Group 1 - The core theme of the Dragon Boat Festival this year is characterized by short-distance travel, a rise in folk culture, and experience-based tourism, influenced by multiple factors such as the "no time-off" policy and the proximity to the summer vacation [1] - The parent-child travel market is experiencing a surge, with ticket bookings for popular theme parks doubling and camping activity reservations increasing by 80%, as families engage in activities like watching dragon boat races and making rice dumplings [1][3] - The value of folk culture IP is a significant highlight this Dragon Boat Festival, with searches related to folk customs increasing over 100% year-on-year, and keywords like "dragon boat" and "rice dumpling" seeing over 200% growth [2] Group 2 - Accommodation preferences show a notable shift, with high-star hotel bookings (4-star and 5-star) increasing by 30% to 50% year-on-year, significantly outpacing lower-star hotels, reflecting a demand for quality in folk culture tourism [2] - The trend of "good accommodation" and "deep experiences" is emerging, with hotel packages that include activities and dining seeing a 24% increase in bookings [2] - The rental car market is thriving, with a 47% year-on-year increase in rental bookings, indicating a preference for self-driving trips despite the lack of free highway access during the holiday [4] Group 3 - Short-distance travel is prevalent, with many travelers opting for high-speed rail within a three-hour radius, particularly in urban clusters like Beijing-Tianjin-Hebei and the Yangtze River Delta [4] - Cross-border travel is also on the rise, with destinations like Japan, South Korea, and Southeast Asia being popular choices, particularly among travelers from the Jiangsu-Zhejiang-Shanghai region [5]

Core Insights - Tongcheng Travel's Q1 2025 revenue increased by 13% to 4.4 billion yuan, exceeding market expectations by 1%, primarily driven by better-than-expected transportation revenue [1] - Non-IFRS net profit reached 780 million yuan, surpassing market expectations by 6%, with a Non-IFRS net profit margin of 18% attributed to effective cost control [1] Revenue Growth - The tourism consumption remains resilient, with Q2 core OTA business revenue expected to maintain a year-on-year growth rate of 10-15% [1] - In Q1 2025, the number of nights booked met guidance, with international business nights increasing by over 50%, driving revenue growth [1] - During the May Day holiday, domestic travel increased by 6.4% year-on-year, and total spending by tourists grew by 8.0% [1] Hotel and Transportation Performance - Q2 2025 hotel revenue is projected to grow by 13% year-on-year, with hotel prices expected to see low single-digit growth due to a shift towards higher-quality products and services [1] - Q1 2025 domestic flight volume remained flat, while international flight volume increased by over 40%, with international ticket revenue accounting for over 5% of transportation revenue [1] - Q2 2025 transportation revenue is expected to grow by 10%, with international business entering a peak season [1] User Engagement and Profitability - Q1 core OTA business revenue grew by 18%, supported by a 9% increase in MPU and improved monetization from reduced user subsidies [2] - Daily Active Users (DAU) for the independent app increased by nearly 60%, surpassing 4 million during the May Day holiday, with independent app revenue accounting for about 7% of core OTA revenue [2] - Q1 2025 core OTA operating profit margin was 29%, exceeding expectations by 3 percentage points due to better-than-expected marketing investments and improved operational efficiency [2] Future Outlook and Valuation - The company maintains its profit guidance of 3.2 to 3.4 billion yuan for 2025, with an ongoing target of achieving breakeven in international business [2] - The target price is set at 23 HKD, corresponding to 15x/12x 2025e and 2026e Non-IFRS P/E, indicating an upside potential of 12% [2]

Core Viewpoint - The company reported a strong performance in Q1 2025, with revenue growth driven by increased domestic travel demand and improved commission rates, leading to a positive outlook for the year [1][2][3] Group 1: Financial Performance - In Q1 2025, the company achieved revenue of 4.38 billion yuan, a year-on-year increase of 13.2% [1] - Adjusted EBITDA and net profit for Q1 2025 were 1.16 billion yuan and 790 million yuan, respectively, reflecting year-on-year growth of 41.3% and 41.1% [1] - Revenue from accommodation bookings, transportation tickets, vacation services, and other businesses were 1.19 billion yuan, 2.00 billion yuan, 590 million yuan, and 600 million yuan, with year-on-year changes of +23.3%, +15.2%, -11.8%, and +20.0% respectively [1] Group 2: User Growth and Market Expansion - The average monthly paying users reached 46.5 million, a year-on-year increase of 9.2%, while annual paying users totaled 250 million, up 7.8% [2] - Over the past 12 months, the company served 1.96 billion travelers, marking a 7.3% increase [2] - International ticket sales and hotel night bookings grew by over 40% and 50% year-on-year, respectively, due to effective international expansion strategies [2] Group 3: Cost Management and Profitability - The company's gross margin for Q1 2025 was 68.8%, an increase of 3.8 percentage points [2] - Management, R&D, and sales expense ratios were 7.0%, 11.3%, and 33.2%, with year-on-year changes of +0.2 percentage points, -1.3 percentage points, and -2.2 percentage points respectively [2] - The adjusted net profit margin was 18.0%, reflecting an increase of 3.6 percentage points, indicating improved profitability due to cost reduction and efficiency measures [2] Group 4: Future Outlook - The company expects continued high growth in revenue driven by increasing OTA penetration and improved commission rates, alongside a reduction in losses from international operations [3] - The overall performance for the year is deemed to have strong certainty, maintaining a "strongly recommended" rating [3]

