tekota601| Furui: Maintain Tongcheng Travel Buy Rating Target Price of HK$28.2

Furui released a research report sayingtekota601, maintain the "Buy" rating of Same Journey (00780)tekota601, target price 28tekota601.2 Hong Kong dollars.

The report stated that the company's first-quarter revenue and adjusted profit exceeded expectations, and management was optimistic about tourism demand, and pointed out that consumers prefer more diversified tourism products. Management disclosed multiple strategies to attract users, and the upward trend in market share is sustainable. The bank maintains its forecast for the company's revenue and adjusted profit this year unchanged. Affected by last year's base effect, growth in the second half is expected to accelerate compared with the first half.

The bank predicts that Tongcheng Travel's core online travel platform revenue in the second quarter will increase 24% year-on-year to approximately 3.6 billion yuan, with tourism revenue reaching approximately 7.tekota601.29 billion yuan. Hotel and transportation revenue is expected to increase by 10% and 20% year-on-year respectively. For hotels, the average daily rent is expected to remain stable year-on-year, with a collection rate of 8.5% to 9%, and the quarterly adjusted net profit is expected to reach 605 million yuan. The adjusted net profit margin is approximately 14%.