UBS: Raised TONGCHENGTRAVEL (00780) target price to HK$26.5, believes hotel revenue should remain resilient.

UBS released a research report stating that it is expected that TONGCHENGTRAVEL (00780) core OTA revenue will continue to grow steadily in the third quarter, with a year-on-year growth of 14%, close to the high end of the previously guided range (10-15%). The travel demand during the National Day holiday has become a norm, but the bank believes that Tongcheng's hotel revenue should remain resilient. Therefore, the bank predicts that the company's accommodation revenue growth will be close to the mid-teens level. The target price has been raised from HK$25.5 to HK$26.5, maintaining a "buy" rating. In terms of transportation business, the bank predicts that Tongcheng's revenue in the third quarter will record high single-digit growth year-on-year.