Group 1 - The core point of the news is that Tongcheng Group's subsidiary, Yilong Network Information Technology, has acquired 100% of Newborn Payment for approximately 300 million yuan, allowing the company to enter the payment sector indirectly through the acquisition of a payment license [1] - The acquisition is expected to benefit the company by leveraging opportunities in the Hainan Free Trade Port, focusing on cross-border trade and cultural tourism consumption, and aiding the digital upgrade of tourism consumption scenarios [1] - Newborn Payment, established in early 2008 and under HNA Group, is one of the first third-party payment companies in China to obtain a full payment license, with its license valid until May 2026 [1] Group 2 - After acquiring Newborn Payment, Tongcheng Travel can reduce payment costs and create synergies with its main business, which includes accommodation booking and transportation ticketing services [2] - The value of payment licenses has been increasing, with companies like JD.com, Meituan, and ByteDance acquiring licenses through similar means, while competitors like Ctrip have developed their own payment solutions [2] Group 3 - In the first half of 2025, Tongcheng Travel reported revenue of 9.05 billion yuan, a year-on-year increase of 11.5%, with adjusted EBITDA of 2.34 billion yuan, up 35.2%, and adjusted net profit of 1.56 billion yuan, an increase of 28.6% [3] - Revenue from transportation ticketing for the same period was 3.88 billion yuan, growing by 11.6%, while accommodation booking revenue reached 2.56 billion yuan, up 18.8% [3]

Group 1 - Ctrip Group's Q2 revenue increased by 16% year-on-year to 14.9 billion yuan, exceeding market expectations by 1%, primarily driven by better-than-expected accommodation revenue [1] - CICC maintains the revenue forecast for the company for the next two years, while raising the 2025 non-GAAP net profit forecast by 8% to 17.7 billion yuan [1] - The target price for Ctrip's US stock is set at $75.9, and for its H-shares at 588.5 Hong Kong dollars, corresponding to non-GAAP P/E ratios of 21x and 20x for 2025 and 2026 respectively [1]

Core Insights - Ctrip Group reported a net revenue of 14.843 billion RMB for Q2 2025, representing a year-on-year increase of 16.22% [1] - The net profit attributable to shareholders for the same quarter was 4.846 billion RMB, showing a year-on-year growth of 26.43% [1] Revenue Breakdown - Accommodation booking revenue for Q2 2025 reached 6.2 billion RMB, reflecting a year-on-year increase of 21% and a quarter-on-quarter growth of 12% [1] - Transportation ticketing revenue was 5.4 billion RMB, with a year-on-year increase of 11% and stable quarter-on-quarter performance [1] International and Inbound Tourism - Ctrip's international OTA platform bookings grew by over 60% year-on-year in Q2 2025 [1] - Inbound tourism bookings saw a remarkable increase of over 100% year-on-year, driven primarily by demand from South Korea and Southeast Asia [1]

Core Viewpoint - The company reported a revenue of 4.669 billion yuan in Q2 2025, representing a year-on-year increase of 10.0%, and an adjusted net profit of 775 million yuan, up 18.0% year-on-year [1][2] Financial Performance - The adjusted EBITDA for Q2 2025 was 1.185 billion yuan, a year-on-year increase of 29.7%, with an adjusted EBITDA margin of 25.4%, up 3.9 percentage points year-on-year [1][2] - The gross profit margin for Q2 2025 was 65.0%, an increase of 0.4 percentage points year-on-year, and the adjusted net profit margin was 16.6%, up 1.1 percentage points year-on-year [1][2] Revenue Breakdown - Revenue from accommodation booking services was 1.371 billion yuan, up 15.2% year-on-year, while transportation ticketing services generated 1.881 billion yuan, an increase of 7.9% year-on-year [2] - Other business revenue reached 755 million yuan, a year-on-year increase of 27.5%, while vacation business revenue was 662 million yuan, down 8.0% year-on-year, with the decline narrowing compared to Q1 2025 [2] User Metrics - The cumulative number of service users reached 1.99 billion, a year-on-year increase of 7.2%, with annual paid users hitting a record high of 252 million [2] - The average revenue per user (ARPU) for the first half of 2025 increased by 13.8% year-on-year, and the number of paid "Black Whale" members grew by 24% year-on-year [2] Business Development - The company's hotel management business is growing rapidly, with over 2,700 hotels under the "Elong" brand, and plans to acquire Wanda's hotel management business to enhance its high-end hotel brand matrix [2] - The company is expanding its services into niche markets, with a significant increase in transfer passenger flow at regional airports and a strong growth in first-time users of air travel services [2] - The company's self-owned app maintained strong growth in daily active users, reaching a historical high before the May Day holiday, and increased investment in social media to attract younger, experience-focused users [2] Investment Outlook - The company is expected to achieve a net profit of 2.6 billion yuan, 3.08 billion yuan, and 3.59 billion yuan from 2025 to 2027, with adjusted net profits of 3.32 billion yuan, 3.71 billion yuan, and 4.22 billion yuan for the same period [3] - The current stock price corresponds to a price-to-earnings (PE) ratio of 17X, 15X, and 13X for net profit, and 14X, 12X, and 11X for adjusted net profit for the years 2025 to 2027 [3]

