Investment Rating - The report maintains a "Buy" rating for Tongcheng Travel (0780.HK) [2][3] Core Views - Tongcheng Travel's Q1 2024 financial performance shows significant growth, with revenue reaching 3.866 billion RMB, a year-on-year increase of 49.5%. Gross profit was 2.514 billion RMB, up 29.57%, while operating profit slightly decreased by 2.23% to 455 million RMB. The net profit for the period was 400 million RMB, reflecting a 5.6% increase year-on-year [2] - The company continues to see steady growth in paid users and service interactions, with a total of 229 million paid users, a 14.3% increase year-on-year, and cumulative service interactions reaching 1.827 billion, up 57.4% [2] - The report highlights the company's focus on non-first-tier cities as a key growth area, with over 87% of registered users residing in these areas. The company effectively utilizes traffic strategies and operational capabilities to tap into the mass market [2] Financial Performance Summary - For Q1 2024, the core online travel platform generated revenue of 964 million RMB, a 15.63% increase year-on-year. Transportation ticketing revenue was 1.737 billion RMB, up 25.59%, while other business revenue increased by 36.02% to 502 million RMB. Additionally, the newly added vacation business generated 663 million RMB in revenue [2] - The report notes a significant increase in sales costs and marketing expenses, with sales costs rising by 109.44% and marketing costs increasing by 41.60% year-on-year, primarily due to higher costs associated with vacation services and increased employee benefits [2] - The projected net profit for the company for 2024-2026 is estimated at 2.062 billion RMB, 2.723 billion RMB, and 3.369 billion RMB, respectively, with corresponding PE ratios of 19x, 14x, and 12x [3]
同程旅行：2024年一季报点评：付费用户及服务人次稳步增长，旅游行业高景气催化下成长空间大