Huachuang Securities·2024-09-02 05:59Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 492 HKD, indicating a potential upside of 33% from the current price of 370.2 HKD [2]. Core Views - The company reported revenue of 12.77 billion HKD for Q2 2024, a year-on-year increase of 13.6%, with adjusted operating profit of 4.23 billion HKD, up 21.7% year-on-year. Net profit surged to 3.89 billion HKD, reflecting a 500% increase, while non-GAAP net profit attributable to shareholders reached 4.98 billion HKD, up 45.2% year-on-year [2]. - The company has seen robust growth in outbound travel, with overseas bookings recovering to 120% and 110% of 2019 levels during the May Day and Dragon Boat Festival holidays, respectively [2]. - The report highlights a significant optimization in R&D expenses, with R&D, marketing, and management expense ratios at 23.4%, 22.2%, and 8.4%, respectively [2]. - The company is expected to maintain a growth rate faster than the industry, driven by increased online penetration and customer acquisition advantages [2]. Financial Performance Summary - For Q2 2024, the company achieved revenue of 12.77 billion HKD, with the accommodation segment growing by 19.9% to 5.14 billion HKD, transportation revenue at 4.87 billion HKD, up 1.2%, and vacation services at 1.03 billion HKD, up 42.0% [2]. - The company’s gross margin stood at 81.9%, with an adjusted operating profit margin of 33.1%, reflecting improvements in operational efficiency [2]. - The financial forecast for 2024-2026 estimates revenues of 52.0 billion HKD, 59.5 billion HKD, and 67.4 billion HKD, respectively, with non-GAAP net profits projected at 17.0 billion HKD, 19.5 billion HKD, and 22.2 billion HKD [3].