Golden Finance News | Northeast Securities research indicates that in Q3 2024, tongchengtravel (00780) achieved revenue of 5 billion, a 51% increase year-on-year (exceeding expectations, company guidance was 45-50%), and adjusted net income of 0.91 billion, a 47% increase year-on-year (exceeding expectations and guidance).

The institution stated that the core OTA achieved revenue of 4 billion, a 22% increase year-on-year: among which transportation ticketing generated 2 billion, a 21% increase, lodging reservations 1.38 billion, a 22% increase, and other revenue 0.61 billion, a 24% increase. The international business growth led the field, with international ticket volume increasing by over 110% and international hotel nights increasing by over 130%. The vacation business achieved revenue of 0.98 billion (exceeding the 0.9-0.95 billion guidance).

The institution noted that tongchengtravel, as a leading OTA in emerging markets, benefits from the competitive advantages of traffic and inventory resources backed by Tencent and Trip.com. With the relaxation of pandemic controls, the company will benefit from both the recovery of the travel market and the increased penetration in emerging markets, supporting the company's continued growth and leading the industry recovery. The institution forecasts that the company's adjusted net income for 2024-2026 will be 2.7/3.4/4 billion yuan, with corresponding PEs of 14/12/10 times, and maintains a "buy" rating.