Core Insights - Tongcheng Travel's Q2 2025 revenue increased by 10% to 4.67 billion yuan, slightly above market expectations by 0.6%, driven by better-than-expected hotel and other revenues [1] - Non-IFRS net profit reached 770 million yuan, exceeding market expectations by 3.3%, with a Non-IFRS net profit margin of 16.6%, attributed to improved marketing efficiency [1] Revenue Growth - Domestic hotel business outperformed the industry, with Q2 2025 Average Daily Rate (ADR) showing positive year-on-year growth, reflecting changes in consumer habits; the share of room nights from three-star hotels increased by 4 percentage points year-on-year [1] - The company expects Q3 2025 hotel room nights to grow by 10-15% year-on-year, with ADR showing low single-digit growth, anticipating a 13% year-on-year increase in hotel revenue [1] - International flight ticket volume increased by over 30% in Q2 2025, with international ticket revenue accounting for over 6% of transportation revenue, a 2 percentage point increase year-on-year [1] Future Growth Engines - The outbound business and hotel management are identified as dual growth engines; the company is tapping into the outbound travel demand from lower-tier markets and aims for international business to break even by year-end [2] - The hotel management business is expanding, with over 2,700 hotels currently operating on the Yilong hotel technology platform and another 1,500 in preparation, ranking 8th in the China Hotel Association's list for 2024 [2] Profitability Improvement - Core OTA operating profit reached 1.07 billion yuan in Q2 2025, with an operating profit margin of 26.7%, up from 24.3% in the same period last year [2] - The company anticipates continued improvement in profit margins due to enhanced marketing efficiency, operational leverage, and the maturation of international business [2] Earnings Forecast and Valuation - The company maintains its revenue and profit expectations for 2025/2026, with a target price of 23 HKD, corresponding to 15x/12x 2025e and 2026e Non-IFRS P/E, indicating a potential upside of 17% [2]

Core Insights - The company reported a revenue of 9.05 billion yuan for the first half of 2025, representing a year-on-year increase of 11.5% [1] - Adjusted EBITDA for the same period was 2.34 billion yuan, up 35.2% year-on-year, with an adjusted EBITDA margin of 25.9%, an increase of 4.5 percentage points [1] - The online travel platform business continues to grow rapidly, with significant contributions from hotel management services [1][2] Financial Performance - In Q2 2025, the company achieved a revenue of 4.67 billion yuan, a 10.0% increase year-on-year, and an adjusted EBITDA of 1.19 billion yuan, up 29.7% year-on-year [1] - Revenue from accommodation bookings, transportation tickets, and other services in Q2 2025 was 1.37 billion yuan, 1.88 billion yuan, and 760 million yuan respectively, with year-on-year growth rates of 15.2%, 7.9%, and 27.5% [1] - The hotel management business has over 2,700 operating hotels and a pipeline of 1,500 hotels as of Q2 2025 [1] User Growth and Market Expansion - The company has 252 million annual paying users, a 10.2% increase year-on-year, and 1.99 billion cumulative service users, up 7.2% year-on-year [2] - Among new paying users on the WeChat platform, 69.0% are from non-first-tier cities, reflecting a 1.0 percentage point increase from Q1 2025 [2] - The AI trip planning tool, DeepTrip, enhances user experience by simplifying decision-making and reducing the time from search to booking [2] Business Outlook - The company aims to deepen its core online travel platform business and increase market share [2] - Plans to develop outbound travel services to enhance international market presence [2] - The hotel management business is expected to become a significant growth driver for the company [2] Profit Forecast - Projected net profits for 2025-2027 are 2.6 billion yuan, 3.24 billion yuan, and 3.9 billion yuan, with year-on-year growth rates of 31.9%, 24.3%, and 20.7% respectively [2]

