Investment Rating - The report maintains a "Buy" rating for both Ctrip and Tongcheng Travel, indicating a positive outlook for their performance in the online travel industry [2][3]. Core Insights - Ctrip's 3Q25 revenue increased by 16% year-on-year to 18.4 billion yuan, with a non-GAAP operating profit of 6.1 billion yuan, exceeding expectations due to lower marketing expenses [2][7]. - Tongcheng Travel's 3Q25 revenue grew by 10% year-on-year to 5.5 billion yuan, with adjusted net profit rising 17% to 1.06 billion yuan, driven by better-than-expected accommodation business performance [3][8]. - Both companies are expected to benefit from the recovery in outbound tourism, with Ctrip's international OTA platform bookings increasing over 60% year-on-year and inbound tourism bookings more than doubling [2][7]. - The report highlights the stability of the online travel industry and the potential for market share growth for both companies, particularly in international markets [2][3]. Summary by Sections 1. Overseas Social Services: Ctrip and Tongcheng Travel 3Q25 Performance - Ctrip's accommodation booking revenue rose by 18%, transportation revenue by 12%, and business travel management revenue by 15% [2][7]. - Tongcheng Travel's core OTA business revenue increased by 15%, with accommodation booking revenue also up by 15% [3][8]. - Both companies are positioned well for future growth, particularly in outbound travel, with expectations for international flight and hotel contributions to increase significantly by 2027 [3][8]. 2. Overseas Pharmaceuticals: CSPC Pharmaceutical Group - CSPC's revenue for the first three quarters of 2025 decreased by 12.3% to 19.89 billion yuan, but third-quarter revenue grew by 3.4% to 6.62 billion yuan, aligning with expectations [4][13]. - The report notes a decline in gross margin and a decrease in the contribution of the prescription drug segment to total sales [4][13]. 3. Overseas Education: Profitability Management Conditions Mature - The education index rose by 2% this week, with a year-to-date increase of 7.3% [19]. - The report suggests focusing on Hong Kong higher education companies, anticipating a recovery in profitability and expansion potential [21][29].

Group 1 - Multiple companies have pledged significant donations to support fire relief efforts in Hong Kong, demonstrating corporate social responsibility and community support [1][2][3][4][5][6] - China Resources Group has donated 20 million HKD for emergency rescue and medical assistance for victims [1] - Anta Group has committed a total of 30 million HKD, including 10 million HKD in cash and 20 million HKD in cold-weather gear for disaster relief [1] - Xtep Group has announced a donation of 20 million HKD in cash and equipment for disaster recovery efforts [1] - Bosideng has pledged 10 million HKD in cash and 20 million HKD in supplies for post-disaster support [2] - Nongfu Spring has donated 10 million HKD in cash and 5 million HKD in supplies for emergency relief and recovery [2] - Heytea has contributed 5 million HKD for resident support and rebuilding efforts [3] - Alibaba has initiated a donation of 20 million HKD and activated an emergency response mechanism to provide essential supplies [5] Group 2 - Companies are actively coordinating with local organizations to ensure timely delivery of aid and resources to affected residents [5][6] - Meituan's delivery platform Keeta has donated 5 million HKD for transitional housing and community recovery [5] - JD Group has mobilized resources to provide essential supplies and meals to affected individuals and rescue workers [5] - Ctrip Group has pledged 10 million HKD to assist affected residents and communities [5] - Various companies are continuing their support efforts, indicating a sustained commitment to aid the recovery process [6]

