Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company's Q1 2025 performance exceeded expectations, with total revenue of 13.8 billion (up 16% year-on-year), operating profit of 3.6 billion (margin of 26%), and adjusted net profit of 4.2 billion (up 3% year-on-year) [4][7] - The international business continues to show strong growth, driven by favorable visa-free policies, with overseas OTA platform bookings up 60% year-on-year and inbound tourism bookings more than doubling [4][5] - The company expects revenue for 2025, 2026, and 2027 to be 61.4 billion, 68.5 billion, and 76.5 billion respectively, with year-on-year growth rates of 15%, 12%, and 12% [7] Financial Performance Summary - Q1 2025 revenue breakdown: accommodation booking revenue of 5.5 billion (up 23% year-on-year), transportation ticketing revenue of 5.4 billion (up 8% year-on-year), and other business revenue of 1.4 billion (up 33% year-on-year) [4] - The company anticipates adjusted net profits of 18.7 billion, 21.8 billion, and 24.7 billion for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 3%, 16%, and 14% [7][10] - The total market capitalization is 34.79 billion HKD [9]

Investment Rating - Investment Rating: Buy (Maintained) [1] Core Insights - The company reported Q1 2025 earnings with total revenue of 13.8 billion (up 16% YoY), operating profit of 3.6 billion (margin of 26%), and adjusted net profit of 4.2 billion (up 3% YoY), all exceeding Bloomberg consensus estimates [4][7] - The international business continues to show strong growth, with overseas OTA platform bookings up 60% YoY and inbound tourism bookings more than doubling, driven by strategic investments and favorable visa policies [4][5] - The company expects revenues of 61.4 billion, 68.5 billion, and 76.5 billion for 2025, 2026, and 2027 respectively, with adjusted net profits of 18.7 billion, 21.8 billion, and 24.7 billion for the same years [7][10] Summary by Sections Q1 2025 Performance - Overall revenue reached 13.8 billion (YoY +16%), slightly above consensus estimates by 0.22% - Operating profit was 3.6 billion (margin of 26%), exceeding consensus by 7.34% - Adjusted net profit was 4.2 billion (YoY +3%), surpassing consensus by 8.99% [4] Business Segment Performance - Accommodation booking revenue was 5.5 billion (YoY +23%), above consensus by 1.39% - Transportation ticketing revenue was 5.4 billion (YoY +8%), slightly above consensus by 0.20% - Vacation business revenue was 0.9 billion (YoY +7%), below consensus by 5.90% - Business travel management revenue was 0.6 billion (YoY +12%), above consensus by 4.36% - Other business revenue was 1.4 billion (YoY +33%), slightly below consensus by 0.96% [4] International Business Growth - The overseas OTA platform's booking volume increased by 60% YoY, with inbound tourism bookings more than doubling, largely due to strategic positioning and visa policy benefits - Inbound tourist numbers surged by 40.2% YoY, with 75% of visitors from visa-free countries, particularly from South Korea, Thailand, Malaysia, and Indonesia, where hotel orders increased by over 240% [4][5] Future Revenue and Profit Projections - Expected revenues for 2025, 2026, and 2027 are 61.4 billion, 68.5 billion, and 76.5 billion respectively, with YoY growth rates of +15%, +12%, and +12% - Adjusted net profit projections for the same years are 18.7 billion, 21.8 billion, and 24.7 billion, with YoY growth rates of +3%, +16%, and +14% [7][10]

1Q2025 Performance - Total revenue reached RMB 4.4 billion, a YoY increase of 13.2%[14] - Core OTA revenue was RMB 3.8 billion, up 18.4% YoY[14] - Tourism revenue amounted to RMB 585.0 million[14] - Adjusted net profit was RMB 788.2 million, with a margin of 18.0%[14] - Adjusted EBITDA reached RMB 1.2 billion, representing a margin of 26.5% and a YoY growth of 41.3%[14] - The company served accumulated number of travelers of 1.96 billion, over 50% YoY Growth[11] Operating Metrics - Average Monthly Paying Users (MPUs) reached a record high of 46.5 million, a YoY increase of 9.2%[11] - International room nights sold grew by 7.8% YoY to 247.3 million[11] - International air ticketing volume increased by over 40% YoY[11] User Base and Market Focus - Over 87% of registered users are from non-first-tier cities in China[27] - Over 68% of new paying Weixin users are from non-first-tier cities in China[28] Hotel Management Platform - The company has opened over 2,500 hotels[47] - The hotel management platform covers over 300 cities[47] - The hotel management platform has over 30 million members[47]

