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].
同程旅行（00780）：利润率改善持续验证，下沉在线旅游龙头稳健前行