Core Insights - The National Federation of Industry and Commerce released the lists of the top 500 private enterprises in China for 2025, with Jiangsu province having 90, 82, and 15 companies in the respective categories of overall private enterprises, manufacturing private enterprises, and service private enterprises, showing increases from the previous year [1][2]. Group 1: Jiangsu's Economic Contribution - Jiangsu's private economy contributed a value-added of 7.98 trillion yuan in 2024, accounting for 58.2% of the province's GDP, highlighting its significant role in the economy [1]. - Jiangsu ranked second nationally in the number of companies included in the 2025 top 500 private enterprises list, with 71 from southern Jiangsu, 11 from central Jiangsu, and 8 from northern Jiangsu [1]. Group 2: Company Performance - Among the top 500 private enterprises, 11 companies in Jiangsu reported revenues exceeding 100 billion yuan, an increase of one from the previous year [1]. - The total R&D investment of the listed companies reached 75.17 billion yuan, with 83,000 R&D personnel and 24,000 effective domestic invention patents, representing increases of 7.5%, 5.1%, and 32.6% respectively compared to the previous year [1]. Group 3: Tax Contributions and Employment - The total tax contribution of the listed companies amounted to 135.36 billion yuan, with 28 companies paying over 1 billion yuan in taxes annually [1]. - The total employment generated by these companies reached 1.306 million [1].

Core Viewpoint - Tongcheng Travel has achieved an ESG rating of AAA from MSCI, placing it in the top 5% globally, reflecting its strong commitment to sustainable practices and governance [1][2]. Group 1: ESG Performance - Tongcheng Travel has integrated ESG practices into its business operations and culture, aiming for long-term sustainable development [2]. - The company emphasizes a "people-oriented" management philosophy, viewing talent as its most valuable resource and striving to create a diverse, equitable, and inclusive workplace [2]. - Tongcheng Travel has been recognized for its ESG management and long-term investment value, being included in the S&P Global "Sustainability Yearbook (China Edition)" for three consecutive years [3]. Group 2: Technological Advancements - Since 2025, generative AI technology has significantly impacted both supply and demand in the travel industry, with Tongcheng Travel leveraging AI to enhance supply chain capabilities and user experience [2]. - In March 2025, Tongcheng Travel's subsidiary, Lvzhi Technology, announced the full integration of AI models like DeepSeek and Alibaba Tongyi Qianwen into its hotel management system, achieving a 50% efficiency improvement in operational processes [2]. - The company has accelerated the iteration of AI products, launching the upgraded "Chengxin AI" model, now known as DeepTrip, which facilitates a seamless user experience from trip planning to product booking [3].

2025年以来，生成式AI技术对于旅游行业的供需两端产生了深刻影响。同程旅行以AI为抓手，不断强 化供应链赋能和用户体验提升。2025年3月，同程旅行旗下的旅智科技宣布旅智云全面接入DeepSeek、 阿里通义千问等AI大模型，成为酒店管理系统领域首个深度整合通用人工智能技术的标杆案例。根据 旅智科技内测数据显示，接入AI大模型后，包括订单查询、前台排房、退房等运营流程综合提效50%。 此外，在面向用户侧的AI产品方面，同程旅行也加快了迭代更新的步伐。继2024年打造在线旅游行业 首个完成双重备案的大模型——"程心AI"后，2025年3月，同程旅行将"程心AI"与DeepSeek进行技术融 合，并发布"程心AI"升级版——DeepTrip。升级后的"程心AI"，可以帮助用户更顺畅地完成从行程计划 到产品预订的全流程，实现从"AI推荐"到"AI决策执行+预订执行"的闭环。今年二季度，DeepTrip的活 跃度环比大幅提升，并实现从行程规划到预订转化的规模化。 对上市公司而言，更高的ESG评级是上市公司稳健经营、规范治理的价值体现。近年来，同程旅行在 ESG管理水平和长期投资价值等方面，得到了全球资本市场的充分肯 ...

