Core Viewpoint - Tongcheng Travel (00780) reported strong financial results for the first half of 2025, leading to a stock price increase of over 7% following the earnings announcement [1] Financial Performance - In the first half of 2025, Tongcheng Travel achieved revenue of 9.05 billion yuan, representing a year-on-year growth of 11.5% [1] - Adjusted EBITDA for the same period was 2.34 billion yuan, showing a significant increase of 35.2% year-on-year [1] - The adjusted net profit reached 1.56 billion yuan [1] Revenue Breakdown - Other income, including online vacation services, amounted to 1.36 billion yuan, reflecting a year-on-year growth of 24.1% [1] Quarterly Performance - In Q2, Tongcheng Travel's revenue was 4.7 billion yuan, which is a 10.0% increase compared to the previous year, slightly exceeding the expected 4.6 billion yuan by approximately 0.7% [1] - Operating profit for Q2 was 810 million yuan, surpassing expectations by 11.4% [1] - The adjusted net profit for the quarter was 770 million yuan, exceeding expectations by 3.3% [1] Strategic Focus - The company is focusing on three strategic directions: enhancing user value, expanding outbound tourism business, and hotel management business expansion, which may lead to long-term revenue growth and stable profit release [1]

Core Insights - Tongcheng Travel (00780) shares rose over 7% post-earnings report, currently trading at HKD 20.44 with a transaction volume of HKD 198 million [1] Financial Performance - For the first half of 2025, Tongcheng Travel reported revenue of CNY 9.05 billion, a year-on-year increase of 11.5% [1] - Adjusted EBITDA for the same period was CNY 2.34 billion, reflecting a growth of 35.2% year-on-year [1] - Adjusted net profit reached CNY 1.56 billion [1] - Other revenues, including online vacation services, amounted to CNY 1.36 billion, up 24.1% year-on-year [1] Quarterly Highlights - In Q2, Tongcheng Travel's revenue was CNY 4.7 billion, a 10.0% increase year-on-year, slightly exceeding the expected CNY 4.6 billion by approximately 0.7% [1] - Operating profit for the quarter was CNY 810 million, surpassing expectations by 11.4% [1] - The core OTA business showed improved operating profit margins, driven by enhanced subsidy efficiency and increased operational leverage [1] - Adjusted net profit for the quarter was CNY 770 million, exceeding expectations by 3.3% [1] Strategic Focus - The company is optimistic about the resilience of domestic tourism demand and is focusing on three strategic areas: deepening user value, expanding outbound tourism business, and hotel management business expansion [1] - These strategies are expected to drive long-term revenue growth and stable profit release [1]