The Zhitong Finance App learned that Jefferies released a research report saying that maintaining the Tongcheng Travel (00780) “buy” rating, it is expected that revenue and non-IFRS profits for the first quarter of this year are in line with expectations, with a target price of HK$28.2.

The bank expects Tongcheng's revenue for the first quarter of this year to rise 44% year-on-year to 3.7 billion yuan (RMB. same below). Among core OTAs, revenue from accommodation reservation services increased 12% due to last year's high base effect; transportation ticket revenue increased 20% due to increased activities returning home during the Spring Festival; and other revenue increased 40%. The gross margin of core OTAs is expected to remain around 74.5%, while the gross margin of tourism is about 17.5%; non-IFRS profits reach 502 million yuan.