Core Viewpoint - The company demonstrated robust revenue growth in Q2 2025, with adjusted net profit increasing by over 18% year-on-year, indicating a focus on profitability and operational efficiency [1][2]. Revenue Performance - Q2 revenue reached 4.669 billion yuan, a 10.0% increase year-on-year, while the net profit attributable to shareholders was 642 million yuan, up 48.0% [1]. - The OTA segment saw a revenue increase of 13.7%, with an operating profit margin (OPM) of 24.7%, reflecting a 2.4 percentage point improvement [1]. - The company experienced a strategic contraction in packaged business due to demand pressures in Southeast Asia, resulting in an 8.0% decline in revenue from this segment, but maintaining a positive profit contribution [1][2]. User and ARPU Growth - The company achieved a healthy increase in paid users and Average Revenue Per User (ARPU), with cumulative paid users reaching 250 million, a 10.2% increase, and ARPU at 72.2 yuan, up 13.9% [2]. Profitability and Cost Management - The gross profit margin improved by 0.4 percentage points in Q2, driven by enhanced monetization rates in the OTA business and efficiencies gained through generative AI [2]. - The sales expense ratio decreased by 2.4 percentage points, indicating a focus on balancing marketing investment returns, with expectations of breakeven in international business by 2025 [2][3]. - R&D and management expense ratios also saw a decline, with management projecting an overall increase in core business profit margins for the year [2]. Strategic Focus and Industry Positioning - The management emphasized the importance of the OTA core strategy, aiming to capitalize on domestic consumption trends while enhancing international business monetization and cross-selling opportunities [3]. - The company has positioned itself among the top 10 hotel management companies in China, with over 2,700 hotels operational and a target of 3,000 by year-end [3]. - Recent acquisitions, including a proposed 2.49 billion yuan purchase of Wanda Hotel Management, are expected to strengthen the company's market position and operational synergies [3].

Core Insights - The quarterly performance is in line with expectations, with a projected 15% year-on-year growth in core OTA business revenue for Q3, driven by an increase in accommodation night volume and stable ADR [1] - The full-year growth for core OTA business is expected to be 16%, with an operational profit margin improvement of approximately 2 percentage points, primarily due to the company's strategic shift towards enhancing user ARPU and profitability in new businesses such as outbound travel and hotel management [1] - The travel sector is experiencing a contraction in the Southeast Asia region, with a projected 10% year-on-year decline in buyout business revenue, although it remains profitable [1] Financial Performance - For Q2 2025, total revenue increased by 10% year-on-year to 4.7 billion RMB, aligning with market expectations [1] - Core OTA revenue grew by 14%, with accommodation revenue up by 15% due to diversified booking scenarios leading to high single-digit growth in night volume, and ADR showing low single-digit positive growth [1] - Transportation revenue increased by 8%, benefiting from improved monetization rates [1] - The adjusted operational profit margin for core OTA was 27%, up 2.4 percentage points year-on-year, driven by ARPU enhancement, scale effects, improved marketing ROI, and better profitability in new businesses [1] - Overall adjusted net profit rose by 18% year-on-year, exceeding market expectations by 3%, with a corresponding net profit margin of 17%, reflecting a year-on-year improvement of approximately 1 percentage point [1] User Metrics - User base continues to grow steadily, with the number of annual paying users reaching a record high of 252 million, a 10% year-on-year increase [1] - The average monthly paying user count increased by 9% to 46.4 million [1] - The company's own app remains a key channel for acquiring new users, with daily active users (DAU) reaching a historical peak before the May Day holiday, contributing approximately 8% to core OTA revenue [1]

