Investment Rating - The report maintains a "Buy" rating for the company [1][8]. Core Insights - The core online travel platform shows robust growth, with international business performance being particularly strong. In Q2 2025, the core online travel platform achieved revenue of 4 billion yuan (up 14% year-on-year) and an operating profit margin of 26.7% (up 2.4 percentage points year-on-year) [5]. - The company reported total revenue of 4.7 billion yuan in Q2 2025, representing a year-on-year increase of 10%, and an adjusted net profit of 780 million yuan (up 18% year-on-year), with an adjusted net profit margin of 16.6% (up 1.1 percentage points year-on-year) [4][5]. Revenue Breakdown - Transportation ticketing revenue reached 1.9 billion yuan (up 8% year-on-year), benefiting from a diverse range of value-added products and services, with international ticket sales growing nearly 30% year-on-year [5]. - Accommodation bookings generated 1.4 billion yuan (up 15% year-on-year), supported by steady growth in business volume and improved monetization capabilities [5]. - Other revenue sources totaled 760 million yuan (up 28% year-on-year), primarily driven by strong performance in hotel management, with over 2,700 hotels currently operating and an additional 1,500 hotels in preparation [5]. User Metrics - The average monthly paying user count reached 46.4 million (up 9.2% year-on-year), with a total of 252 million annual paying users (up 10.2% year-on-year) [5]. - The number of registered users residing in non-first-tier cities in China exceeded 87%, with approximately 69% of new paying users from non-first-tier cities in Q2 2025, reinforcing the platform's position in the mass market [5]. Financial Forecasts - The company is projected to benefit from the release of domestic travel demand, increased penetration in lower-tier markets, international business expansion, and user growth driven by online and offline traffic cultivation. Revenue forecasts for 2025-2027 are adjusted to 19.3 billion yuan, 21.9 billion yuan, and 24.4 billion yuan, respectively, with net profits of 2.8 billion yuan, 3.2 billion yuan, and 3.7 billion yuan [6][7].

Group 1: Summer Travel Trends - The summer travel market in 2025 is showing a diversification trend, with traditional cultural tours, summer cooling trips, red tourism, and event-based travel being the most popular themes [1] - The main travelers this summer are students and family visitors, with popular domestic destinations including Beijing, Shanghai, Sanya, Nanjing, Huangshan, Hangzhou, Chengdu, Guangzhou, Chongqing, and Guiyang [1] Group 2: Youth and Event Travel - The "youth travel group" composed of college students is actively traveling, with daily train ticket orders for students increasing by over 80% since the start of summer [3] - Top destinations for student travelers include Beijing, Urumqi, Chongqing, Xi'an, Zhengzhou, Chengdu, Jinan, Lanzhou, Shijiazhuang, and Guangzhou [3] - Event-based travel, particularly related to the "Su Super" league, has seen significant growth, with travel to Suzhou, Wuxi, Changzhou, Nanjing, Nantong, and Yangzhou increasing by nearly 19% during the league matches [3][4] Group 3: Peak Travel and Cultural Events - The summer travel market is expected to see a small peak from August 23 to 24, with a shift towards off-peak travel as summer ends, lasting until mid to late September [5] - Popular off-peak destinations include Shanghai, Beijing, Sanya, Lijiang, Hangzhou, Chengdu, Xi'an, Guangzhou, Chongqing, and Kunming [5] - Cultural events such as national trend markets, comic exhibitions, concerts, and music festivals are driving the growth of folk culture tourism and group travel [4] Group 4: Upcoming National Holidays - The upcoming National Day and Mid-Autumn Festival will create an 8-day holiday, with many users planning to start their trips early, especially for outbound travel [6] - Popular domestic destinations for the National Day holiday include Beijing, Shanghai, Chongqing, Sanya, Chengdu, Xiamen, Nanjing, Guangzhou, Dalian, and Weihai [6] Group 5: Inbound Tourism Trends - Inbound tourism is on the rise, with the expansion of the 240-hour visa-free transit policy attracting more foreign tourists to lesser-known destinations [7][8] - Foreign tourists are increasingly booking accommodations in smaller cities, with top booking cities being Shanghai, Guangzhou, Beijing, Chengdu, and Shenzhen [7] - The booking volume for flights to Yiwu has increased by 2.6 times, with significant growth in visitors from Vietnam and Indonesia [8]

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].