Core Viewpoints - In Q1 2025, the company achieved revenue of 4.377 billion yuan, a year-on-year increase of 13.2%, and an adjusted net profit of 788 million yuan, a year-on-year increase of 41.1% [1] - The company's profitability has significantly improved, with ongoing progress in cost reduction and efficiency enhancement, and expectations for continued growth in core OTA business scale effects and international business loss reduction [1][2] - The company plans to acquire Wanda Hotel Management to enhance its hotel management capabilities, indicating ongoing optimization of its diversified business [1][3] Financial Performance - Q1 2025 revenue growth of 13.2% aligns with previous expectations, while adjusted net profit growth of 41.1% exceeds expectations, resulting in an adjusted net profit margin of 18.0%, up 3.6 percentage points year-on-year [1] - Adjusted EBITDA for Q1 2025 was 1.159 billion yuan, a year-on-year increase of 41.3%, with an EBITDA margin of 26.5%, up 5.3 percentage points [1] - Revenue breakdown shows accommodation booking revenue of 1.190 billion yuan (up 23.3% YoY), transportation ticketing service revenue of 2.000 billion yuan (up 15.2% YoY), and other core OTA business revenue of 603 million yuan (up 20.0% YoY) [1] User Engagement - The company has deepened user value, with average monthly paying users reaching 46.5 million (up 9.2% YoY) and annual paying users reaching 250 million (up 7.8% YoY), both hitting record highs [2] - The overall user payment frequency is expected to remain stable, with a focus on youth marketing and a significant increase in daily active users on the app [2] Business Development - The company is enhancing market solutions and sales efficiency, with AI applications improving operational efficiency [3] - In Q1 2025, the company provided cost-effective transportation solutions, with significant growth in product bookings, including a 22% increase in "Huo Huo" intermodal product bookings and a 44% increase in "Kong Kong" intermodal bookings [3] - The company launched AI-driven services, reducing employee workload by 20% and helping hotels reduce labor costs by 30% through AI self-service solutions [3] Strategic Outlook - The company expects to achieve net profits of 2.52 billion yuan, 3.02 billion yuan, and 3.51 billion yuan from 2025 to 2027, with corresponding adjusted net profits of 3.31 billion yuan, 3.72 billion yuan, and 4.26 billion yuan [4] - Current stock price corresponds to a PE ratio of 18X, 15X, and 13X for net profits, and 14X, 12X, and 11X for adjusted net profits for the same period [4]

Group 1 - The company reported a net profit of 790 million yuan, a year-on-year increase of 41%, exceeding the guidance range of 700-750 million yuan [1] - The average monthly paying users increased by 9.2% to 46.5 million [1] - Core-OTA segment revenue grew by 18% to 3.79 billion yuan, with transportation ticketing and accommodation booking revenues of 2.00 billion and 1.19 billion yuan, respectively, showing year-on-year increases of 15% and 23% [1] Group 2 - The gross profit margin for Q1 was 68.7%, an increase of 3.7 percentage points year-on-year, driven by the rapid growth of Core-OTA and a decrease in the proportion of lower-margin vacation business [1] - The adjusted net profit margin was 18.0%, up 3.6 percentage points year-on-year [1] - The company is actively leveraging WeChat traffic for accelerated growth and maintaining high demand in domestic travel while tightening user subsidies to ensure profit levels [1] Group 3 - Following the acquisition of Wanda Hotel Management, the profit forecast for 2025-2027 has been raised, with expected net profits of 2.50 billion, 3.01 billion, and 3.52 billion yuan, respectively [2] - The adjusted net profit for 2025 is projected to be 3.50 billion yuan, corresponding to a PE ratio of 13 times [2] - The investment rating is maintained at "Buy" [2]

