Core Insights - The company reported a revenue of 4.7 billion yuan in Q2 2025, representing a year-over-year increase of 10% [1] - Adjusted net profit reached 780 million yuan, up 18% year-over-year, with an adjusted net profit margin of 16.6%, an increase of 1.1 percentage points [1] Online Travel Platform Performance - The core online travel platform generated revenue of 4 billion yuan in Q2 2025, a 14% year-over-year increase, with an operating profit margin of 26.7%, up 2.4 percentage points [1] - Transportation ticketing revenue was 1.9 billion yuan, an 8% increase year-over-year, with international ticket sales growing nearly 30% [1] - Accommodation bookings revenue reached 1.4 billion yuan, a 15% increase year-over-year, supported by strong international hotel partnerships [1] - Other revenue, primarily from hotel management, was 760 million yuan, a significant 28% increase year-over-year, with over 2,700 hotels currently operating [1] Vacation Business Impact - The vacation business faced challenges due to security issues in Southeast Asia, resulting in a revenue decline of 8% year-over-year to 660 million yuan [2] User Growth and Market Penetration - The average monthly paying user count reached 46.4 million, a 9.2% year-over-year increase, with annual paying users totaling 252 million, up 10.2% [3] - The number of registered users from non-first-tier cities in China exceeded 87%, with 69% of new paying users in Q2 2025 coming from these areas [3] Financial Forecast and Investment Rating - Revenue projections for 2025-2027 are adjusted to 19.3 billion, 21.9 billion, and 24.4 billion yuan, respectively, with net profits of 2.8 billion, 3.2 billion, and 3.7 billion yuan [3] - The company is positioned as a leading OTA platform in lower-tier markets, benefiting from domestic travel demand and international expansion, with a target market value of 60.1 billion yuan for 2026 [3]

Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Insights - The company reported a revenue of 4.669 billion yuan for Q2 2025, representing a year-on-year increase of 10.0%, and an adjusted net profit of 0.775 billion yuan, up 18.0% year-on-year, with an adjusted net profit margin of 16.6%, an increase of 1.1 percentage points year-on-year [1][3]. - The core OTA business showed robust performance with a revenue of 4.008 billion yuan in Q2 2025, a year-on-year increase of 13.7% [2]. - The company is focusing on enhancing its domestic OTA business market share and profitability while cautiously investing in heavy asset sectors [4]. Revenue and Profitability Analysis - The company's gross margin reached 65.0%, up 0.4 percentage points year-on-year, and the core OTA business margin was 26.7%, an increase of 2.4 percentage points year-on-year [3]. - The revenue from accommodation bookings in Q2 2025 was 1.371 billion yuan, up 15.2% year-on-year, driven by new accommodation scenarios such as concerts and sports events [2]. - The international ticketing business volume grew nearly 30% year-on-year, contributing over 6% to total ticketing revenue [2]. Future Projections - The company expects its core OTA business revenue to maintain double-digit year-on-year growth in Q3 2025, benefiting from ADR improvements and the development of hotel management business [4]. - The adjusted net profit forecasts for 2025, 2026, and 2027 are 3.381 billion yuan, 4.063 billion yuan, and 4.651 billion yuan respectively, with corresponding adjusted PE ratios of 13, 11, and 10 times [4][5].

Tongcheng Travel Holdings Limited Stock Code: 0780 Investor Presentation August 2025 Disclaimer The materials used in this investors presentation are being furnished to you for your information only, which shall be kept in strict confidence. No representation or warranty, express or implied, is made by Tongcheng Travel Holdings Limited (the "Company") or its connected person, or any of their respective directors, officers, employees, advisers or representatives as to, and no reliance should be placed on, th ...