Core Viewpoint - The article discusses Ctrip's performance in the first quarter of 2025, highlighting the challenges in the domestic travel market while emphasizing the growth potential in international markets and the strategic importance of AI in the company's future plans [2][5][9]. Group 1: Financial Performance - Ctrip's overall operating revenue for Q1 2025 was 13.85 billion yuan, a year-on-year increase of 16.18%, while net profit attributable to Ctrip's shareholders was 4.277 billion yuan, slightly down by 0.81% [6]. - The accommodation booking business saw a revenue increase of 23% year-on-year, serving as the main driver for revenue growth, while ticketing business revenue growth slowed to 8.4% [6]. Group 2: Domestic Market Challenges - The domestic travel industry remains under pressure, with Huazhu Group reporting a RevPAR of 208 yuan per night, down 4% year-on-year, marking a new low since the pandemic recovery began in 2023 [7]. - The average ticket price for economy class during the peak "Eleventh" holiday last year was 845 yuan, a decrease of 15.1% compared to the same period last year [7]. Group 3: International Market Growth - Ctrip's high growth in accommodation bookings is primarily driven by international business, with inbound tourism bookings increasing by over 100% year-on-year, and hotel bookings from major visa-free countries in the Asia-Pacific region surging by 240% [7]. - Ctrip's overseas business, Trip, is expected to see its revenue share increase from around 10% last year to 18% by 2025, with potential long-term growth reaching 25% to 33% [8]. Group 4: AI Strategy - Ctrip's management has identified AI as a core component of its long-term strategy, with the AI assistant "Trip Genie" increasing average user session duration by approximately 50% [10]. - The AI chatbot and self-service tools handled over 80% of inquiries, saving the company over 10,000 hours of customer service work daily, equivalent to freeing up over 1,000 customer service personnel [10]. Group 5: AI Challenges - Despite the potential of AI, the actual implementation may face challenges, particularly in addressing core pain points in travel planning [11]. - Ctrip has launched the "Ctrip Ask" model for travel planning, but its practical application remains limited [11]. - The company has made executive adjustments to enhance its AI strategy, appointing a Chief Product Officer and a Chief Scientist to lead AI-related product strategies [12].

Core Insights - Tongcheng Travel reported a strong performance in Q1 2025, with revenue reaching 4.377 billion yuan, a year-on-year increase of 13.2%, and an adjusted net profit of 788 million yuan, indicating robust growth momentum [1] - The company served 1.96 billion users annually, with paid users hitting a record high of 247 million, reflecting the increasing consumer demand for travel [1] - The transportation segment saw a revenue increase of 15.2% to 2 billion yuan, while the accommodation segment grew by 23.3% to 1.19 billion yuan, driven by a surge in outbound travel from non-first-tier cities [1] Revenue Breakdown - International flight bookings increased by over 40%, and international hotel night stays rose by over 50%, showcasing significant growth in the international travel sector [1] - The company is focusing on enhancing the "first mile" and "last mile" of travel, creating a diverse product system to meet personalized user needs [1] Innovation and Technology - Tongcheng Travel is investing in AI applications, launching the AI agent DeepTrip, which enhances operational efficiency by closing the loop from "AI recommendation" to "AI decision execution + booking execution" [1] - The CEO emphasized the commitment to deepening engagement in the mass tourism market and actively developing AI capabilities to provide smarter and more efficient travel services [2]

Core Viewpoint - Tongcheng Travel (00780.HK) reported a revenue of RMB 4.377 billion for the three months ending March 31, 2025, representing a year-on-year growth of 13.2% [1] - The company achieved a profit of RMB 679 million, a significant increase of 69.5% year-on-year, driven by continuous revenue growth, optimized marketing strategies, and improved operational efficiency [1] Financial Performance - Adjusted EBITDA for the period was RMB 1.159 billion, reflecting a year-on-year increase of 41.3% [1] - Adjusted net profit rose by 41.1% to RMB 788 million, with an adjusted net profit margin improving significantly to 18.0% [1] User Metrics - The number of annual paying users reached a record high of 247.3 million, up 7.8% year-on-year [1] - Cumulative service users for the twelve months increased by 7.3% to 1,959.5 million [1] - Average monthly paying users in the first quarter grew by 9.2% to 46.5 million, also a new high [1] Market Reach - Over 87% of registered users reside in non-first-tier cities in China as of March 31, 2025 [1] - More than 68% of new paying users on the WeChat platform came from non-first-tier cities during the three months ending March 31, 2025 [1] Service Offerings - The online platform offers approximately 450,000 flight routes operated by over 760 airlines and agents, around 4 million hotel options, 170,000+ car routes, 800+ ferry routes, and tickets for over 10,000 tourist attractions [2]