Core Viewpoint - Jianyin International's report indicates that Tongcheng Travel (00780) demonstrated stable performance in Q2, with revenue meeting expectations and adjusted net profit slightly exceeding expectations [1] Group 1: Financial Performance - The hotel revenue is expected to maintain stability, which will help offset the slowdown in transportation ticketing business [1] - The forecast for Q3 2025 predicts a 10% year-on-year revenue growth to 5.5 billion RMB, with adjusted net profit expected to grow 17% year-on-year to 1.06 billion RMB [1] Group 2: Profitability Drivers - The increase in high-margin hotel business contributions, along with improvements in marketing efficiency and operational leverage, will continue to drive profit margin enhancement [1] - The target price has been raised from 25.9 HKD to 27.2 HKD, maintaining an "outperform" rating [1]

Group 1 - The core viewpoint of the report is that Tongcheng Travel (00780) demonstrated stable performance in Q2, with revenue meeting expectations and adjusted net profit slightly exceeding expectations [1] - Looking ahead to Q3 2025, the hotel revenue is expected to maintain stability, which will help offset the slowdown in transportation ticketing business [1] - The report anticipates a 10% year-on-year increase in Q3 revenue to 5.5 billion RMB, with adjusted net profit expected to grow by 17% year-on-year to 1.06 billion RMB [1] Group 2 - The contribution from the high-margin hotel business is expected to rise, along with improvements in marketing efficiency and operational leverage, which will continue to drive profit margin growth [1] - The target price for Tongcheng Travel has been raised from 25.9 HKD to 27.2 HKD, while maintaining an "outperform" rating [1]

Core Insights - The overall performance of the self-driving market during the summer is active, with popular outbound destinations including Italy, Australia, Thailand, Malaysia, the UK, New Zealand, Germany, France, Spain, and Turkey [1] Summary by Category Outbound Travel Trends - European destinations are particularly favored by Chinese tourists, with self-driving demand to Italy increasing by 6.8%, France by 12.9%, Spain by 5.12%, and Switzerland by 6.43% year-on-year [1] - There is a significant surge in self-driving travel demand to Africa, with an overall increase of 67% year-on-year. South Africa has seen a remarkable growth of over 116.09%, making it the top choice for Chinese tourists in Africa [1] - Namibia and Morocco also experienced substantial growth in self-driving demand, with increases of over 82.5% and 60% respectively [1] Popular Destinations in Asia - Japan and South Korea are leading the summer travel trends in Asia, with self-driving demand to Japan increasing by 53%, primarily in cities like Tokyo, Osaka, Okinawa, and Fukuoka [1] - South Korea's self-driving demand has grown by 62%, focusing on Jeju Island and Seoul [1] - In Southeast Asia, Bali has seen an extraordinary increase in self-driving demand, exceeding 407% during the summer season [1]

Core Insights - The company reported a revenue of 4.669 billion yuan in Q2 2025, representing a year-on-year increase of 10.0% [1] - Adjusted EBITDA for Q2 was 1.185 billion yuan, up 29.7% year-on-year [1] - Adjusted net profit reached 775 million yuan in Q2, reflecting an 18.0% increase year-on-year, with a net profit margin of 16.6% compared to 15.5% in the same period last year [1] Revenue Performance - The core OTA business showed steady growth, with significant contributions from hotel management [1] - Accommodation revenue in Q2 was 1.371 billion yuan (+15.2%), transportation revenue was 1.881 billion yuan (+7.9%), and other revenue was 755 million yuan (+27.5%), while vacation revenue decreased to 662 million yuan (-8.0%) [1] - The accommodation booking business was the main growth driver, benefiting from a rebound in average industry room rates and a shift towards higher-quality products [1] Profitability and Cost Management - The company’s profitability is on an upward trajectory, with continuous improvement in profit margins [2] - Excluding stock-based compensation, the sales cost rate, service development cost rate, sales expense rate, and administrative expense rate decreased year-on-year by 0.4, 0.5, 2.3, and 0.1 percentage points respectively [2] - The adjusted net profit margin reached 16.6%, an increase of 1.1 percentage points year-on-year, driven by improved sales ROI and marketing efficiency [2] Market Outlook - The travel industry is expected to have long-term growth potential as consumers seek unique experiences [3] - The company has a strong foundation in the OTA business, with a solid user base, supply chain capabilities, and service efficiency [3] - The company is projected to achieve revenues of 19.685 billion, 22.668 billion, and 26.018 billion yuan from 2025 to 2027, with adjusted net profits of 3.338 billion, 3.920 billion, and 4.615 billion yuan respectively [3]

