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Tongcheng Travel Holdings Limited (HK:0780)
:0780
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Tongcheng Travel Holdings Limited
(0780)
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Rating:76Outperform
Price Target:
HK$24.00
▲(10.29% Upside)
Tongcheng Travel Holdings Limited's strong financial performance and positive earnings call sentiment are the most significant factors contributing to the score. While technical indicators suggest short-term bearish trends, the company's robust growth metrics and strategic initiatives provide a solid foundation for long-term potential.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability and expansion.
Cash Generation
Robust cash flow growth enhances financial flexibility, allowing for reinvestment, debt reduction, and potential shareholder returns.
Strategic Acquisition
The acquisition strengthens the hotel management segment, potentially accelerating growth and enhancing competitive positioning.
Negative Factors
Tourism Revenue Decline
A decline in tourism revenue could indicate challenges in market demand or strategic execution, impacting overall growth potential.
Increased Marketing Expenses
Rising marketing costs may pressure margins and indicate a need for higher spending to maintain market position, affecting profitability.
Debt Levels
While manageable, maintaining or reducing debt levels is crucial to ensure financial stability and avoid potential liquidity issues.
Tongcheng Travel Holdings Limited (0780) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$49.70B
Dividend Yield0.83%
Average Volume (3M)7.74M
Price to Earnings (P/E)18.2
Beta (1Y)0.98
Revenue Growth15.33%
EPS Growth34.99%
CountryHK
Employees10,141
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Services
Share Statistics
EPS (TTM)0.50
Shares Outstanding2,348,830,800
10 Day Avg. Volume6,294,793
30 Day Avg. Volume7,742,859
Financial Highlights & Ratios
PEG Ratio0.71
Price to Book (P/B)1.96
Price to Sales (P/S)2.26
P/FCF Ratio15.29
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$27.15Price Target Upside24.77% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Tongcheng Travel Holdings Limited Business Overview & Revenue Model
Company DescriptionTongcheng Travel Holdings Limited, an investment holding company, provides travel related services in the People's Republic of China. It offers transportation ticketing, accommodation reservation, and attraction ticketing services, as well as various ancillary value-added products and services. The company also provides online advertising services, technology consulting and services, and insurance agency services; and engages in call center and other businesses. Tongcheng Travel Holdings Limited provides travel products and services through its tencent-based online platforms, mobile apps, and websites. The company was formerly known as Tongcheng-Elong Holdings Limited and changed its name to Tongcheng Travel Holdings Limited in November 2021. Tongcheng Travel Holdings Limited was founded in 1999 and is headquartered in Suzhou, the People's Republic of China.
How the Company Makes MoneyTongcheng Travel generates revenue through various channels, primarily by charging commissions on bookings made through its platform for hotels, flights, and other travel-related services. The company earns a significant portion of its income from transaction fees associated with the sale of travel products. Additionally, Tongcheng Travel offers advertising services to vendors on its platform, further diversifying its revenue streams. Strategic partnerships with airlines, hotel chains, and local travel service providers also contribute to its earnings by enhancing product offerings and driving user traffic. The company benefits from a growing online travel market in China, capitalizing on increasing consumer demand for convenient and efficient travel solutions.
Tongcheng Travel Holdings Limited Earnings Call Summary
Earnings Call Date:Nov 25, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 24, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong performance with significant growth in paying users, accommodation business, and international air ticketing, alongside successful acquisition and ESG achievements. However, the decline in tourism business revenue and increased marketing expenses present some challenges.Q3-2025 Updates
Positive Updates
Historic High in Paying Users
Ending paying users in the third quarter reached a historic high, surpassing 250 million, demonstrating organizational agility and expanding brand influence.
Accommodation Business Growth
Accommodation business reached record highs in both daily room nights sold and quarterly revenue, with a more than 20% growth in high-quality accommodation room nights sold.
Successful Acquisition of Wanda Hotel Management
Completed the acquisition of Wanda Hotel Management, expected to accelerate growth trajectory and strengthen the hotel management business.
Increase in Annual Paying Users and ARPU
12-month annual paying users reached 253 million, an 8.8% year-over-year growth. Annual ARPU increased by 6% year-over-year to more than RMB 17.4.
