Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company's core business is experiencing stable growth, with profit margins improving [1] - Revenue for Q2 2025 reached 4.67 billion, a year-on-year increase of 10%, exceeding the upper end of guidance [8] - The adjusted net profit for Q2 2025 was 780 million, reflecting a year-on-year growth of 18% [8] - The Core-OTA segment saw a revenue increase of 14% year-on-year, with transportation ticketing and accommodation booking revenues growing by 8% and 15% respectively [8] - Gross margin improved to 65.0%, with a net profit margin of 16.6%, up by 1.1 percentage points year-on-year [8] - The company is tightening user subsidies to ensure profit levels while actively leveraging WeChat traffic for growth [8] Financial Projections - Total revenue projections for the company are as follows: - 2023: 11.896 billion - 2024: 17.341 billion - 2025: 19.280 billion - 2026: 21.837 billion - 2027: 24.571 billion [1] - Adjusted net profit forecasts for 2025-2027 are 2.675 billion, 3.207 billion, and 3.541 billion respectively [8] - The projected P/E ratios for 2025-2027 are 15.68, 13.08, and 11.85 respectively [1]

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]