Group 1 - The Guizhou Provincial Market Supervision Administration held a meeting with five travel platform companies, including Ctrip, Tongcheng, Douyin, Meituan, and Fliggy, to enforce compliance with pricing laws and regulations [1] - The meeting addressed potential issues such as "choose one from two," price manipulation through technology, contract breaches, price fraud, and price gouging, urging companies to strengthen self-regulation and compliance [1] - The administration will closely monitor the competitive landscape and take strict legal action against companies that violate regulations or fail to rectify issues [1] Group 2 - On July 31, the Guizhou Provincial Market Supervision Administration issued a reminder to the accommodation industry and third-party platforms to adhere to pricing laws, including clear pricing and prohibiting unilateral contract cancellations [2] - Penalties for violations include fines up to 5,000 yuan for minor infractions, up to 500,000 yuan for price fraud, and up to 3 million yuan for price gouging [2] - The China Tourism Research Institute predicts that domestic tourist numbers during the summer of 2025 may exceed 2.5 billion, reaching 115% of 2019 levels, with overall summer consumption expected to reach 1.8 trillion yuan [2] Group 3 - As a popular summer travel destination, Guizhou's market supervision authority convened a meeting to standardize tourism pricing, with industry associations advocating for self-regulation and fair pricing practices [3] - The Guizhou Provincial Tourism Association and other organizations called for adherence to legal pricing standards and the elimination of deceptive pricing practices in the accommodation and dining sectors [3] - The Guizhou Consumer Association urged consumers to pay attention to pricing information and for operators to implement clear pricing to foster a fair and trustworthy summer tourism environment [3]

Investment Rating - The report maintains a "Buy" rating for the company [1][9]. Core Insights - The company has shown continuous improvement in profit margins, with a focus on international expansion performance [3][6]. - In Q1 2025, the company achieved revenue of 4.4 billion yuan, representing a year-over-year increase of 13%, and an adjusted net profit of 790 million yuan, up 41% year-over-year, with an adjusted net profit margin of 18%, an increase of 3.6 percentage points year-over-year [5][6]. Financial Performance - The core online travel platform generated revenue of 3.8 billion yuan in Q1 2025, a year-over-year increase of 18%, with an operating profit margin of 29.2%, up 6.6 percentage points year-over-year [6]. - Revenue from transportation ticketing reached 2 billion yuan, up 15% year-over-year, benefiting from increased demand and enhanced value-added services [6]. - Accommodation bookings generated 1.2 billion yuan in revenue, a 23% year-over-year increase, with international hotel night volume growing over 50% [6]. - The vacation business faced short-term revenue pressure, generating 590 million yuan, down 11.8% year-over-year, due to safety issues in Southeast Asia [6]. User Metrics - The average monthly paying user count reached 46.5 million, a 9.2% year-over-year increase, with annual paying users totaling 247 million, up 7.8% year-over-year [6]. - Over 87% of registered users reside in non-first-tier cities in China, with 68% of new paying users from these areas, reinforcing the platform's position in the mass market [6]. Future Projections - Revenue forecasts for 2025-2027 are adjusted to 19.3 billion, 22.1 billion, and 24.9 billion yuan respectively, with net profits projected at 2.7 billion, 3.0 billion, and 3.5 billion yuan [8]. - The target market capitalization for 2025 is set at 51.4 billion yuan, with a target price of 24 HKD per share [8].