Group 1: Tourism Trends - The domestic tourism market is experiencing a "dual climate" effect due to the recent cold wave, with increased interest in both ice and snow tourism as well as warm weather destinations like Sanya [1][2] - Since November 7, searches for "hot springs" and "skiing" have surged over 100% compared to the previous month, indicating a strong demand for these activities [1] - The trend of booking hot spring hotels for consecutive nights has increased by over 10% in southern regions compared to the previous month, with Sanya leading in winter tourism [2] Group 2: Hotel Booking Insights - Popular hotel types for hot springs include family rooms and luxury suites, with many bookings sold out three days in advance for peak dates [2] - The top ten destinations for hot spring hotel bookings include Chongqing, Nanjing, and Beijing, reflecting a rise in local tourism [2][3] - For ice and snow tourism, hotel bookings around ski resorts have increased by over 100% compared to the previous month, with Harbin and Zhangjiakou seeing significant growth [4] Group 3: Travel Patterns - There is a notable increase in flight bookings from northern cities to southern destinations like Sanya, with Urumqi to Sanya flights growing over 50% [3] - The most popular cities for winter escape travel include Sanya, Kunming, and Haikou, with one-way ticket prices ranging from 800 to 1000 yuan [3] Group 4: Consumer Demand and Promotions - To cater to the demand for high-quality accommodations near ski and hot spring areas, a new promotional campaign has been launched, offering various benefits and packages [6]

Core Insights - The domestic tourism market is experiencing a "dual climate" effect due to the recent cold wave, with a surge in ice and snow tourism as popular ski resorts open, while beach destinations like Sanya are crowded with northern tourists [1][2] Group 1: Ice and Snow Tourism - The search interest for "hot springs" and "skiing" has significantly increased since November 7, with a more than 100% month-on-month growth [1] - Hotel bookings around ski resorts and accommodations tagged with "hot springs" and "private baths" have more than doubled compared to the same period last month [1] - The booking heat for ice and snow theme attractions has increased over 100% compared to the same period last month, with significant interest in hotels near Harbin and Zhangjiakou [4] Group 2: Hot Spring Tourism - The booking heat for hot spring hotels and homestays in southern regions is higher than in northern regions, with a more than 10% increase in bookings for stays of two nights or more compared to last month [2] - Popular hot spring accommodations in cities like Shanghai and Suzhou are selling out three days in advance for family rooms and luxury suites [2] - The demographic for hot spring tourism includes over 30% families with children, and there is a notable increase in the elderly demographic compared to last year [2] Group 3: Travel Trends - The trend of southern travel for warmth has intensified since the start of winter, with Harbin being the top source city for flights to Sanya, and a more than 50% increase in flight bookings from Urumqi to Sanya [3] - The top ten cities for winter escape travel include Sanya, Kunming, and Haikou, with one-way ticket prices ranging from 800 to 1000 yuan [3] Group 4: Quality Accommodation Demand - To meet the demand for high-quality accommodations near ski and hot spring resorts, the company has launched a themed campaign covering popular ski areas and high-quality hot spring accommodations [6] - The campaign includes a 300 yuan "Winter Hotel Package" and a 1000 yuan "Snow Friends Privilege Card," which covers various services including accommodation and transportation [6]

Core Insights - Company reported 3Q25 revenue of 5.5 billion, a year-over-year increase of 10.4%, aligning closely with the expected 5.49 billion [1] - Operating profit reached 1.16 billion, exceeding expectations by 7.5%, with an operating profit margin improvement of 1.5 percentage points year-over-year [1][3] - Adjusted net profit for the quarter was 1.06 billion, surpassing expectations by 2.8% [1] Revenue Performance - Revenue of 5.5 billion was driven by improved hotel and flight prices, with core OTA business revenue from accommodation and booking services reaching 1.58 billion, a year-over-year increase of 14.7% [2] - Traffic business revenue was 2.209 billion, up 9.0% year-over-year, supported by increased user demand and enhanced value-added products and services [2] - Other business revenue, boosted by hotel management growth, reached 821 million, a year-over-year increase of 34.9%, exceeding expectations by 1.4% [2] Profitability Analysis - Operating profit of 1.16 billion represented a year-over-year increase of 19.0%, exceeding expectations by 7.5% [3] - Core OTA operating profit was 1.44 billion, with an operating profit margin of 21.1%, surpassing expectations by 1.4 percentage points [3] - Adjusted net profit was 1.06 billion, a year-over-year increase of 16.5%, primarily driven by refined subsidies and cost control [3] International Business Outlook - International ticket booking volume saw significant year-over-year growth, contributing 6% to total traffic ticket revenue, an increase of 2 percentage points [4] - The company aims to increase international business revenue contribution by over 10% in the future [4] - The proprietary app showed strong performance, with daily active users reaching a historical high, driven by the launch of the AI itinerary planning tool DeepTrip [4] Financial Projections and Valuation - Revenue projections for 2025-2027 are 19.4 billion, 21.9 billion, and 24.4 billion, respectively, with adjusted net profit estimates of 3.4 billion, 3.9 billion, and 4.5 billion [4] - Valuation switched to 2026, with a target price set at 29.4 HKD based on a 16 times PE ratio for 2026 [5]

