Tongcheng Travel (00780) In the first quarter of 2024, the company achieved revenue of 3.866 billion yuan, an increase of 49.5% over the previous year; adjusted net profit of 558 million yuan, an increase of 10.9% over the previous year.
The Zhitong Finance App learned that recently, Tongcheng Travel (00780) released a performance report for the first quarter of 2024. Financial reports show that in the first quarter of 2024, the company achieved revenue of 3.866 billion yuan, a year-on-year increase of 49.5%; adjusted net profit of 558 million yuan, an increase of 10.9% over the previous year. By the end of the first quarter of 2024, the number of annual service users of Tongcheng Travel reached 1,827 million, an increase of 57.4% year on year; annual paying users reached 229 million, an increase of 14.3% year on year.
After Tongcheng Travel released its first-quarter earnings report, a number of investment banks and brokerage institutions, including CMB International, Jefferies, Bank of America Securities, Huatai Securities, and UBS, released research reports and updated their performance expectations. These agencies all gave Tongcheng Travel a “buy” or “outperform the industry” rating.
Among them, CMB International believes that the mainland business will continue to gain growth momentum from the sinking market, and that growth in outbound and other businesses will provide additional support for revenue growth. Therefore, it maintains a “buy” rating for same-trip travel and raised the target price from HK$24 to HK$25.
Jefferies maintained a “buy” rating for the same trip and set a target price of HK$28.2. The report points out that Tongcheng Travel's revenue and adjusted profits in the first quarter exceeded expectations. Management is optimistic about travel demand, and indicates that consumers prefer more diverse travel products. Management revealed a number of strategies to attract users, and the upward trend in market share is expected to continue.
Additionally, Bank of America Securities raised the target price for the same trip from HK$21 to HK$24 and reaffirmed the “buy” rating. Huatai Securities adjusted the target price to HK$25.5 (previously HK$24.25), maintaining the “Buy” rating. UBS raised the target price for the same trip to HK$25 and is optimistic about its profit growth potential. SPDB International issued an announcement on May 22 to maintain the “Buy” rating and target price of HK$24.