Core Viewpoint - Booking Holdings reported strong Q2 results with revenue growth of 16% year-over-year, reaching $6.8 billion, exceeding market expectations of $6.55 billion [1] - The company provided a cautious outlook for Q3, citing economic and geopolitical uncertainties that may impact travel demand [1] Financial Performance - Q2 adjusted earnings per share increased by 32% to $55.40, surpassing the market forecast of $50.38 [1] - Total bookings for Q2 grew by 13% to $46.7 billion, exceeding analyst expectations, with a 7.7% increase in nights booked [1] - Air ticket sales surged by 44% during the same period [1] Future Outlook - Booking adjusted its full-year total bookings growth rate to "high single digits," an improvement from the "mid-high single digits" range provided in April [2] - The CEO highlighted strong growth in Europe and Asia, particularly in Asia where growth reached low double digits [2] - The CFO noted that lower average room rates in the U.S. and shorter stays indicate consumer caution in spending amid the current economic environment [2] Market Context - The report reflects mixed guidance from the U.S. travel industry, with Delta Airlines restoring performance guidance while American Airlines provided a more pessimistic outlook [1] - Despite the cautious outlook, travel demand trends have remained stable, aiding the company's improved full-year guidance [2] - Following the earnings report, Booking's stock fell by 1.87% in after-hours trading, although it has risen 13% year-to-date, outperforming the S&P 500's 8.3% increase [2]

Core Insights - The article highlights the robust growth of China's mobile internet sector, with a total of 1.267 billion monthly active users as of June 2025, reflecting a year-on-year increase of 2.5% [3][11]. - User engagement metrics show an increase in average daily usage time to 7.97 hours and frequency of use to 117.9 times per day, representing growth of 7.8% and 2.6% respectively [3][13]. - The competitive landscape among top internet companies is intensifying, with significant user growth for JD and Douyin at 13% and 12% year-on-year, while Pinduoduo and Baidu show minimal growth [3][18]. Group 1: Mobile Internet Growth - The overall economic environment in China is stabilizing, with digital economy policies boosting consumer confidence and market activity [9][15]. - The mobile internet user base continues to grow steadily, maintaining an increase of over 2% in the first half of 2025 [11]. - The increase in user engagement is primarily driven by younger and elderly demographics, with a notable shift of users towards first-tier cities [15][17]. Group 2: AI Applications - The AI application market is experiencing fierce competition, with 66.7% of the top 30 AI applications coming from the leading internet companies [4][22]. - The growth of AI applications is evident across various sectors, with significant user increases in AI native apps and plugins [4][26]. - The AI search engine segment has shown the largest growth, indicating a shift in user preferences towards AI-integrated solutions [4][32]. Group 3: Advertising and Marketing - The online advertising market in China surpassed 200 billion yuan in the second quarter of 2025, with a year-on-year growth rate of 6.8% [45][53]. - Brands are increasingly investing in marketing to enhance brand image, with a notable rise in advertising expenditure among beauty brands [59][61]. - The "618" shopping festival remains a critical marketing period, significantly impacting advertising spend and consumer engagement [57][63]. Group 4: Industry Insights - The short video industry continues to consolidate around platforms like Douyin and Kuaishou, with Douyin reaching 900 million users [76][78]. - The online travel sector has seen a 4.4% year-on-year increase in user numbers, reaching 156 million users by June 2025 [107][109]. - The integration of technology in the travel sector is enhancing user experiences, with AI and AR applications becoming more prevalent [111][113]. Group 5: Consumer Behavior Trends - The trend of "lightweight travel" is growing, with consumers favoring immediate purchase options and personalized experiences [116][118]. - The rise of "pet-friendly" services in the travel industry reflects changing consumer preferences, particularly among younger demographics [120][122]. - The demand for experiential consumption is driving innovation in the hospitality sector, with hotels offering unique service combinations [114][116].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 26.50 HKD [4][5] Core Insights - The company reported a revenue of 4.4 billion RMB in Q1 2025, representing a year-over-year increase of 13.2%, which aligns with market expectations. Adjusted net profit reached 790 million RMB, exceeding expectations by 8% due to better-than-expected product gross margins driven by refined operational subsidies [1][2] - The company is focusing on enhancing user value and operational efficiency, with a 9.2% year-over-year increase in average monthly paying users in Q1. Additionally, the acquisition of Wanda Hotel Management Company aims to strengthen the company's position in the hotel management sector as a second growth avenue [1][2] - The resilience of domestic tourism demand is expected to support the company's long-term revenue growth and profit release through user value extraction and industry chain integration [1] Revenue and Profitability - The company's Q1 2025 gross profit was 3 billion RMB, a year-over-year increase of 19.8%, with a gross margin of 68.8%, surpassing expectations by 3 percentage points. Operating profit for the quarter was 820 million RMB, reflecting a year-over-year increase of 79.6% [2] - The core OTA business's operating profit exceeded expectations by 1.5%, while the vacation business outperformed expectations by 39.5% [2] Financial Forecast and Valuation - The company is projected to generate revenues of 19.5 billion RMB, 22.2 billion RMB, and 24.9 billion RMB for the years 2025, 2026, and 2027, respectively. Adjusted net profits are expected to be 3.4 billion RMB, 4.1 billion RMB, and 4.8 billion RMB for the same years [3] - The report assigns a price-to-earnings (PE) ratio of 17 for 2025, leading to a target price of 26.5 HKD based on the adjusted net profit forecast [3][9]

Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company's core business is experiencing rapid growth, with a significant increase in profit margins. The revenue for Q1 2025 reached 4.38 billion RMB, representing a year-on-year growth of 13%. The adjusted net profit was 790 million RMB, up 41% year-on-year, exceeding the guidance range [7] - The Core-OTA segment's revenue grew by 18% year-on-year to 3.79 billion RMB, driven by strong performance in transportation ticketing and accommodation bookings, which saw revenues of 2.00 billion RMB and 1.19 billion RMB, respectively [7] - Gross margin improved to 68.7%, up 3.7 percentage points year-on-year, primarily due to the rapid growth of the Core-OTA segment and a decrease in the proportion of lower-margin vacation business [7] - The company has adjusted its profit forecasts upward due to the acquisition of Wanda Hotel Management, expecting net profits of 2.50 billion RMB, 3.01 billion RMB, and 3.52 billion RMB for 2025, 2026, and 2027, respectively [7] Financial Summary - Total revenue projections are 11.896 billion RMB for 2023, 17.341 billion RMB for 2024, and 19.805 billion RMB for 2025, with year-on-year growth rates of 80.67%, 45.77%, and 14.21% respectively [1] - The net profit attributable to shareholders is forecasted to be 1.554 billion RMB for 2023, 1.974 billion RMB for 2024, and 2.504 billion RMB for 2025, with year-on-year growth rates of 1,164.41%, 27.04%, and 26.80% respectively [1] - The latest diluted EPS is projected to be 0.67 RMB for 2023, 0.85 RMB for 2024, and 1.07 RMB for 2025, with corresponding P/E ratios of 28.28, 22.26, and 17.56 [1]

Investment Rating - The report maintains a "Buy" rating for Tongcheng Travel (00780.HK) [1] Core Insights - The company's core business is experiencing rapid growth, with significant improvements in profit margins. The revenue for Q1 2025 reached 4.38 billion RMB, a year-on-year increase of 13%, while the adjusted net profit was 790 million RMB, up 41% year-on-year, exceeding guidance [7] - The Core-OTA segment's revenue grew by 18% to 3.79 billion RMB, driven by strong performance in transportation ticketing and accommodation bookings, which saw revenues of 2.00 billion RMB and 1.19 billion RMB respectively, reflecting year-on-year increases of 15% and 23% [7] - Gross margin improved to 68.7%, up 3.7 percentage points year-on-year, attributed to the rapid growth of the Core-OTA segment and a decrease in the proportion of lower-margin vacation business [7] - The report projects net profits for 2025-2027 to be 2.50 billion RMB, 3.01 billion RMB, and 3.52 billion RMB respectively, with corresponding P/E ratios of 18, 15, and 13 times [7] Financial Projections - Total revenue is forecasted to grow from 11.896 billion RMB in 2023 to 25.418 billion RMB by 2027, with a compound annual growth rate (CAGR) of approximately 13% [1] - The adjusted net profit is expected to increase from 1.554 billion RMB in 2023 to 3.516 billion RMB in 2027, reflecting a CAGR of around 16.99% [1] - The earnings per share (EPS) is projected to rise from 0.67 RMB in 2023 to 1.51 RMB in 2027 [1]

Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Views - The company demonstrated steady revenue growth in Q1 2025, with a revenue of 138.3 billion yuan, representing a year-on-year increase of 16.2%. However, the profit margin decreased compared to the previous year [1][9] - The company is strategically increasing investments in international platforms while maintaining flexibility in marketing strategies, which is expected to enhance growth opportunities [3][12] - The company is leveraging the recovery in inbound tourism and the growth of outbound travel, with significant increases in hotel bookings and international travel reservations [2][10] Revenue Breakdown - In Q1 2025, the company reported accommodation booking revenue of 55.4 billion yuan (+23.2%), transportation ticketing revenue of 54.2 billion yuan (+8.4%), and other income sources showing substantial growth [2][10] - Domestic hotel bookings continue to grow, with a double-digit increase in room nights, while outbound travel bookings have recovered over 120%, outpacing industry capacity growth [2][10] - The international platform saw a booking increase of over 60%, driven by favorable visa policies and a significant rise in inbound tourism [2][10] Profitability Breakdown - The company's gross margin decreased by 0.8 percentage points year-on-year in Q1 2025, attributed to increased personnel costs and strategic investments in international platforms [3][11] - The sales expense ratio for Q1 was 21.4%, which is below the annual budget, indicating a flexible approach to marketing expenditures [3][11] - The company expects profit growth to lag behind revenue growth in the short term due to profit margin fluctuations, with a projected CAGR of 11% for profits versus 15% for revenue over the next three years [12] Financial Forecasts and Valuation - The company forecasts Non-GAAP net profits of 182 billion yuan, 209 billion yuan, and 244 billion yuan for 2025, 2026, and 2027, respectively, with corresponding dynamic PE ratios of 19, 16, and 14 [12][19] - The projected revenue for 2025 is 61.6 billion yuan, reflecting a 15.6% increase from the previous year [4][19] - The company maintains a strong cash flow position and is proposing an additional share buyback plan, indicating a positive outlook for shareholder returns [12][19]

Investment Rating - The investment rating for the company is "Buy" (maintained) for both US and Hong Kong stocks [7]. Core Views - The report expresses optimism about the company's long-term growth potential overseas, highlighting strong performance in both domestic and international travel sectors [1][3]. - The company's revenue for Q1 2025 was 13.9 billion RMB, representing a year-over-year increase of 16.2%, which aligns with market expectations [1][2]. - Adjusted net profit for Q1 2025 was 4.2 billion RMB, showing a year-over-year increase of 3.3%, exceeding expectations by 9.2% due to effective cost control [1][2]. Summary by Sections Q1 2025 Performance - The company reported a revenue of 13.9 billion RMB, which is a 16.2% increase year-over-year, meeting the consensus estimate of 13.8 billion RMB [1]. - Adjusted net profit was 4.2 billion RMB, a 3.3% increase year-over-year, surpassing expectations by 9.2% primarily due to better management of sales, research, and administrative expenses [1][2]. Domestic and International Travel Trends - Domestic travel demand remains resilient, with a double-digit growth in hotel bookings year-over-year, despite a slight decline in average daily rates [3]. - International business continues to grow, with inbound travel orders increasing over 100% year-over-year and outbound ticket and hotel orders exceeding 120% of 2019 levels [3]. Profit Forecast and Valuation - Revenue projections for 2025-2027 are estimated at 61.3 billion, 71.2 billion, and 82.3 billion RMB respectively, with adjusted net profits of 19.3 billion, 22.5 billion, and 26.0 billion RMB [4][11]. - The target price for the US stock is set at $78.00 and for the Hong Kong stock at HKD 559.40, based on a 19x PE ratio for 2025 [4][14].