Core Insights - The company achieved revenue of 5.509 billion yuan in Q3 2025, representing a year-on-year increase of 10.4%, and an adjusted net profit of 1.06 billion yuan, up 16.5% year-on-year [1] - The adjusted net profit margin reached 19.2%, an increase of 1 percentage point year-on-year [1] Revenue Breakdown - The core OTA (Online Travel Agency) business showed robust growth with revenue of 4.609 billion yuan, up 14.9% year-on-year; however, vacation revenue decreased by 8.0% to 900 million yuan due to impacts in Southeast Asia and reduced buyout business [1] - Within the OTA business, accommodation revenue was 1.580 billion yuan (+14.7%), transportation revenue was 2.209 billion yuan (+9.0%), and other revenues, including hotel management, reached 821 million yuan (+34.9%) [1] Accommodation and Transportation Insights - The accommodation booking business benefited from increased room nights, a recovery in ADR (Average Daily Rate) since Q2, and a shift towards higher-quality products, leading to a 15% year-on-year revenue growth in Q3 [1] - The transportation business saw a 9% year-on-year revenue increase in Q3, supported by normalized domestic flight demand, with expectations for further improvement in the company's take rate [1] Hotel Management Business - The hotel management business, identified as the company's second growth curve, maintained high growth, with nearly 3,000 hotels in operation as of the end of September, an increase of about 300 from Q2, and 1,500 hotels in preparation [2] - Wanda Hotel Management is expected to be consolidated in Q4, contributing some revenue, although its impact on the annual results is limited [2] International Travel Business - The outbound travel business turned profitable in Q3 and is expected to reach breakeven for the full year; the international air ticketing business showed strong growth, accounting for 6% of total transportation ticketing revenue, up 2 percentage points year-on-year [2] - The company aims to increase the share of outbound travel business in ticketing and hotel revenue to 10-15% in the future [2] Profitability and Forecast - The company's profitability is on an upward trajectory, with the adjusted net profit margin continuing to improve, reaching 19.2% in Q3, up 1 percentage point year-on-year [2] - The company forecasts overall revenues of 19.32 billion, 21.66 billion, and 24.60 billion yuan for 2025-2027, with adjusted net profits of 3.37 billion, 3.87 billion, and 4.40 billion yuan respectively, corresponding to a PE ratio of 14, 13, and 11 times at the current stock price [3]

Core Insights - The company reported a revenue of 5.5 billion yuan for Q3 2025, representing a year-over-year increase of 10.4%, and an adjusted net profit of 1.06 billion yuan, up 17% year-over-year, with an adjusted net profit margin of 19.2%, an increase of 1.0 percentage points year-over-year [1] Group 1: Core Online Travel Platform - The core online travel platform achieved a revenue of 4.6 billion yuan in Q3 2025, reflecting a year-over-year growth of 15%, with an operating profit margin of 31.2%, an increase of 0.1 percentage points year-over-year [1] - In the transportation ticketing segment, revenue reached 2.2 billion yuan, up 9% year-over-year, driven by deep insights into user demand and a continuous enhancement of value-added products and services, with international ticket sales growing rapidly [1] - The accommodation booking segment generated 1.58 billion yuan in revenue, a 15% year-over-year increase, benefiting from a significant rise in high-quality hotel room nights and improved brand recognition among high-value users in lower-tier cities [1] - Other revenue sources totaled 820 million yuan, a 35% year-over-year increase, primarily due to strong performance in hotel management, with nearly 3,000 hotels currently operating and 1,500 hotels in preparation as of September 30, 2025 [1] Group 2: Vacation Business and User Performance - The vacation business faced short-term revenue pressure, generating 900 million yuan in Q3 2025, a decline of 8% year-over-year, largely due to security issues in Southeast Asia [2] - The company saw a steady increase in paid user numbers, with an average monthly paid user count of 47.7 million, up 2.8% year-over-year, and an annual paid user count of 253 million, an increase of 8.8% year-over-year, with total service users growing by 7.3% to 2.02 billion [2] - As of September 30, 2025, over 87% of registered users lived in non-first-tier cities in China, with more than 70% of new paid users from WeChat in Q3 2025 coming from these areas, reinforcing the platform's position in the mass market [2] Group 3: Profit Forecast and Investment Rating - The company is positioned as a leading OTA platform in lower-tier markets, benefiting from the release of domestic travel demand, increased penetration in these markets, international business expansion, and user growth driven by online and offline traffic [2] - Revenue forecasts for 2025-2027 are adjusted to 19.3 billion, 21.9 billion, and 24.5 billion yuan, with net profits projected at 2.9 billion, 3.2 billion, and 3.7 billion yuan, respectively, leading to diluted EPS of 1.3, 1.4, and 1.6 yuan, and corresponding P/E ratios of 15.7, 14.2, and 12.3 [2] - The target market value for the company in 2026 is set at 60.2 billion yuan, with a target price of 28 HKD, maintaining a "buy" rating [2]

