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]
TONGCHENGTRAVEL(00780.HK)：STRONG 3Q25 RESULTS