CICC International: Raises target price of Tongcheng Travel (00780.HK) to 27.2 Hong Kong dollars, slightly surpassing second quarter performance expectations.

Zhixin Financial APP learned that ICBC International released a research report stating that the performance of Tongcheng Travel (00780.HK) in the second quarter was stable, with revenue meeting expectations and adjusted net profit slightly exceeding expectations. Looking ahead to the third quarter of 2025, the bank expects the momentum of hotel revenue to remain stable, helping to offset the impact of the slowdown in the transportation ticketing business. ICBC International believes that the contribution of high-profit margin hotel business will increase, coupled with the improvement of marketing efficiency and operating leverage, will continue to drive profit margin improvement. It is currently forecasted that third-quarter revenue will continue to grow by 10% year-on-year to 5.5 billion yuan, and adjusted net profit will grow by 17% year-on-year to 1.06 billion yuan. The target price is correspondingly raised from 25.9 Hong Kong dollars to 27.2 Hong Kong dollars, and the "outperform the market" rating is maintained.