Core Viewpoint - The report from China Merchants Securities maintains a "strong buy" rating for Tongcheng Travel (00780), highlighting the sustained release of leisure travel demand since the summer peak season, driven by the company's subsidy strategy and an increase in the proportion of hotels rated three stars and above, leading to a trend of simultaneous growth in both volume and price in the hotel business [1] Group 1: Revenue and Performance - The company achieved revenue of 5.51 billion yuan, representing a year-on-year increase of 10.4%; adjusted EBITDA reached 1.51 billion yuan, up 14.5%, and adjusted net profit was 1.06 billion yuan, increasing by 16.5%, with both revenue and performance meeting expectations [1] - In Q3 2025, the company generated revenue from accommodation bookings, transportation tickets, vacation services, and other businesses amounting to 1.58 billion, 2.21 billion, 900 million, and 820 million yuan respectively, with other businesses performing exceptionally well, primarily driven by strong growth in hotel management [1] - As of September 30, 2025, the number of hotels under the group's management platform increased to nearly 3,000, with an additional 1,500 hotels in preparation; the acquisition of Wanda Hotel Management Co., Ltd. was completed on October 16, 2025, with 239 hotels operated under Wanda as of Q3 2025 [1] Group 2: Profitability and Margins - The company's overall gross margin was 65.7%, an increase of 2.3 percentage points year-on-year; the management, R&D, and sales expense ratios were 5.3%, 9.3%, and 31.1% respectively, with an adjusted net profit margin of 19.2%, up 1.0 percentage point, indicating steady improvement in profitability [2] Group 3: User Growth and Services - The average monthly paying users reached 47.7 million, an increase of 2.8%, while annual paying users totaled 250 million, up 8.8%, marking a historical high; the total number of travelers served over the past 12 months was 2.02 billion, reflecting a 7.3% increase, indicating a continued steady growth trend in paying users [3]

Core Viewpoint - The report from China Merchants Securities maintains a "strong buy" rating for Tongcheng Travel (00780), highlighting the sustained release of leisure travel demand since the summer peak season, driven by the company's subsidy strategy and an increase in the proportion of hotels rated three stars and above, leading to a trend of rising volume and price in hotel business [1] Group 1: Revenue and Performance - The company achieved revenue of 5.51 billion yuan, representing a year-on-year increase of 10.4%, with adjusted EBITDA of 1.51 billion yuan (+14.5%) and adjusted net profit of 1.06 billion yuan (+16.5%), meeting expectations [1] - In Q3 2025, revenue from accommodation booking, transportation ticketing, vacation business, and other businesses reached 1.58 billion, 2.21 billion, 900 million, and 820 million yuan respectively, with strong performance in hotel management driving growth [1] - As of September 30, 2025, the number of hotels under the group's management platform increased to nearly 3,000, with an additional 1,500 hotels in preparation, and the acquisition of Wanda Hotel Management Co., Ltd. was completed on October 16, 2025, managing 239 hotels under Wanda [1] Group 2: Profitability and Margins - The company's overall gross margin was 65.7%, an increase of 2.3 percentage points year-on-year, indicating steady improvement in profitability [2] - The management, R&D, and sales expense ratios were 5.3%, 9.3%, and 31.1% respectively, with an adjusted net profit margin of 19.2%, up by 1.0 percentage point, aligning with expectations [2] Group 3: User Growth and Services - The average monthly paying users reached 47.7 million, an increase of 2.8%, while annual paying users grew to 250 million, up by 8.8%, marking a historical high [3] - The total number of travelers served in the past 12 months was 2.02 billion, reflecting a year-on-year increase of 7.3%, indicating a continued upward trend in paying users [3]

11月25日晚间，同程旅行披露截至2025年9月30日止三个月的业绩。当季，同程旅行收入由去年同期的49.915亿元同比增加10.4%至55.091亿元。经调整 EBITDA同比增加14.5%至15.103亿元；经调整EBITDA利润率增加至27.4%，去年同期为26.4%。经调整溢利净额同比增加16.5%至10.602亿元。经调整净利 润率由去年同期的18.2%增加至19.2%。 此外，当季来自度假业务的收入达9.003亿元，同比下降8.0%，主要由于旅客对东南亚旅游的安全担忧持续存在。 用户规模方面，2025年第三季度，同程旅行平均月付费用户同比增加2.8%至4770万人，创历史新高。年付费用户同比增加8.8%至2.529亿人，创历史新 高。另外，截至2025年9月30日止的十二个月，累计服务人次同比增加7.3%至20.194亿。 蔡淑敏/摄 业务细分来看，第三季度，同程旅行的住宿业务收入同比增长14.7%至15.795亿元。同程旅行表示，公司当季重点满足用户对高品质酒店日益增长的需 求，推动了平台上高品质酒店间夜量占比的显著提升，并强化了在低线城市高价值用户中的品牌认知度，另外在国际酒店方面，持续致力于 ...

