Tongcheng Travel Holdings Limited (0780) AI Stock Analysis

• Market Cap: HK$51.39B
• Dividend Yield: 0.84%
• Average Volume (3M): 7.74M
• Price to Earnings (P/E): 18.4
• Beta (1Y): 0.99
• Revenue Growth: 25.29%
• EPS Growth: 47.32%
• Country: HK
• Employees: 10,141
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Services
• EPS (TTM): 0.37
• Shares Outstanding: 2,348,830,800
• 10 Day Avg. Volume: 6,294,793
• 30 Day Avg. Volume: 7,742,859
• PEG Ratio: 0.71
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 2.26
• P/FCF Ratio: 15.29
• 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$25.90
• Price Target Upside: 21.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 72 Outperform
• Price Target: HK$23.50 ▲(9.92% Upside)

Tongcheng Travel Holdings Limited's strong financial performance is the most significant factor, contributing to a solid overall score. The technical analysis indicates a neutral to slightly bearish trend, while the valuation suggests a fair market price. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates a strong market position and effective business model, supporting long-term expansion and profitability.

Cash Generation

Strong cash generation enhances financial flexibility, allowing for reinvestment in growth opportunities and potential debt reduction, supporting sustainable operations.

Profitability Margins

High profitability margins reflect efficient operational management and a competitive edge, ensuring the company can maintain profitability even in challenging market conditions.

Negative Factors

Debt Levels

While leverage is manageable, further reduction in debt levels could enhance financial stability and reduce interest burden, improving long-term financial health.

Earnings Call Data Absence

The absence of earnings call data limits transparency and investor insight into management's strategic direction and future outlook, potentially impacting investor confidence.

Technical Weakness

Technical weakness may reflect underlying market concerns or volatility, which could affect investor sentiment and stock performance in the medium term.

Tongcheng Travel Holdings Limited Business Overview & Revenue Model

Company Description

Tongcheng Travel Holdings Limited, listed under the stock code 0780, is a leading online travel service provider in China. The company primarily operates in the travel and tourism sectors, offering a wide range of services including transportation ticketing, accommodation reservations, and various travel-related activities. It aims to cater to the diverse needs of travelers by providing an integrated platform that facilitates convenient and efficient travel planning and booking.

How the Company Makes Money

Tongcheng Travel Holdings Limited generates revenue mainly through its online platform, which offers comprehensive travel services. The company's key revenue streams include commissions from transportation ticket sales, such as train and airline tickets, and service fees from hotel bookings and other travel-related reservations. Additionally, Tongcheng Travel benefits from partnerships with major airlines, hotels, and other travel service providers, which help enhance its service offerings and market reach. The company's earnings are also influenced by its ability to attract and retain a large user base, leveraging technology and data analytics to provide personalized travel solutions.

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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 21.38
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 21.38 is below the 20-day moving average (MA) of 21.97, below the 50-day MA of 22.11, and above the 200-day MA of 20.50, indicating a neutral trend. The MACD of -0.20 indicates Positive momentum. The RSI at 42.36 is Neutral, neither overbought nor oversold. The STOCH value of 46.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
9961	―	HK$371.82B	20.02	12.88%	0.41%	17.30%	27.51%
0780	―	HK$51.39B	18.37	12.26%	0.84%	25.29%	47.32%
0265	―	€692.62M	21.09	12.44%	―	2.10%	1.68%
1235	―	HK$89.23M	26.52	5.77%	4.57%	57.36%	-62.71%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6882	―	HK$256.25M	6.04	54.71%	11.32%	-1.27%	-50.18%
1901	―	HK$324.48M	―	-29.79%	―	68.29%	41.90%

Tongcheng Travel Holdings Limited Corporate Events

Tongcheng Travel Reports Strong Q2 2025 Financial Results

Tongcheng Travel Holdings Limited reported a 10% increase in revenue for the second quarter of 2025, reaching RMB4,669.4 million compared to the same period in 2024. The company’s adjusted EBITDA saw a significant rise of 29.7%, and the adjusted net profit increased by 18%, indicating strong financial performance. The growth in average monthly paying users by 9.2% also reflects the company’s expanding customer base. These results highlight Tongcheng Travel’s robust market positioning and operational efficiency, potentially benefiting stakeholders and enhancing its competitive edge in the OTA industry.

The most recent analyst rating on (HK:0780) stock is a Buy with a HK$24.00 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 to Announce Interim Results on August 18

Tongcheng Travel Holdings Limited has announced a board meeting scheduled for August 18, 2025, to approve and publish the unaudited interim results for the first half of the year. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and operational progress, potentially impacting its market positioning.

The most recent analyst rating on (HK:0780) stock is a Buy with a HK$24.00 price target. To see the full list of analyst forecasts on Tongcheng Travel Holdings Limited stock, see the HK:0780 Stock Forecast page.