HK Stock Market Move | TONGCHENGTRAVEL (00780) rose over 4%, with accelerating growth in net profit in the first quarter, institutions optimistic about the continued growth of the OTA platform's performance.

TONGCHENGTRAVEL (00780) rose more than 4%, as of the time of writing, up 4.57% to HK$22.9, with a turnover of HK$167 million. In terms of news, recently, some OTA platforms released reports on the travel trends during the Dragon Boat Festival holiday, showing a steady growth in holiday bookings. In addition, the Ministry of Foreign Affairs recently announced that from June 9, 2025, to June 8, 2026, Saudi Arabia, Oman, Kuwait, and Bahrain will implement a visa-free policy for ordinary passport holders. PuYin International pointed out that on the basis of strong demand for resident travel and high prosperity in the cultural tourism industry, Chinese OTA platforms will benefit from the increase in the number of travelers in China, the recovery of inbound and outbound tourism, and business demand is expected to continue to grow. Goldman Sachs released a research report stating that TONGCHENGTRAVEL's net profit in the first quarter of this year accelerated growth, increasing by 41% year-on-year to RMB 788 million, 7% higher than the bank's expectations. The gross profit margin increased from 65% in the same period last year to 68.8%, slightly exceeding expectations. With continued efforts to promote monetization, the commission rate increased to 5.9% and service development expenses ratio decreased to 11.3%. The bank raised its adjusted earnings per share forecast for the fiscal years 2025 to 2027 by 1% to 2% and raised the target price from HK$28 to HK$28.7, maintaining a "buy" rating due to sustained domestic tourism demand.