Strong Financial Performance
Net revenue of RMB 5.5 billion, a 10.4% year-over-year increase; adjusted net profit of RMB 1,060 million, a 16.5% year-over-year growth with adjusted net margin expanding to 19.2%.
Expansion in International Air Ticketing
International air ticketing business accounted for around 6% of total transportation ticketing revenue, up about 2 percentage points year-over-year.
ESG Achievements
MSCI ESG rating achieved the highest level of AAA, and CSA score awarded industry mover by S&P Global.
Negative Updates
Decline in Tourism Business Revenue
Tourism business revenue decreased by 8% from the same period in 2024, mainly due to safety concerns regarding travel to Southeast Asia and strategic scaling back of prepurchased business.
Increased Selling and Marketing Expenses
Selling and marketing expenses in the third quarter of 2025 increased by 16.9% from the same period of 2024, accounting for 31.0% of revenue compared to 29.2% in the same period of 2024.
Company Guidance
In the third quarter of 2025, Tongcheng Travel reported significant growth in various metrics, highlighting the company's strategic initiatives and robust market performance. The company achieved a historic high in ending paying users, surpassing 250 million, and recorded a 12-month annual paying user growth of 8.8% year-over-year. The accommodation business saw more than a 20% increase in room nights sold, driven by a shift towards high-quality hotels. Tongcheng also completed the acquisition of Wanda Hotel Management, enhancing its hotel management segment. Financially, the company reported a net revenue of RMB 5.5 billion, a 10.4% increase from the previous year, and an adjusted net profit of RMB 1,060 million, reflecting a 16.5% growth. Other notable achievements include a record high in monthly paying users of 47.7 million and an annual ARPU increase of 6% to over RMB 17.4. Additionally, Tongcheng's international air ticketing business contributed around 6% of total transportation revenue, indicating a strong growth trajectory. The company remains committed to leveraging AI technologies to boost operational efficiency and enhance user experience, positioning itself for long-term sustainable growth.Tongcheng Travel Holdings Limited Financial Statement Overview
Summary
Tongcheng Travel Holdings Limited exhibits strong financial performance with robust revenue growth and profitability. The income statement shows healthy margins, while the balance sheet reflects a stable financial position with manageable leverage. The cash flow statement highlights significant cash generation, providing financial flexibility.Income Statement
Tongcheng Travel Holdings Limited has demonstrated strong revenue growth, with a TTM revenue increase of 2.38% compared to the previous year. The company maintains healthy profitability margins, with a gross profit margin of 65.13% and a net profit margin of 13.43% in the TTM. EBIT and EBITDA margins are also robust at 17.17% and 22.10%, respectively, indicating efficient operational management. The consistent improvement in revenue and margins over the years highlights the company's strong market position and operational efficiency.85
Very Positive
Balance Sheet
The company's balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.25 in the TTM, indicating prudent leverage. The return on equity (ROE) is strong at 12.10%, showcasing effective use of equity to generate profits. The equity ratio stands at 51.45%, suggesting a solid capital structure with a significant portion of assets financed by equity. Overall, the balance sheet indicates financial stability and efficient capital management, though there is room for improvement in reducing debt levels further.78
Positive
Cash Flow
Tongcheng Travel Holdings Limited has shown impressive growth in free cash flow, with an 81.45% increase in the TTM, reflecting strong cash generation capabilities. The operating cash flow to net income ratio is 0.34, and the free cash flow to net income ratio is 0.95, indicating efficient conversion of earnings into cash. The company's ability to generate substantial free cash flow supports its financial flexibility and potential for reinvestment or debt reduction.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.28B | 17.34B | 11.90B | 6.58B | 7.54B | 5.93B |
