Q1 performance exceeded expectations, Tongcheng Travel's stock rose nearly 14% in early trading, reaching a historic high.

Last Friday, after the market closed, Tongcheng Travel announced its performance. Today, the stock price rose nearly 14% in the early trading session, reaching 23.35 Hong Kong dollars, hitting a new historical high. The company's performance announcement showed that in the first quarter of 2025, the revenue was 4.377 billion yuan, a 13.2% increase year-on-year, exceeding market expectations by 1% according to Zhongjin. This was mainly due to unexpected traffic revenue. The adjusted EBITDA reached 1.159 billion yuan, a 41.3% increase year-on-year, and the adjusted net profit was 788 million yuan, exceeding market expectations by 6% according to Zhongjin. The continuous improvement of mass tourism consumption has injected new impetus into Tongcheng Travel's business growth. In the first quarter of 2025, the accommodation business revenue of Tongcheng Travel increased by 23.3% year-on-year, reaching 1.19 billion yuan; the traffic business revenue increased by 15.2% year-on-year, reaching 2 billion yuan. Driven by the trend of more residents in non-first-tier cities traveling abroad, in the first quarter, the international air ticket volume of Tongcheng Travel increased by over 40% year-on-year, and the international hotel room nights increased by over 50% year-on-year.