According to a research report released by CICC, Tongcheng Travel (00780)'s revenue for 2024-2026 is expected to be 17.2/20.1/24 billion yuan, up 44.2%/19.5% year-on-year, and non-IFRS net profit to mother is 2.72/3.34/4.02 billion yuan, respectively, up 24.4%/22.6%/20.5% year-on-year. Reasonable value of HK$20.18 per share, maintaining a “buy” rating.
Tongcheng Travel announced financial results for 24Q3. According to the company's financial report, the company's 24Q3GMV increased 2.4% year over year to 72.8 billion yuan, and revenue increased 51.3% year over year to 4.99 billion yuan. The company's 3Q24 adjusted net profit increased 46.6% year over year to 0.91 billion yuan, with an adjusted net interest rate of 18.2%. The company's 24Q3 adjusted EBITDA increased 51.6% year over year to 1.32 billion yuan, and the adjusted EBITDA profit margin remained flat at 26.4% year on year. The company's 24Q3 MPU increased 5% year over year to 46.4 million people, APU increased 3.4% year over year to 0.23 billion people, and ARPU increased 53.2% year over year.
The bank said that by business, according to the company's financial report, (1) 24Q3's transportation ticketing revenue increased 20.6% year over year to 2.03 billion yuan. (2) 24Q3's accommodation reservation revenue increased 22.2% year-on-year to 1.38 billion yuan. (1) The company's 24q3 sales rate decreased by 9.1pp to 29% year-on-year and 6pp month-on-month. At the same time as the company shrinks its investment, revenue continues to rise. It can be seen that under the rising trend of brand effects, marketing leverage is being released. (2) The company's overseas business growth is beginning to bear fruit, and the share of non-first-tier city residents in the leisure, vacation and outbound travel markets continues to rise. According to the company's performance report, the number of international air tickets increased by more than 110% year on year in 24Q3, and the number of international hotel nights increased by more than 130% year on year. (3) The company continues to enrich supply, and the cross-selling rate increased to 12%.
