Investment Rating - The report maintains a "Buy" rating for Tongcheng Travel (00780.HK) [1] Core Insights - Q1 2024 performance met expectations with revenue of 3.881 billion yuan, a year-on-year increase of 45.3%, and a net profit attributable to shareholders of 397 million yuan, up 5.0% year-on-year [3] - The company is experiencing robust growth in its other business segments, contributing significantly to revenue [3] - The core OTA segment showed stable performance with transportation and accommodation bookings generating revenues of 1.737 billion yuan and 965 million yuan, respectively, reflecting year-on-year increases of 25.6% and 15.6% [3] - The company is expanding its international travel market, with international ticket sales and overnight stays increasing by 260% and 150% year-on-year, respectively [3] - The acquisition of Tongcheng Travel Industry and Hainan Scenic Area Company has driven growth in other business revenues, totaling 1.165 billion yuan in Q1 2024 [3] Financial Summary - Total revenue for 2022 was 6.585 billion yuan, with projections of 11.896 billion yuan for 2023 and 17.380 billion yuan for 2024, indicating a year-on-year growth of 80.67% for 2023 and 46.10% for 2024 [2] - Net profit attributable to shareholders is expected to reach 2.172 billion yuan in 2024, up 39.74% from 2023 [2] - The report forecasts earnings per share (EPS) of 0.95 yuan for 2024, with a price-to-earnings (P/E) ratio of 16.79 [2][4] - The company’s gross margin for Q4 2023 was 65.0%, reflecting a structural decline due to the lower margin of the newly added vacation business segment [3] User Engagement and Market Strategy - The number of annual paying users reached 229 million, with a 14.3% year-on-year increase, and total service users reached 1.827 billion, up 57.4% year-on-year [3] - The average purchase frequency per user has increased to 8.0 times, indicating a growing trend in user engagement [3] - The company is focusing on penetrating lower-tier markets, with 87% of registered users residing outside first-tier cities [3]
同程旅行：2024Q1业绩点评：业绩符合预期，其他业务高速增长