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]

Core Insights - The company reported Q2 revenue of 4.669 billion yuan, a year-on-year increase of 10.0%, significantly slowing from 48.1% in the same period last year [1][4] - Adjusted EBITDA margin improved to 25.4% from 21.5% year-on-year, while adjusted net profit margin rose to 16.6% from 15.5% [2][4] - The company remains optimistic about the outbound travel market despite a decline in revenue from Southeast Asia due to safety concerns [3] Business Performance - The accommodation booking segment showed resilience with a revenue increase of 15.2% to 1.371 billion yuan, attributed to steady business growth and improved monetization [2][4] - The transportation ticketing business experienced a slowdown, with revenue growth dropping to 7.9%, although international ticket sales reached a historical high with nearly 30% year-on-year growth [2][4] - The vacation business saw a revenue decline of 8.0% to 662 million yuan, primarily due to ongoing safety issues in Southeast Asia [2][4] Operational Efficiency - The company achieved strong operating cash flow of 3.035 billion yuan in the first half of the year, indicating robust cash generation capabilities [2] - The adjusted EBITDA for the first half reached 2.34 billion yuan, a year-on-year increase of 35.2% [1][2] - The company is focusing on high-value users and expanding its presence in lower-tier cities to enhance market share and monetization [3] Technological Advancements - The introduction of the AI-powered itinerary planning tool, DeepTrip, aims to enhance user experience and operational efficiency by optimizing service processes and resource matching [3] - The hotel management platform operates over 2,700 hotels, with an additional 1,500 in preparation, reflecting a continued light-asset expansion strategy [3]