Morgan Stanley's research report pointed out that Tongcheng Travel (00780.HK) has renewed its strategic cooperation agreement with Tencent (00700.HK), effective until July 31, 2027. The cooperation framework remains unchanged, and the cost increase is lower than the bank's predicted revenue growth from 2024 to 2027, and believes it will not have an adverse impact on the profit margin.

Due to the current weak macro environment, Morgan Stanley has lowered its earnings forecasts for Tongcheng Travel for 2024 to 2026 by 2% to 4% per share, and the target price has correspondingly lowered by 11% from 19 yuan to 17 yuan, and maintains a "shareholding" rating.