Citigroup's report stated that Tongcheng (00780.HK) performed steadily in the third quarter, with both revenue and profit exceeding expectations. As for the fourth quarter, the bank expects the trends in hotel and transportation ticketing businesses to continue, with strong sales growth, stable average daily room rate (ADR) on an annual basis, improved commissions, and a significant decrease in gross margin due to seasonal factors, especially in the tourism business. It is expected that the adjusted net profit margin for the fourth quarter will be 15%.

The bank raised profit forecasts for Tongcheng for the years 2024 to 2026 by 2%, 3%, and 0%, respectively, to reflect the third-quarter performance. The target price has been raised from 20 yuan to 21 yuan, and Tongcheng's core OTA trend remains strong with continuous improvement in gross margin, thus maintaining a "buy" rating.