Core Viewpoint - Tongcheng Travel's 3Q25 performance slightly exceeded market expectations, driven by strong hotel and other revenue growth [1] Performance Review - 3Q25 revenue increased by 10% to 5.51 billion yuan, slightly above market expectations by 0.5%, primarily due to better-than-expected hotel and other revenues [1] - Non-IFRS net profit reached 1.05 billion yuan, exceeding market expectations by 1.1%, with a Non-IFRS net profit margin of 19.1%, attributed to effective control of service development and management expenses [1] Development Trends - Domestic hotel occupancy rates for mid-to-high star hotels are increasing, with a 10-15% year-on-year growth in domestic hotel room nights in 3Q25, aligning with previous expectations [1] - Average Daily Rate (ADR) saw low single-digit year-on-year growth, influenced by changing consumer habits, while the supply of high-quality accommodations, such as three-star hotels, grew by 20% [1] - For 4Q25, hotel revenue is expected to grow by 15%, with domestic hotel room nights increasing by approximately 10% and ADR maintaining low single-digit year-on-year growth [1] - In transportation, domestic ticket volume growth in 3Q25 was similar to the overall market, with a focus on improving monetization rates, expected to continue into the next quarter, projecting an 8% year-on-year growth in transportation revenue for 4Q25 [1] - The outbound business maintained rapid growth, with outbound ticket revenue accounting for 6% of transportation revenue, up 2 percentage points year-on-year, achieving overall profitability in 3Q25 [1] - The company completed the acquisition of Wanda Hotel Management, which operates nearly 3,000 hotels and has 1,500 more in the pipeline, enhancing its hotel management business [1] Core OTA Profitability - Core OTA operating profit in 3Q25 was 1.44 billion yuan, with an operating profit margin of 31.2%, remaining stable compared to the same period last year [1] - Increased marketing investments during the summer peak season were offset by effective control of other fixed costs [1] - For 4Q25, Non-IFRS net profit is projected to be 740 million yuan [1] Profit Forecast and Valuation - The company maintains its revenue and profit expectations for 2025 and 2026, with a target price of 28 HKD, corresponding to 18x/15x 2025e/2026e Non-IFRS P/E, indicating a potential upside of 30% [2] - Current trading is at 14x/12x 2025e/2026e Non-IFRS P/E [2]

