CICC: Maintain SOTC Travel target price of HK$23, with a rating of "Outperform" in the industry.

CICC released a research report stating that due to effective cost control by Tongcheng Travel (00780) Company, the bank raised its 2025 profit forecast by 2% to 3.3 billion RMB and maintained its 2026 profit forecast at 3.9 billion RMB. The bank maintained an outperform rating on the industry and a target price of 23 HKD, with an upside potential of 9%. The company is currently trading at 14x/11x 2025 estimated earnings (Non-IFRS) and 2026 estimated earnings (Non-IFRS). For the second quarter of 2025, the bank expects the group's revenue to increase by 10% to 4.66 billion RMB, with core OTA revenue increasing by 13% to 3.99 billion RMB. It is expected that the second quarter of 2025 Non-IFRS net profit will be 750 million RMB.