| Gross Profit | 11.90B | 11.11B | 8.74B | 4.78B | 5.65B | 4.24B |
| EBITDA | 4.37B | 3.52B | 2.91B | 839.95M | 1.56B | 1.01B |
| Net Income | 2.45B | 1.97B | 1.55B | -146.01M | 723.40M | 327.59M |
Balance Sheet | ||||||
| Total Assets | 41.24B | 37.78B | 31.72B | 25.03B | 21.51B | 19.11B |
| Cash, Cash Equivalents and Short-Term Investments | 13.44B | 11.17B | 9.41B | 6.71B | 5.57B | 6.90B |
| Total Debt | 5.31B | 5.01B | 3.01B | 2.41B | 329.39M | 395.57M |
| Total Liabilities | 19.03B | 16.81B | 13.17B | 9.04B | 6.25B | 5.10B |
| Stockholders Equity | 21.22B | 20.00B | 17.70B | 15.73B | 15.22B | 14.01B |
Cash Flow | ||||||
| Free Cash Flow | 4.46B | 2.57B | 3.03B | -230.70M | 1.53B | -30.68M |
| Operating Cash Flow | 4.71B | 2.97B | 4.00B | 302.31M | 1.84B | 135.52M |
| Investing Cash Flow | -4.97B | -834.26M | -1.76B | -397.03M | -1.56B | -772.56M |
| Financing Cash Flow | -226.09M | 678.79M | -592.23M | 1.54B | -20.42M | 176.54M |
Tongcheng Travel Holdings Limited Technical Analysis
Positive
21.76
Price Trends
22.19
Negative
21.64
Positive
20.86
Positive
Market Momentum
-0.11
Positive
48.78
Neutral
40.39
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 21.76 is below the 20-day moving average (MA) of 21.84, below the 50-day MA of 22.19, and above the 200-day MA of 20.86, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 48.78 is Neutral, neither overbought nor oversold. The STOCH value of 40.39 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | HK$49.70B | 18.18 | 12.39% | 0.83% | 15.33% | 34.99% | |
74 Outperform | HK$361.60B | 19.47 | 20.15% | 0.43% | 17.13% | 91.48% | |
64 Neutral | HK$266.30M | 6.28 | 54.71% | 11.54% | -1.27% | -50.18% | |
64 Neutral | HK$84.13M | 25.00 | 5.77% | 4.85% | 57.36% | -62.71% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | €640.93M | 19.51 | 12.44% | ― | 2.10% | 1.68% | |
45 Neutral | HK$324.48M | ― | -29.79% | ― | 68.29% | 41.90% |
* Consumer Cyclical Sector Average
HK:0780
Tongcheng Travel Holdings Limited
21.76
2.58
13.45%
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Trip.com Group Ltd.
538.00
37.51
7.49%
HK:1235
Travel Expert (Asia) Enterprises Limited
0.16
0.00
0.00%
HK:1901
Feiyang International Holdings Group Limited
0.32
0.24
300.00%
HK:6882
EGL Holdings Company Limited
0.51
-0.05
-8.93%
Tongcheng Travel Holdings Limited Corporate Events
Tongcheng Travel Announces Board Restructuring
Nov 25, 2025
Tongcheng Travel Holdings Limited announced changes to its board of directors and their respective roles, effective November 25, 2025. This restructuring includes the appointment of Wu Zhixiang and Jiang Hao as Co-Chairmen, with Ma Heping serving as the Chief Executive Officer. The changes reflect the company’s strategic efforts to strengthen its governance and potentially enhance its market positioning.
The most recent analyst rating on (HK:0780) stock is a Buy with a HK$23.50 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 Q3 2025 Financial Results
Nov 25, 2025
Tongcheng Travel Holdings Limited reported a strong financial performance for the third quarter of 2025, with a 10.4% increase in revenue compared to the same period in 2024. The company also saw a significant rise in adjusted EBITDA and net profit, indicating improved operational efficiency and profitability. The number of travelers served and user engagement metrics also reached record highs, showcasing the company’s robust market position and growth potential.
The most recent analyst rating on (HK:0780) stock is a Buy with a HK$23.50 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 Announce Q3 2025 Financial Results
Nov 3, 2025
Tongcheng Travel Holdings Limited announced that its Board of Directors will hold a meeting on November 25, 2025, to approve and publish the unaudited third quarterly results for the nine months ending September 30, 2025. This meeting is a significant event for stakeholders as it will provide insights into the company’s financial performance and strategic direction.
The most recent analyst rating on (HK:0780) stock is a Buy with a HK$23.50 price target. To see the full list of analyst forecasts on Tongcheng Travel Holdings Limited stock, see the HK:0780 Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.