Core Insights - The company reported Q2 2025 revenue of 4.669 billion yuan, a year-on-year increase of 10.0%, and an adjusted net profit of 775 million yuan, up 18.0% year-on-year [1] - The adjusted net profit margin reached 16.6%, an increase of 1.1 percentage points year-on-year, while the core OTA business profit margin was 26.7%, up 2.4 percentage points year-on-year [2] Business Performance - The core OTA business showed steady performance with revenue reaching 4.008 billion yuan, a year-on-year increase of 13.7% [1] - Accommodation booking revenue was 1.371 billion yuan, up 15.2% year-on-year, driven by new accommodation scenarios such as concerts and sports events, with daily room nights hitting a record high [1] - Transportation ticketing revenue reached 1.881 billion yuan, a year-on-year increase of 7.9%, supported by enhanced value-added services and a nearly 30% year-on-year growth in international ticket volume [1] - Other business revenue was 755 million yuan, up 27.5% year-on-year, primarily due to hotel management business growth [1] - Vacation revenue decreased by 8.0% year-on-year to 662 million yuan, mainly due to reduced income from Southeast Asia outbound travel groups [1] Profitability and Efficiency - The company's gross margin reached 65.0%, an increase of 0.4 percentage points year-on-year, with the adjusted net profit margin at 16.6% [2] - The core OTA business profit margin improved to 26.7%, reflecting enhanced operational efficiency and increased average revenue per user (ARPU) [2] - AI has processed over 60% of online accommodation booking inquiries and over 30% of phone inquiries, contributing to improved operational efficiency [2] Strategic Focus - The primary strategic focus is on enhancing domestic OTA market share and profit margins, with cautious investment in heavy asset sectors [2] - Q3 2025 core OTA revenue is expected to maintain double-digit year-on-year growth, benefiting from ADR increases and hotel management business development [2] Financial Forecast - The company maintains adjusted net profit forecasts of 3.381 billion yuan, 4.063 billion yuan, and 4.651 billion yuan for 2025-2027, with corresponding adjusted PE ratios of 13, 11, and 10 times [3]

Core Insights - The company reported a revenue of 4.7 billion yuan in Q2 2025, representing a year-over-year increase of 10% [1] - Adjusted net profit reached 780 million yuan, up 18% year-over-year, with an adjusted net profit margin of 16.6%, an increase of 1.1 percentage points [1] Online Travel Platform Performance - The core online travel platform generated revenue of 4 billion yuan in Q2 2025, a 14% year-over-year increase, with an operating profit margin of 26.7%, up 2.4 percentage points [1] - Transportation ticketing revenue was 1.9 billion yuan, an 8% increase year-over-year, with international ticket sales growing nearly 30% [1] - Accommodation bookings revenue reached 1.4 billion yuan, a 15% increase year-over-year, supported by strong international hotel partnerships [1] - Other revenue, primarily from hotel management, was 760 million yuan, a significant 28% increase year-over-year, with over 2,700 hotels currently operating [1] Vacation Business Impact - The vacation business faced challenges due to security issues in Southeast Asia, resulting in a revenue decline of 8% year-over-year to 660 million yuan [2] User Growth and Market Penetration - The average monthly paying user count reached 46.4 million, a 9.2% year-over-year increase, with annual paying users totaling 252 million, up 10.2% [3] - The number of registered users from non-first-tier cities in China exceeded 87%, with 69% of new paying users in Q2 2025 coming from these areas [3] Financial Forecast and Investment Rating - Revenue projections for 2025-2027 are adjusted to 19.3 billion, 21.9 billion, and 24.4 billion yuan, respectively, with net profits of 2.8 billion, 3.2 billion, and 3.7 billion yuan [3] - The company is positioned as a leading OTA platform in lower-tier markets, benefiting from domestic travel demand and international expansion, with a target market value of 60.1 billion yuan for 2026 [3]

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].

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 - Tongcheng Travel has experienced a significant growth period due to structural changes in the domestic tourism market, particularly in non-first-tier cities, leading to a revenue increase of 11.5% year-on-year to 9.05 billion yuan in the first half of 2025 [2] - The company reported an adjusted EBITDA of 2.34 billion yuan, reflecting a 35.2% increase, and an adjusted net profit of 1.56 billion yuan [2] Revenue Growth - In the first half of 2025, Tongcheng Travel's accommodation business revenue grew by 18.8% year-on-year, reaching 2.56 billion yuan, driven by an increase in demand for quality accommodations [3] - The transportation ticketing service revenue rose by 7.9% year-on-year to 1.88 billion yuan in Q2 2025, with international ticket sales reaching a historical high, growing nearly 30% [4][5] User Engagement and Market Penetration - As of the end of Q2 2025, Tongcheng Travel's cumulative service users reached 1.99 billion, a 7.2% increase year-on-year, with over 87% of registered users coming from non-first-tier cities [6][7] - The company has expanded its service offerings to include a variety of transportation options, enhancing user engagement and satisfaction [7] Diverse Travel Demand - The demand for travel services has diversified, with a notable increase in leisure travel and experiences among users from non-first-tier cities, contributing to a 24.1% year-on-year growth in other revenues, reaching 1.36 billion yuan [8] - The introduction of innovative services such as "dynamic packaging" and "multi-modal transport combinations" has made travel more cost-effective for users [10]