Core Viewpoint - Tongcheng Travel reported solid financial results for 2Q25, with revenue and adjusted net profit showing year-on-year growth, indicating a positive outlook for the company and the online travel industry [1][2]. Financial Performance - 2Q25 revenue reached Rmb4.67 billion, reflecting a 10% year-on-year increase, while adjusted net profit was Rmb775 million, up 18% year-on-year, aligning with expectations [1]. - The company maintains its earnings per share (EPS) forecasts of Rmb1.41 for 2025, Rmb1.57 for 2026, and Rmb1.74 for 2027 [1]. Operational Highlights - Core OTA revenue increased by 14% year-on-year, with accommodation reservation revenue rising by 15% year-on-year [2]. - The average daily room nights reached a record high, driven by the exploration of new accommodation booking scenarios [2]. - The average daily rate (ADR) showed positive year-on-year growth due to a higher proportion of three-star and above hotels [2]. - Transportation ticketing revenue grew by 8% year-on-year, while revenue from other businesses surged by 28% year-on-year, primarily from hotel management [2]. - The number of annual paying users (APU) increased by 10% year-on-year to 251.7 million, marking a record high [2]. Outbound Travel Business - The outbound travel segment is projected to turn profitable this year, with outbound air tickets contributing approximately 6% to transportation revenue [3]. - The volume of international air tickets in 2Q25 rose nearly 30% year-on-year, achieving a record high [3]. Market Outlook - The online travel industry is expected to experience stable growth, with Tongcheng Travel identified as a high-certainty target in domestic demand consumption [4]. - Improvements in marketing efficiency and the expansion of outbound travel are anticipated to enhance margins, alongside growth from the hotel management business [4].

Core Viewpoint - Haitong International's report indicates that Tongcheng Travel (00780) achieved a 10% year-on-year revenue growth in Q2, aligning with market expectations and the company's median guidance [1] - Adjusted net profit increased by 18% year-on-year, exceeding expectations by 3.4% [1] Group 1: Financial Performance - Q2 revenue reached 55.14 billion RMB, reflecting a 10% year-on-year growth [1] - Adjusted net profit for Q2 is projected at 10.47 billion RMB [1] - Full-year adjusted net profit is anticipated to be 33.64 billion RMB [1] Group 2: Future Outlook - The average hotel price trend is improving in Q3, with expectations for Tongcheng Travel's hotel business and accommodation nights to grow slightly above industry levels [1] - Traffic ticketing business is expected to align more closely with industry trends [1] - Q3 growth projections include a 14% increase in hotel business and a 10% increase in traffic ticketing business [1] Group 3: Rating and Target Price - Haitong International maintains a "Outperform" rating for Tongcheng Travel [1] - Target price has been raised from 27 HKD to 30 HKD [1]

Core Viewpoint - Haitong International's report indicates that Tongcheng Travel (00780) achieved a 10% year-on-year revenue growth in Q2, aligning with market expectations and the company's guidance median [1] - Adjusted net profit increased by 18% year-on-year, exceeding expectations by 3.4% [1] Financial Performance - Q2 revenue reached 55.14 billion RMB, reflecting a 10% year-on-year growth [1] - Adjusted net profit for Q2 is projected at 10.47 billion RMB, with an annual forecast of 33.64 billion RMB [1] Future Outlook - The average hotel price trend is improving in Q3, with expectations for Tongcheng Travel's hotel business and accommodation nights to grow slightly above industry levels [1] - Anticipated growth rates for Q3 include 14% for hotel business and 10% for transportation ticketing [1] - Other revenue sources are expected to maintain a strong growth momentum [1] Rating and Target Price - Haitong International maintains a "Outperform" rating for Tongcheng Travel, raising the target price from 27 HKD to 30 HKD [1]

Core Viewpoint - Haitong International's report indicates that Tongcheng Travel's revenue for the second quarter increased by 10% year-on-year, aligning with market expectations and within the company's guidance median [1] - Adjusted net profit rose by 18% year-on-year, exceeding expectations by 3.4% [1] Company Outlook - For the second half of the year, the average room rate trend in the hotel industry is improving, with expectations for hotel business and accommodation nights to grow slightly, surpassing industry levels [1] - The transportation ticketing business is expected to align more closely with industry trends [1] Investment Rating - Haitong International maintains a "Outperform" rating for Tongcheng Travel, raising the target price from HKD 27 to HKD 30 [1]

建银国际发表研报指，同程旅行第二季业绩表现稳健，收入符合预期，经调整净利润略胜预期。展望 2025年第三季，该行预期酒店收入势头将维持稳定。高利润率的酒店业务贡献上升，加上营销效率及营 运杠杆改善，将继续推动利润率提升，目前预测第三季收入将继续按年增长10%至55亿元，经调整后净 利润将按年增长17%至10.6亿元，目标价从25.9港元上调至27.2港元，维持"跑赢大市"评级。 ...

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