95M	1.56B	1.01B	1.39B
	Net Income Common Stockholders
1.55B	-163.57M	723.40M	327.59M	688.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.41B	6.71B	5.39B	6.72B	6.81B
	Total Assets
31.72B	6.64B	21.51B	19.11B	19.48B
	Total Debt
3.01B	2.41B	329.39M	395.57M	263.70M
	Net Debt
-2.18B	-1.13B	-1.72B	-1.41B	-2.01B
	Total Liabilities
13.17B	6.64B	6.25B	5.10B	6.33B
	Stockholders Equity
17.70B	15.73B	15.22B	14.01B	13.16B
Cash Flow		Free Cash Flow
3.03B	-230.70M	1.53B	-30.68M	1.39B
	Operating Cash Flow
4.00B	302.31M	1.84B	135.52M	1.70B
	Investing Cash Flow
-1.76B	-397.03M	-1.56B	-772.56M	-2.96B
	Financing Cash Flow
-592.23M	1.54B	-20.42M	176.54M	372.76M

Tongcheng Travel Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 20.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0780, the sentiment is Neutral. The current price of 20.35 is below the 20-day moving average (MA) of 21.05, above the 50-day MA of 19.95, and above the 200-day MA of 17.72, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 48.17 is Neutral, neither overbought nor oversold. The STOCH value of 37.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0780.

Tongcheng Travel Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9988	81 Outperform	HK$2.36T	17.61	11.98%	0.80%	3.92%	27.80%
0700	77 Outperform	$4.50T	21.49	21.80%	0.68%	6.35%	68.85%
0780	76 Outperform	HK$48.08B	22.37	10.51%	0.72%	43.26%	23.06%
0175	75 Outperform	$168.71B	9.39		1.24%	―	―
9618	74 Outperform	HK$377.09B	9.06	17.58%	2.95%	4.83%	76.96%
3690	70 Outperform	$846.18B	21.76	22.27%	―	19.90%	157.52%
Sector *	61 Neutral	$6.66B	11.77	3.06%	3.96%	2.60%	-21.54%

Tongcheng Travel Holdings Limited Corporate Events

Tongcheng Travel to Review Q1 Financial Results

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

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

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

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.