Core Insights - Tongcheng Travel's Q2 2025 revenue increased by 10% to 4.67 billion yuan, slightly above market expectations by 0.6%, driven by better-than-expected hotel and other revenues [1] - Non-IFRS net profit reached 770 million yuan, exceeding market expectations by 3.3%, with a Non-IFRS net profit margin of 16.6%, attributed to improved marketing efficiency [1] Revenue Growth - Domestic hotel business outperformed the industry, with Q2 2025 Average Daily Rate (ADR) showing positive year-on-year growth, reflecting changes in consumer habits; the share of room nights from three-star hotels increased by 4 percentage points year-on-year [1] - The company expects Q3 2025 hotel room nights to grow by 10-15% year-on-year, with ADR showing low single-digit growth, anticipating a 13% year-on-year increase in hotel revenue [1] - International flight ticket volume increased by over 30% in Q2 2025, with international ticket revenue accounting for over 6% of transportation revenue, a 2 percentage point increase year-on-year [1] Future Growth Engines - The outbound business and hotel management are identified as dual growth engines; the company is tapping into the outbound travel demand from lower-tier markets and aims for international business to break even by year-end [2] - The hotel management business is expanding, with over 2,700 hotels currently operating on the Yilong hotel technology platform and another 1,500 in preparation, ranking 8th in the China Hotel Association's list for 2024 [2] Profitability Improvement - Core OTA operating profit reached 1.07 billion yuan in Q2 2025, with an operating profit margin of 26.7%, up from 24.3% in the same period last year [2] - The company anticipates continued improvement in profit margins due to enhanced marketing efficiency, operational leverage, and the maturation of international business [2] Earnings Forecast and Valuation - The company maintains its revenue and profit expectations for 2025/2026, with a target price of 23 HKD, corresponding to 15x/12x 2025e and 2026e Non-IFRS P/E, indicating a potential upside of 17% [2]

Core Insights - The company reported a revenue of 9.05 billion yuan for the first half of 2025, representing a year-on-year increase of 11.5% [1] - Adjusted EBITDA for the same period was 2.34 billion yuan, up 35.2% year-on-year, with an adjusted EBITDA margin of 25.9%, an increase of 4.5 percentage points [1] - The online travel platform business continues to grow rapidly, with significant contributions from hotel management services [1][2] Financial Performance - In Q2 2025, the company achieved a revenue of 4.67 billion yuan, a 10.0% increase year-on-year, and an adjusted EBITDA of 1.19 billion yuan, up 29.7% year-on-year [1] - Revenue from accommodation bookings, transportation tickets, and other services in Q2 2025 was 1.37 billion yuan, 1.88 billion yuan, and 760 million yuan respectively, with year-on-year growth rates of 15.2%, 7.9%, and 27.5% [1] - The hotel management business has over 2,700 operating hotels and a pipeline of 1,500 hotels as of Q2 2025 [1] User Growth and Market Expansion - The company has 252 million annual paying users, a 10.2% increase year-on-year, and 1.99 billion cumulative service users, up 7.2% year-on-year [2] - Among new paying users on the WeChat platform, 69.0% are from non-first-tier cities, reflecting a 1.0 percentage point increase from Q1 2025 [2] - The AI trip planning tool, DeepTrip, enhances user experience by simplifying decision-making and reducing the time from search to booking [2] Business Outlook - The company aims to deepen its core online travel platform business and increase market share [2] - Plans to develop outbound travel services to enhance international market presence [2] - The hotel management business is expected to become a significant growth driver for the company [2] Profit Forecast - Projected net profits for 2025-2027 are 2.6 billion yuan, 3.24 billion yuan, and 3.9 billion yuan, with year-on-year growth rates of 31.9%, 24.3%, and 20.7% respectively [2]

Core Viewpoint - The company demonstrated robust revenue growth in Q2 2025, with adjusted net profit increasing by over 18% year-on-year, indicating a focus on profitability and operational efficiency [1][2]. Revenue Performance - Q2 revenue reached 4.669 billion yuan, a 10.0% increase year-on-year, while the net profit attributable to shareholders was 642 million yuan, up 48.0% [1]. - The OTA segment saw a revenue increase of 13.7%, with an operating profit margin (OPM) of 24.7%, reflecting a 2.4 percentage point improvement [1]. - The company experienced a strategic contraction in packaged business due to demand pressures in Southeast Asia, resulting in an 8.0% decline in revenue from this segment, but maintaining a positive profit contribution [1][2]. User and ARPU Growth - The company achieved a healthy increase in paid users and Average Revenue Per User (ARPU), with cumulative paid users reaching 250 million, a 10.2% increase, and ARPU at 72.2 yuan, up 13.9% [2]. Profitability and Cost Management - The gross profit margin improved by 0.4 percentage points in Q2, driven by enhanced monetization rates in the OTA business and efficiencies gained through generative AI [2]. - The sales expense ratio decreased by 2.4 percentage points, indicating a focus on balancing marketing investment returns, with expectations of breakeven in international business by 2025 [2][3]. - R&D and management expense ratios also saw a decline, with management projecting an overall increase in core business profit margins for the year [2]. Strategic Focus and Industry Positioning - The management emphasized the importance of the OTA core strategy, aiming to capitalize on domestic consumption trends while enhancing international business monetization and cross-selling opportunities [3]. - The company has positioned itself among the top 10 hotel management companies in China, with over 2,700 hotels operational and a target of 3,000 by year-end [3]. - Recent acquisitions, including a proposed 2.49 billion yuan purchase of Wanda Hotel Management, are expected to strengthen the company's market position and operational synergies [3].