Group 1 - MSCI has upgraded Tongcheng Travel's ESG rating to AAA, placing it in the top 5% globally [1] - Tongcheng Travel integrates ESG practices into its business operations and culture, focusing on sustainable development and a people-oriented approach [2] - The company emphasizes the importance of talent and aims to create a diverse, equal, and inclusive workplace [2] Group 2 - Since 2025, generative AI technology has significantly impacted both supply and demand in the travel industry, with Tongcheng Travel leveraging AI to enhance supply chain capabilities and user experience [2] - Tongcheng Travel's subsidiary, Lvzhi Technology, has integrated AI models like DeepSeek and Alibaba's Tongyi Qianwen into its hotel management system, improving operational efficiency by 50% [2] - The company has accelerated the iteration of AI products, launching the upgraded "Chengxin AI" called DeepTrip, which streamlines the entire process from trip planning to product booking [3] Group 3 - Higher ESG ratings reflect the company's robust operations and governance, gaining recognition in global capital markets for its ESG management and long-term investment value [3] - Tongcheng Travel has been included in the S&P Global Sustainable Development Yearbook (China Edition) for three consecutive years and received the "Best Progress in Industry" award [3] - The company plans to continue enhancing operational efficiency and fostering closer partnerships while adhering to sustainable development principles [3]

Core Viewpoint - Tongcheng Travel has achieved an ESG rating of AAA from MSCI, placing it in the top 5% globally, reflecting its strong commitment to environmental, social, and governance practices [1]. Group 1: ESG Performance - As a leading player in the domestic tourism market, Tongcheng Travel integrates ESG practices into its business operations and culture to achieve long-term sustainable development [2]. - The company emphasizes a "people-oriented" management philosophy, viewing talent as its most valuable resource and striving to create a diverse, equitable, and inclusive workplace [2]. - Tongcheng Travel has been recognized for its ESG management, being included in the S&P Global "Sustainability Yearbook (China Edition)" for three consecutive years and receiving the "Best Progress in Industry" award [3]. Group 2: Technological Innovation - Since 2025, generative AI technology has significantly impacted both supply and demand in the tourism industry, with Tongcheng Travel leveraging AI to enhance supply chain capabilities and user experience [2]. - In March 2025, Tongcheng Travel's subsidiary, Lvzhi Technology, announced the full integration of AI models like DeepSeek and Alibaba's Tongyi Qianwen into its hotel management system, achieving a 50% efficiency improvement in operational processes [2]. - The company accelerated the iteration of its AI products, launching the upgraded version of "Chengxin AI" called "DeepTrip," which facilitates a seamless user experience from itinerary planning to product booking [3]. Group 3: Future Outlook - Tongcheng Travel plans to continue its commitment to the value of "customer first" by enhancing operational efficiency and fostering closer partnerships with collaborators [3]. - The company aims to work collaboratively with employees to promote sustainable development principles [3].

