Jinwu Financial News | According to Northeast Securities Research, in 2024Q3, Tongcheng Travel (00780) achieved revenue of 5 billions/ same increase of 51% (exceeding expectations, 45-50% increase), adjusted net profit of 0.91 billion/same increase of 47% (exceeding expectations and guidelines).
According to the bank, core OTAs achieved 4 billions/same increase of 22%: 2 billions/same increase of 21% for transportation tickets, 1.38 billion for lodging bookings, 22% increase, and 0.61 billion for other revenue, same increase of 24%. International business growth led the way, with international air ticket volume increasing by more than 110%, and the number of nights in international hotels also increasing by more than 130%. The vacation business achieved revenue of 0.98 billion (over 0.9-0.95 billion guideline).
The bank said that as an OTA leader in the sinking market, Tongcheng Travel has outstanding competitive advantages in traffic and inventory resources, backed by Tencent and Ctrip. With the liberalization of epidemic control, the company will also benefit from the recovery of the travel market and increased penetration rate of the sinking market, supporting the company's continued growth in performance and leading the recovery of the industry. The bank expects the company's adjusted net profit for 2024-2026 to be 2.7/3.4/4 billion yuan, respectively, and the corresponding PE is 14/12/10 times, respectively, maintaining a “buy” rating.