Group 1: Financial Performance - The company reported Q1 2025 revenue of 4.377 billion yuan, a year-on-year increase of 13.2% [1] - Adjusted EBITDA reached 1.159 billion yuan, up 41.3% year-on-year [1] - Adjusted net profit was 788 million yuan, reflecting a 41.1% increase compared to the previous year [1] - Gross margin improved to 68.8%, up 3.8 percentage points, primarily due to cost optimization in the core OTA business [1] - The adjusted net profit margin increased to 18.0%, up 3.6 percentage points [1] Group 2: Business Segments - Core OTA business revenue grew by 18.4%, with operating profit margin at 29.2%, up 6.6 percentage points [1] - Accommodation booking revenue was 1.19 billion yuan, a 23.3% increase, driven by high cross-selling rates and over 50% growth in international hotel night stays [1] - Transportation ticketing revenue reached 2 billion yuan, up 15.2%, with significant growth in connecting travel products [1] - Other business revenue was 603 million yuan, a 20% increase, with nearly 2,500 hotels on the platform [1] - Vacation business revenue declined to 585 million yuan, down 11.8%, impacted by safety issues in Southeast Asia [1] Group 3: User Metrics and AI Integration - Monthly active paid users (MPU) reached 46.5 million, a 9.2% increase, while annual paid users (APU) hit 247 million, up 7.9% [2] - Average revenue per user (ARPU) was 72.2 yuan, reflecting a 25.6% year-on-year increase [2] - The platform introduced a new high-tier membership with over 50 additional benefits to enhance user loyalty [2] - AI integration through DeepSeek and the launch of DeepTrip improved user decision-making and internal efficiency, reducing employee workload by 20% [2]

Core Insights - The company reported a revenue of 4.4 billion yuan in Q1 2025, representing a year-over-year increase of 13%, and an adjusted net profit of 790 million yuan, up 41% year-over-year, with an adjusted net profit margin of 18%, an increase of 3.6 percentage points year-over-year [1] Group 1: Core Online Travel Platform - The core online travel platform showed strong growth, achieving a revenue of 3.8 billion yuan in Q1 2025, a year-over-year increase of 18%, with an operating profit margin of 29.2%, up 6.6 percentage points year-over-year [1] - In the transportation ticketing segment, revenue reached 2 billion yuan, a year-over-year increase of 15%, driven by increased demand and enhanced value-added services, with international ticket sales growing over 40% year-over-year [1] - The accommodation booking segment generated 1.2 billion yuan in revenue, up 23% year-over-year, benefiting from high-quality service offerings and strong supplier partnerships, with international hotel night volume increasing over 50% year-over-year [1] - Other segments achieved a revenue of 600 million yuan, a year-over-year increase of 20%, primarily due to strong performance in hotel management and PMS businesses, with over 2,500 hotels currently operating and more than 1,400 hotels in preparation [1] - The company announced a proposal to acquire 100% of Wanda Hotel Management, which operates in a light-asset model focusing on mid-to-high-end hotel operations and management, enhancing the company's brand portfolio [1] Group 2: Vacation Business and User Performance - The vacation business faced short-term revenue pressure due to security issues in Southeast Asia, with Q1 2025 revenue declining by 11.8% to 590 million yuan [2] - The company is focused on improving operational efficiency in the vacation segment and exploring user needs in various scenarios [2] - The average monthly paying user count reached 46.5 million, a year-over-year increase of 9.2%, with annual paying users totaling 247 million, up 7.8% year-over-year, and cumulative service users growing by 7.3% to 1.96 billion [2] - Over 87% of registered users reside in non-first-tier cities in China, with approximately 68% of new paying users from non-first-tier cities, 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 the lower-tier market, benefiting from the release of domestic travel demand, increased penetration in lower-tier markets, international business expansion, and user growth through online and offline traffic [3] - Revenue forecasts for 2025-2027 are adjusted to 19.3 billion, 22.1 billion, and 24.9 billion yuan, with net profits of 2.7 billion, 3 billion, and 3.5 billion yuan, respectively, corresponding to diluted EPS of 1.2, 1.3, and 1.5 yuan, and P/E ratios of 16.3, 14.7, and 12.6 times [3] - The target market capitalization for the company in 2025 is set at 51.4 billion yuan, with a target price of 24 HKD, maintaining a "buy" rating [3]

