Huatai Securities released a research report saying that it maintains the "Buy" rating of Tongcheng Travel (00780) and adjusts its revenue forecast from 2024 to 2026 to 183/233100freespinsnodeposit2022.1/29.26 billion yuan, adjusted net profit is forecast to 27.4/34.3/41.2 billion yuan, and the target price has increased from HK$24.25 to HK$25.5.
The report pointed out that benefiting from the increased demand for diversified tourism experiences, the company achieved revenue of 3.87 billion yuan (the same below) in the first quarter, in line with market expectations100freespinsnodeposit20223.74 billion yuan; adjusted net profit was 560 million yuan, in line with market expectations of 540 million yuan. The adjusted net profit margin was 14.4%, a year-on-year decrease of 5 percentage points, mainly due to the consolidation of vacation business, this business model and Online travel platforms have differences in operating profits due to different business models.