Core Viewpoint - The company reported a strong performance in Q3 2025, with revenue of 5.509 billion yuan, a year-on-year increase of 10.4%, and an adjusted net profit of 1.060 billion yuan, up 16.5% year-on-year [1] Business Performance Summary - The core OTA business showed robust growth, with Q3 revenue reaching 4.609 billion yuan, a year-on-year increase of 14.9% [1] - Accommodation booking revenue for Q3 was 1.579 billion yuan, up 14.7% year-on-year, driven by strong summer demand and an increase in high-quality hotel bookings [1] - Transportation ticketing revenue reached 2.209 billion yuan, a 9.0% year-on-year increase, supported by the growth in international ticket sales, which accounted for 6% of total transportation revenue, up 2.0 percentage points [1] - Other business revenue grew significantly to 0.821 billion yuan, a 34.9% year-on-year increase, primarily due to strong performance in hotel management [1] - Vacation revenue for Q3 was 0.900 billion yuan, down 8.0% year-on-year, mainly due to ongoing safety concerns regarding travel to Southeast Asia [1] Profitability and Efficiency - The company's gross margin reached 65.7%, an increase of 2.3 percentage points year-on-year, while the adjusted net profit margin was 19.2%, up 1.0 percentage point [1] - Profitability improvements were attributed to the positive effects of revenue scale and the application of AI to enhance operational efficiency, with the AI trip planning tool DeepTrip attracting millions of users [1] - As of September 30, the company had 253 million annual paying users, an increase of 8.8% year-on-year, with over 87% of registered users residing in non-first-tier cities [1] Future Outlook - For Q4 2025, the core OTA revenue is expected to maintain double-digit year-on-year growth, with other business revenue likely to be driven by hotel management [1] - Accommodation revenue is projected to sustain double-digit growth, while transportation revenue is expected to grow in single digits, and vacation business may continue to face challenges [1] Financial Forecast and Valuation - The adjusted net profit forecasts for 2025-2027 are 3.368 billion yuan, 4.044 billion yuan, and 4.667 billion yuan, respectively, with the current stock price corresponding to adjusted PE ratios of 14, 12, and 10 times for the same years [1] - The company maintains a "buy" rating based on its performance and growth prospects [1]

Core Viewpoint - Tongcheng Travel's revenue for Q3 2025 increased by 10% year-on-year to 5.5 billion yuan, with adjusted net profit rising by 17% to 1.06 billion yuan, exceeding expectations primarily due to better-than-expected accommodation business performance [1] Group 1: Financial Performance - The earnings per share forecast for 2025 has been raised from 1.41 yuan to 1.44 yuan, while the forecasts for 2026 and 2027 remain at 1.57 yuan and 1.74 yuan respectively [1] - The target price has been increased from 26.5 HKD to 27 HKD, indicating a potential upside of 25% [1] Group 2: Business Segments - The core OTA business revenue grew by 15% year-on-year in Q3, with accommodation booking revenue also increasing by 15%, driven by higher average hotel prices and record daily room nights [1] - Transportation ticketing revenue rose by 9%, while other business revenue surged by 35%, mainly due to growth in hotel management services [1] - The number of annual paying users increased by 9% year-on-year to 252.9 million, marking a historical high [1] Group 3: International Business - The outbound ticket business has become profitable, contributing approximately 6% to transportation revenue in Q3 [1] - The company anticipates rapid growth in outbound travel, with international tickets and hotels expected to account for 10-15% of overall ticket and hotel revenue by 2027 [1] Group 4: Investment Outlook - The company maintains a buy rating, citing strong growth certainty in the online travel industry and a stable competitive landscape [1] - Tongcheng Travel is viewed as a high-certainty target within domestic consumption, with the expansion of outbound travel expected to enhance profit margins and hotel management services likely to provide additional growth drivers [1]

