HAITONG INT'L: Raise TONGCHENGTRAVEL (00780) target price to 30 Hong Kong dollars, maintain "outperform" rating.

HAITONG INT'L released a research report stating that TONGCHENGTRAVEL (00780) second-quarter revenue increased by 10% compared to the same period last year, which is in line with market expectations and is at the midpoint of the company's guidance; Adjusted net profit increased by 18% year-on-year, exceeding expectations by 3.4%. The bank maintained its "outperform the market" rating and raised its target price from HK$27 to HK$30. Looking ahead to the second half of the year, the bank stated that the average room rate trend in the hotel industry is improving in the third quarter, and it is expected that TONGCHENGTRAVEL's hotel business and room nights will slightly increase, surpassing the industry average, while the transportation ticketing business will be more in line with industry trends. Therefore, the bank expects the company's hotel and transportation ticketing business to grow by 14% and 10% respectively in the third quarter. Other revenue is expected to continue to show strong growth momentum. The bank forecasts that the company's total revenue for the third quarter will be RMB 5.514 billion, an increase of 10% year-on-year, and expects adjusted net profit for the third quarter to be RMB 1.047 billion, with the full year expected to be RMB 3.364 billion.