Investment Rating - The report maintains a "Buy" rating for the company with a target price raised to HKD 22, indicating a potential upside of 17% from the current price of HKD 18.78 [3][5]. Core Insights - The company's overall performance exceeded expectations, with Q4 2023 revenue reaching RMB 3.14 billion, a year-on-year increase of 110%, and a 61% increase compared to the same period in 2019, surpassing market expectations by 11% [2]. - Adjusted net profit for Q4 2023 was RMB 480 million, exceeding market expectations by 1.9%, with an adjusted net profit margin of 15.3% [2]. - The company announced a dividend of HKD 0.15 per share [2]. Revenue and Growth - Q4 2023 saw strong travel demand, with transaction volume reaching RMB 53.5 billion, a year-on-year increase of 111%, and a 30% increase compared to 2019 [2]. - The average monthly paying users grew by 54% year-on-year to 37.5 million, solidifying the company's market position in lower-tier cities [2]. - Accommodation booking revenue was RMB 880 million, up 73% year-on-year, driven by diversified accommodation scenarios and cross-selling opportunities in transportation services [2]. - Transportation ticketing revenue reached RMB 1.47 billion, a 95% year-on-year increase, attributed to increased ticket volume and value-added services [2]. - Other revenue surged by 236% year-on-year to RMB 790 million, mainly from tourism services, advertising, and hotel management services [2]. Market Outlook - The report highlights strong travel demand during the Spring Festival, with national travel volume increasing by 34% year-on-year and total domestic travel expenditure rising by 47% [2]. - The company is optimistic about the 2024 tourism industry, noting trends in experiential consumption among younger consumers [2]. - The company completed a 100% acquisition of Tongcheng Travel, which is expected to contribute an additional RMB 2.7 billion in revenue in 2024 [2]. Financial Projections - The report forecasts a 45% year-on-year revenue growth for 2024, reaching RMB 17.2 billion, with adjusted net profit expected to grow by 16% to RMB 2.5 billion [3]. - The adjusted profit margin is projected to be 14.8% for 2024 [3].
业务延续强劲增长，深耕产业链业务拓展