Core Viewpoint - Wang Jianlin's sale of 48 Wanda Plazas has become a trending topic, marking the largest divestment of Wanda Plaza assets in the past two years [1] Group 1: Transaction Details - The acquisition involves a joint venture established by several companies, including Tencent and JD.com, to purchase 100% equity of 48 target companies held by Dalian Wanda Commercial Management Group [1] - The 48 Wanda Plazas are located in 39 cities, including Beijing, Guangzhou, Chengdu, and others [1] - The transaction was approved unconditionally by the State Administration for Market Regulation on May 21, but the specific amount of the deal has not been disclosed [1] Group 2: Background and Context - The buyers are familiar with Wanda, having previously invested in Wanda Commercial in 2018 for 34 billion yuan, acquiring approximately 14% of the shares [2] - In March 2024, Dalian Wanda Commercial Management Group signed an investment agreement with several institutions, including the Abu Dhabi Investment Authority, to invest about 60 billion yuan to resolve a listing crisis [2] - Following this investment, Dalian Wanda's control over Wanda Commercial was reduced from 78.83% to 40% [2] Group 3: Financial Situation - As of September 2024, Dalian Wanda Commercial Group reported cash holdings of 15.116 billion yuan, short-term loans of 3.89 billion yuan, and long-term debts totaling 112.65 billion yuan [2] - To alleviate financial pressure, Wanda has been actively selling assets, with nearly 40 Wanda Plazas sold in 2023 alone [3] - In April 2025, Tongcheng Travel announced an agreement to acquire 100% of Wanda Hotel Management Company for approximately 2.49 billion yuan, indicating ongoing asset restructuring efforts [3]

Investment Rating - The investment rating for the company is "Outperform the Market" [6][15]. Core Views - The company has shown a robust revenue growth of 13.2% year-on-year in Q1 2025, with adjusted net profit increasing by over 40% [10][15]. - The online travel agency (OTA) segment has benefited from the booming travel demand in lower-tier markets, with OTA revenue growing by 18.4% [10][11]. - The company is focusing on improving monetization efficiency and profitability, with a projected compound annual growth rate (CAGR) of over 17% for adjusted profits over the next three years [15]. Revenue Summary - Q1 revenue reached 4.377 billion yuan, with OTA revenue contributing significantly to this growth [10][11]. - The average revenue per user (ARPU) has increased by 25.6% year-on-year, indicating effective monetization strategies [11]. - The company has diversified its revenue streams, with transportation, accommodation, and other services growing by 15.2%, 23.3%, and 20.0% respectively [11]. Profitability Summary - The company's gross margin improved by 3.8 percentage points in Q1, driven by enhanced monetization rates in the OTA business [14]. - Sales expense ratio decreased by 2.2 percentage points, reflecting a more disciplined marketing approach [14]. - The management expects core business profit margins to improve year-on-year, supported by ongoing efficiency optimizations [14]. Financial Forecasts - The company forecasts adjusted net profits of 3.304 billion yuan, 3.885 billion yuan, and 4.535 billion yuan for 2025, 2026, and 2027 respectively [5][15]. - Revenue projections for the next few years are 19.626 billion yuan in 2025, 22.329 billion yuan in 2026, and 25.331 billion yuan in 2027, reflecting a steady growth trajectory [5][15]. - The price-to-earnings (PE) ratio is expected to decrease from 14x in 2025 to 10x in 2027, indicating a favorable valuation outlook [15].

Group 1 - As of May 26, a total of 88 stocks reached their 52-week highs, with Tianbao Energy (01671), China Nuclear International (02302), and Honghui Group (00183) leading the high rate at 141.60%, 93.92%, and 21.34% respectively [1] - Tianbao Energy closed at 0.700 and reached a peak of 1.510, marking a significant increase of 141.60% [1] - China Nuclear International closed at 4.090 with a highest price of 5.100, reflecting a rise of 93.92% [1] Group 2 - Other notable stocks that reached their 52-week highs include Century International (00959) with an increase of 18.64%, and Junjie Group Holdings (08188) with a rise of 17.95% [1] - The list also includes Haotian Financial Group (01260) with a 13.70% increase and Dechang Electric Holdings (00179) with a 10.96% rise [1] - The overall trend indicates a strong performance in the market, with multiple stocks achieving significant gains [1] Group 3 - The report also highlights stocks that reached their 52-week lows, with Sipai Health (00314) showing the largest decline at -11.65% [3] - Other stocks experiencing declines include Feitian Yundong (06610) at -9.05% and Hengrui Medicine (01276) at -4.81% [3] - The presence of stocks reaching both highs and lows suggests a volatile market environment [3]