Goldman Sachs: TONGCHENGTRAVEL (00780) performance last year met expectations. Target price slightly increased to 29 Hong Kong dollars.

Goldman Sachs released a research report stating that TONGCHENGTRAVEL (00780) fourth quarter performance last year met expectations. The group recorded a net profit of 103 million RMB for the period. Adjusted net profit increased by 18% year-on-year to 780 million RMB, in line with the bank and market expectations, with net profit margin expanding by 0.5 percentage points year-on-year. The target price has been raised from HK$28.8 to HK$29, maintaining a "buy" rating. The report mentioned that during the conference, the group's management remained optimistic about the business prospects for the 2026 fiscal year. With the increasing popularity of experiential tourism and government support policies (such as Spring and Autumn holidays), it is expected that leisure travel demand will continue to show strong growth momentum. The bank slightly adjusted the group's adjusted earnings per share forecast for the next two years, with an upward revision ranging from 1% to 4%, and introduced forecasts for 2028. The group expects core OTA business revenue to achieve mid-teens growth in the first quarter of this year and for the full year.