Core Insights - The company reported a revenue increase of 13.2% year-on-year, rising from RMB 3.866 billion in Q1 2024 to RMB 4.377 billion in Q1 2025 [1] - Adjusted EBITDA grew by 41.3% year-on-year, from RMB 820 million in Q1 2024 to RMB 1.159 billion in Q1 2025, with an EBITDA margin improvement from 21.2% to 26.5% [1] - Adjusted net profit increased by 41.1% year-on-year, from RMB 558 million in Q1 2024 to RMB 788 million in Q1 2025, with a net profit margin rise from 14.4% to 18.0% [1] - The average monthly paying users increased by 9.2% year-on-year, from 42.6 million in Q1 2024 to 46.5 million in Q1 2025 [1]

Core Insights - The company has reported a significant increase in sales of activity products, including flight passes, hotel packages, and theme park tickets, with nearly 2 million items sold to date, representing a substantial year-on-year growth [1] - New and innovative offerings are driving strong growth, with sales of theme park tours, cruise trips, and self-driving tours with new energy vehicles all experiencing a doubling in sales [1]

Group 1 - The core viewpoint of the article highlights the anticipated increase in travel enthusiasm among family units during the upcoming Dragon Boat Festival, coinciding with Children's Day, leading to a 23% year-on-year growth in domestic peripheral travel bookings for the 2025 holiday [1][2] - In Shenzhen, the city is expected to attract a new wave of inbound tourists during the Dragon Boat Festival, following its recognition as one of the top ten inbound travel cities during the May Day holiday [1] - The top ten inbound travel destinations for the Dragon Boat Festival include major cities such as Shanghai, Beijing, and Guangzhou, indicating a strong demand for urban tourism [1][2] Group 2 - The proportion of family travel orders on the Ctrip platform has significantly increased, with 35% of orders being from parent-child families, and searches for family-friendly hotels rising by 45% compared to the previous year [2] - The search interest for domestic inbound travel hotels has more than doubled, with the top ten source countries for inbound tourists being Malaysia, South Korea, and Singapore [2] - Popular outbound travel destinations for the Dragon Boat Festival include Japan, South Korea, and Hong Kong, with short-haul flights under three hours being particularly favored due to visa convenience and travel time [2]

Core Insights - The upcoming Dragon Boat Festival is expected to see a surge in outbound travel, with a more than 200% year-on-year increase in search interest among Chinese travelers, particularly in the Asia-Pacific region, with Japan and South Korea seeing over 300% growth [1][2] - Chinese travelers are increasingly seeking immersive experiences that allow them to connect deeply with their destinations, marking the arrival of a new era of travel focused on depth rather than just sightseeing [1][4] Group 1: Travel Trends - The top ten outbound travel destinations for early summer include Japan, South Korea, France, Italy, the United States, the United Kingdom, Spain, Thailand, Malaysia, and Switzerland, with European destinations gaining significant popularity [2] - The Z generation is driving the growth of outbound travel, with their search activity on Airbnb increasing nearly threefold compared to other age groups [2][3] - Four major interest trends have emerged among Chinese travelers: local cuisine, art and culture, concert attendance, and nature experiences [2][3] Group 2: Experience Economy - The experience economy is becoming a key growth driver for travel platforms and hotel brands, with Airbnb launching new services to enhance the "stay and play" experience for travelers [4][5] - Nearly 95% of surveyed Chinese respondents indicated they would book experience projects while traveling, with 85% stating they have traveled specifically for an experience or activity [4][5] - The demand for authentic experiences is particularly strong among the Z generation and families, with 60% of respondents prioritizing "authenticity" when searching for experiences [4][5] Group 3: Business Strategy - Airbnb aims to leverage high-frequency experience offerings to boost its lower-frequency accommodation business, creating a "one-stop travel" booking experience [6][7] - The integration of accommodation and experience bookings is seen as a necessary evolution in the travel market, with platforms increasingly focusing on providing comprehensive travel solutions [6][7] - The rise of experience-driven travel is prompting various hotel brands and platforms to enhance their offerings, with unique experiences leading to higher booking conversion rates [7][8]