Goldwell Financial News | The Hang Seng Index closed at 19,705 on Wednesday (20th), up 41 points or 0.2%. The market turnover was 114.6 billion yuan. The national index rose by 0.12%, closing at 7,090, while the science and technology index increased by 0.41%, reporting 4,413. Innovent Bio (01801) had its target price raised by UBS Group, surging 8.1% for the day; Lai Kai Pharmaceutical (02105) collaborated with Eli Lilly and Co on clinical trials for obesity drugs, soaring 48.3% for the day; Bitcoin set another record yesterday, with the concept stock Meitu (01357) rising significantly by 10.4%;

The Dow Jones closed at 43,408 points on Wednesday (20th), up 139 points or 0.32%; the S&P was approximately flat at 5,917 points; the Nasdaq fell by 0.11%, reporting 18,966 points. Tesla's stock price dropped by 1.2% after company chair Robyn Denholm revealed exercising stock options and selling shares on November 15, cashing out about 32.5 million dollars; Amazon and Alphabet's stock prices fell by 0.9% and 1.2% respectively. Discount retailer Target lowered its annual profit forecast, and its stock price fell by 21.4%; Ford Motor announced the reduction of about 4,000 positions in Europe, equivalent to approximately 14% of the local workforce, with its stock price dropping by 2.9%. The leading cryptocurrency Bitcoin reached new highs for two consecutive days, once increasing by 3.8% to a peak of 94,962 dollars. Nasdaq launched options contracts for Blackrock's Bitcoin spot trading ETF iShares Bitcoin Trust (IBIT) on Tuesday, with Bloomberg data showing transactions exceeding 0.35 million contracts, of which about 80% bet on future price increases. Microstrategy plans to issue convertible debt to buy more Bitcoin, with its stock price rising by 10.1% and market cap surpassing 100 billion dollars. The Asia-Pacific stock market showed mixed signs this morning (21st), with the Nikkei 225 Index currently at 38,062 points, down 290 points or 0.76%. The Korea Composite Index currently reports 2,481 points, up 0.92 points or 0.04%. The market lacks focus, leading to a tug-of-war between bulls and bears.

(The author is a licensed person of the China Securities Regulatory Commission and does not hold any of the above stocks.)

Market Focus: Tongchengtravel (00780)

In the third quarter of 2024, Tongchengtravel's transaction volume was 72.8 billion yuan (RMB, same below), a year-on-year increase of 2.4%, reaching a historical high. The group's revenue during the period was 4.991 billion yuan, a year-on-year increase of 51.3%; the pre-tax profit was 0.955 billion yuan, a year-on-year increase of 59.8%; net profit during the period was 0.803 billion yuan, a year-on-year increase of 55.8%; adjusted EBITDA for the period was 1.319 billion yuan, a year-on-year increase of 51.6%. By business segment, the core online travel platform's revenue primarily came from lodging booking services and transportation ticketing services, amounting to 4.013 billion yuan, a year-on-year growth of 21.6%. Revenue from lodging booking services was 1.378 billion yuan, a year-on-year increase of 22.2%. Revenue from transportation ticketing services reached 2.027 billion yuan, a year-on-year increase of 20.6%, mainly due to the increased demand for the transportation ticketing services and value-added products and services provided by the group. Additionally, other revenues of 0.609 billion yuan increased by 23.7% compared to the same period last year. With effective customer acquisition strategies and excellent operational capabilities, the group further solidified its foothold in China's mass market. As of September 30, 2024, registered users residing in non-first-tier cities in China accounted for over 87% of the total registered users. The group continues to achieve outstanding performance, and with the approach of Christmas and New Year, it is believed that the demand for purchasing travel products through online travel platforms will continue to rise, making the group's strong performance sustainable.

Target price $21, stop-loss price $15.7

(The author is a licensed person of the China Securities Regulatory Commission and does not hold any of the above stocks.)

Author: Dr. Tang Shengxing, Chairman of the Hong Kong Stock Analysts Association.