Core Viewpoint - The company reported a robust performance in Q2 2025, with revenue of 4.669 billion yuan, a year-on-year increase of 10.0%, and an adjusted net profit of 775 million yuan, up 18.0% year-on-year, indicating significant long-term competitive advantages and maintaining a buy rating [1][2]. Financial Performance - In Q2 2025, the company achieved revenue of 4.669 billion yuan, a year-on-year increase of 10.0%, and an adjusted EBITDA of 1.185 billion yuan, up 29.7% year-on-year [1]. - The adjusted net profit for Q2 was 775 million yuan, reflecting an 18.0% year-on-year growth [1]. - The core OTA business generated revenue of 4.01 billion yuan, a year-on-year increase of 13.7% [1]. Business Segmentation - Revenue from various business segments in Q2 2025 included accommodation at 1.37 billion yuan (+15.2%), transportation ticketing at 1.88 billion yuan (+7.9%), vacation services at 660 million yuan (-8.0%), and other services at 760 million yuan (+27.5%) [1]. - The international flight ticketing business reached a historical high, with a nearly 30% year-on-year increase [1]. - The hotel management platform operated over 2,700 hotels, with an additional 1,500 hotels in preparation [1]. Cost Management and Profitability - The gross margin for Q2 2025 was 65.0%, an increase of 0.4 percentage points year-on-year [2]. - The management, R&D, and sales expense ratios were 4.8%, 10.5%, and 32.8%, showing reductions of 0.1, 0.5, and 2.3 percentage points year-on-year, respectively [2]. - The OTA operating profit margin was 26.7%, up 2.4 percentage points year-on-year, while the adjusted net profit margin was 16.6%, an increase of 1.1 percentage points [2]. User Growth and Engagement - 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 10.2% year-on-year [2]. - The total service users over the past 12 months amounted to 1.99 billion, reflecting a 7.2% year-on-year growth [2]. - The company continues to focus on operational efficiency within the WeChat ecosystem and has launched interactive marketing campaigns targeting younger users to enhance brand appeal [2]. Valuation Outlook - The company is expected to benefit from a high-growth domestic travel market and cross-border travel, with strong performance projected for the full year [2]. - Forecasted net profits for 2025-2027 are 2.707 billion, 3.369 billion, and 4.082 billion yuan, corresponding to P/E ratios of 17.0, 13.7, and 11.3 times, respectively [2]. - Adjusted net profits for the same period are projected at 3.312 billion, 3.979 billion, and 4.797 billion yuan, with adjusted P/E ratios of 13.9, 11.5, and 9.6 times, respectively, maintaining a buy rating [2].

Key Insights - The report highlights a selection of stocks for August, including companies like SF Holding, Satellite Chemical, and Anji Technology, indicating potential investment opportunities in these firms [1] - The report emphasizes the steady growth of Tongcheng Travel, with Q2 2025 revenue reaching 4.669 billion yuan, a year-on-year increase of 10.0%, and an adjusted net profit of 775 million yuan, up 18.0% [3][8] - Nanya Technology's performance in Q2 2025 shows significant growth, with revenue of 2.305 billion yuan, a year-on-year increase of 43.06%, and a net profit of 87 million yuan, up 57.69% [13][14] - East China Pharmaceutical's revenue for the first half of 2025 was 21.675 billion yuan, a 3.39% increase year-on-year, with a net profit of 1.815 billion yuan, up 7.01% [18][19] Industry Performance - The report provides an overview of industry performance, with the telecommunications sector leading with a 4.85% increase, followed by non-ferrous metals at 4.63% and real estate at 3.32% [4] - The Shanghai Composite Index closed at 3883.56, reflecting a 1.51% increase, while the Shenzhen Component Index rose by 2.26% to 12441.07 [4] Company-Specific Highlights - Tongcheng Travel's core OTA business showed robust growth, with Q2 2025 OTA revenue reaching 4.01 billion yuan, a 13.7% increase year-on-year [9] - Nanya Technology's high-end product demand is driven by AI applications, with significant growth in high-end copper-clad laminate sales [15][16] - East China Pharmaceutical's innovative products are entering a harvest phase, with a notable increase in revenue from innovative products, reaching 1.084 billion yuan, a 59% year-on-year growth [20][21]

Investment Rating - The report maintains a "Buy" rating for the company, with a market price of HKD 21.42 and a sector rating of "Outperform" [1][3]. Core Insights - The company's core OTA (Online Travel Agency) business shows steady growth, with a revenue of RMB 4.669 billion in Q2 2025, representing a year-on-year increase of 10.0%. The adjusted net profit reached RMB 775 million, up 18.0% year-on-year. The report emphasizes the company's significant long-term competitive advantages [3][5][8]. Summary by Sections Financial Performance - In Q2 2025, the company achieved a revenue of RMB 4.669 billion, with an adjusted EBITDA of RMB 1.185 billion, reflecting a year-on-year growth of 29.7%. The adjusted net profit was RMB 775 million, up 18.0% year-on-year. The core OTA business generated revenue of RMB 4.01 billion, a 13.7% increase year-on-year [3][8]. - The company's gross margin stood at 65.0%, an increase of 0.4 percentage points year-on-year. Cost optimization led to improved profit margins, with the OTA operating profit margin at 26.7%, up 2.4 percentage points year-on-year [8]. Business Segments - Revenue from the accommodation, transportation ticketing, vacation, and other segments in Q2 2025 was RMB 1.37 billion, RMB 1.88 billion, RMB 660 million, and RMB 760 million, respectively. The transportation segment saw a nearly 30% year-on-year increase in international ticket volume [8]. Market Outlook - The domestic travel market remains robust, with cross-border travel continuing to grow. The company is well-positioned to benefit from the industry's growth in lower-tier markets and is actively expanding its business [5][8]. - The report projects the company's net profit for 2025-2027 to be RMB 2.707 billion, RMB 3.369 billion, and RMB 4.082 billion, with corresponding P/E ratios of 17.0, 13.7, and 11.3 times [5][7].

