Citigroup: TONGCHENGTRAVEL (00780) has a stable financial outlook, maintains a "buy" rating.

Citigroup's research report stated that it has adjusted the profit forecast for TONGCHENGTRAVEL (00780) for the next two years, with a target price of 28 Hong Kong dollars and a maintained "buy" rating. This is because the group's valuation is only 10 times the forecasted P/E ratio for 2026, and its financial prospects are stable. TONGCHENGTRAVEL's management has not seen any significant changes in the industry regulatory environment and will seek opportunities to cooperate with AI chatbot applications to consolidate its market position in the era of artificial intelligence. The report stated that TONGCHENGTRAVEL's performance in the fourth quarter of last year was roughly in line with expectations. Looking ahead to 2026, the bank expects the hotel room's night volume to continue to maintain a healthy level of high single-digit year-on-year growth; the average daily room rate (ADR) at hotels will also see a good industry recovery; the growth in transportation ticketing business will benefit more from value-added services and optimized subsidy policies, thereby enhancing profitability; other business income is expected to achieve strong growth through the integration of Wanda Hotels and further expansion of the hotel management chain network.