Core Insights - The company reported a revenue of 5.5 billion yuan for Q3 2025, representing a year-over-year increase of 10.4%, and an adjusted net profit of 1.06 billion yuan, up 17% year-over-year, with an adjusted net profit margin of 19.2%, an increase of 1.0 percentage points year-over-year [1] Group 1: Core Online Travel Platform - The core online travel platform achieved a revenue of 4.6 billion yuan in Q3 2025, reflecting a year-over-year growth of 15%, with an operating profit margin of 31.2%, an increase of 0.1 percentage points year-over-year [1] - In the transportation ticketing segment, revenue reached 2.2 billion yuan, up 9% year-over-year, driven by deep insights into user demand and a continuous enhancement of value-added products and services, with international ticket sales growing rapidly [1] - The accommodation booking segment generated 1.58 billion yuan in revenue, a 15% year-over-year increase, benefiting from a significant rise in high-quality hotel room nights and improved brand recognition among high-value users in lower-tier cities [1] - Other revenue sources totaled 820 million yuan, a 35% year-over-year increase, primarily due to strong performance in hotel management, with nearly 3,000 hotels currently operating and 1,500 hotels in preparation as of September 30, 2025 [1] Group 2: Vacation Business and User Performance - The vacation business faced short-term revenue pressure, generating 900 million yuan in Q3 2025, a decline of 8% year-over-year, largely due to security issues in Southeast Asia [2] - The company saw a steady increase in paid user numbers, with an average monthly paid user count of 47.7 million, up 2.8% year-over-year, and an annual paid user count of 253 million, an increase of 8.8% year-over-year, with total service users growing by 7.3% to 2.02 billion [2] - As of September 30, 2025, over 87% of registered users lived in non-first-tier cities in China, with more than 70% of new paid users from WeChat in Q3 2025 coming from these areas, reinforcing the platform's position in the mass market [2] Group 3: Profit Forecast and Investment Rating - The company is positioned as a leading OTA platform in lower-tier markets, benefiting from the release of domestic travel demand, increased penetration in these markets, international business expansion, and user growth driven by online and offline traffic [2] - Revenue forecasts for 2025-2027 are adjusted to 19.3 billion, 21.9 billion, and 24.5 billion yuan, with net profits projected at 2.9 billion, 3.2 billion, and 3.7 billion yuan, respectively, leading to diluted EPS of 1.3, 1.4, and 1.6 yuan, and corresponding P/E ratios of 15.7, 14.2, and 12.3 [2] - The target market value for the company in 2026 is set at 60.2 billion yuan, with a target price of 28 HKD, maintaining a "buy" rating [2]

Core View - The company reported Q3 2025 earnings with revenue of 5.509 billion yuan, a year-on-year increase of 10.4%, and adjusted net profit of 1.060 billion yuan, up 16.5% year-on-year, indicating strong performance in both revenue and profit [1][2] Financial Performance - Q3 2025 revenue reached 5.509 billion yuan, aligning with previous guidance, while adjusted net profit of 1.060 billion yuan slightly exceeded the upper limit of prior guidance [1] - Revenue from transportation ticketing services was 2.209 billion yuan, a year-on-year increase of 9.0%, and accommodation booking services generated 1.579 billion yuan, up 14.7% year-on-year [1] - Other business revenue was 0.821 billion yuan, showing a significant year-on-year increase of 34.9% [1][2] - Q3 2025 gross margin was 65.7%, up 2.3 percentage points year-on-year, with service development costs accounting for 9.3% of revenue, down 0.8 percentage points [2] User Growth and Market Position - As of Q3 2025, the company had 253 million annual paying users and over 2 billion cumulative service users, both reaching historical highs [2] - The average monthly paying users for the quarter reached 47.7 million, also a new record [2] Strategic Developments - The company completed the acquisition of Wanda Hotel Management (Hong Kong) Limited on October 16, 2025, which operates 239 hotels and is expected to enhance the company's brand portfolio and accelerate hotel management business expansion [2] - The company launched the "New Traveler Public Welfare Plan 2.0" to support high-quality development of industry partners [3] - The company achieved an MSCI ESG rating upgrade to the highest level of AAA [3] Technological Advancements - AI tools are widely applied in hotel and business travel scenarios, with nearly 3,000 hotels operating on the Yilong hotel technology platform and an additional 1,500 in development [3] - The Yilong Technology's AI can help hotel businesses improve efficiency by 50% and reduce procurement costs by 30% through one-stop supply chain services [3] Future Outlook - The company expects to achieve net profits of 2.7 billion yuan, 3.32 billion yuan, and 3.83 billion yuan from 2025 to 2027, with adjusted net profits projected at 3.35 billion yuan, 3.9 billion yuan, and 4.36 billion yuan for the same period [3]