Performance Review - In Q2 2025, the company achieved an adjusted net profit of 775 million yuan, with a net profit margin of 16.6%, exceeding the upper guidance limit [1] - Total revenue for Q2 2025 was 4.669 billion yuan, a year-on-year increase of 10%, with core OTA revenue at 4.008 billion yuan, up 14% year-on-year [1] - Accommodation booking revenue reached 1.371 billion yuan, growing 15% year-on-year, driven by robust business volume and improved monetization capabilities [1] - Transportation ticketing revenue was 1.881 billion yuan, an 8% year-on-year increase, with international ticket sales reaching a historical high, up nearly 30% [1] - Other business revenue was 755 million yuan, a significant increase of 28% year-on-year, mainly due to strong performance in hotel management [1] - Vacation business revenue declined to 662 million yuan, down 8% year-on-year, primarily affected by safety issues in Southeast Asia [1] User Acquisition - In Q2 2025, the monthly paid user count reached 46.5 million, a year-on-year growth of 9.2% [2] - Annual paid users increased by 10.2% to 252 million, with cumulative service instances reaching 1.991 billion, up 7.2% year-on-year [2] - The company's self-owned app DAU showed strong growth, reaching a historical peak during the May Day holiday [2] - The company focuses on increasing purchase frequency and ARPU, adjusting marketing budgets to prioritize independent app users, who spend 2.5 times more than WeChat mini-program users [2] Profit Forecast - The company is positioned as a leading OTA platform in China with low customer acquisition costs and enhanced monetization of long-tail traffic [3] - Revenue projections for 2025-2027 are 20.6 billion, 23.1 billion, and 25.9 billion yuan, representing year-on-year growth of 19%, 12%, and 12% respectively [3] - GAAP net profit forecasts for the same period are 2.6 billion, 3.1 billion, and 3.7 billion yuan, with year-on-year growth of 32%, 18%, and 19% respectively [3] - NON-GAAP net profit estimates are 3.4 billion, 3.9 billion, and 4.4 billion yuan, with year-on-year growth of 21%, 15%, and 15% respectively [3]

Macro Insights - The economic growth rate in August is expected to be supported by exports and consumption policies, despite a significant slowdown in the real estate sector, with a target of 5% annual growth remaining achievable [1][15][12] - The industrial added value in July grew by 5.7% year-on-year, with the manufacturing sector showing resilience, particularly in high-tech products and equipment manufacturing [12][13] - Fixed asset investment growth slowed to 1.6% year-on-year in the first seven months, primarily due to a decline in real estate investment, which fell by 12% [13][14] Strategy Insights - Current channels for resident capital entering the market include increasing financing balances and active personal investor accounts, leading to a positive feedback loop in the market [2] - The "anti-involution" market trend can be analyzed through policy expectations and real-world transmission, indicating a shift from theme-driven to profit-driven market dynamics [2] - The technology and small-cap sectors are expected to continue outperforming as more external funds enter the market [2] Industry Reports - The consumer electronics sector is anticipated to see significant opportunities with the upcoming release of new products, particularly in AI-related applications [8] - The coal mining industry is experiencing a continuous improvement in fundamentals, with the price of thermal coal expected to rise [8] - The healthcare sector, particularly innovative drugs, is projected to maintain a positive outlook due to improved profitability [8]