External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

Tongcheng Travel Holdings  / Equity Bottom-Up

<ul><li>Tongcheng Travel (“TC”) delivered a strong quarter in 1Q24, with revenue +50% YoY (3% above consensus) and adj. net profit +11% YoY (4% above consensus).</li><li>We see high visibility for TC to continuously gain share in 2Q24E, with healthy margin profile. For 2Q24E, we forecast total revenue +49% YoY, boosted by booming travel demand in multiple holidays and international business recovery.</li><li>Core OTA would grow 23.5%, in which hotel/transportation/others revenue +12%/17%/92% YoY, in our estimates. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Tongcheng Travel (“TC”) delivered a strong quarter in 1Q24, with revenue +50% YoY (3% above consensus) and adj. net profit +11% YoY (4% above consensus).We see high visibility for TC to continuously gain share in 2Q24E, with healthy margin profile. For 2Q24E, we forecast total revenue +49% YoY, boosted by booming travel demand in multiple holidays and international business recovery.Core OTA would grow 23.5%, in which hotel/transportation/others revenue +12%/17%/92% YoY, in our estimates. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Tongcheng Travel (780 HK) - Resilient Travel Consumption to Continue

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>While adjusted net profit of <a href="https://www.smartkarma.com/entities/tongcheng-elong-holdings-ltd" target="_blank" data-smartkarma-citation="entities:27363:1" rel="noopener">Tongcheng Travel Holdings Ltd (780 HK)</a> plummeted in 4Q22, the positive momentum in 1Q23 as revealed supports a sharp recovery in FY23.</li>
<li>Its huge exposure to lower-tier cities will fuel outlook while increase in monetisation will support profitability rebound. Success at Blackwhale membership program is another growth engine.  </li>
<li>Management is confident that revenue growth and better efficiency will lead the return of FY23 margin to pre-pandemic levels. Net cash position (12% of share price) is an added strength. </li>
</ul>


While adjusted net profit of Tongcheng Travel Holdings Ltd (780 HK) plummeted in 4Q22, the positive momentum in 1Q23 as revealed supports a sharp recovery in FY23.
Its huge exposure to lower-tier cities will fuel outlook while increase in monetisation will support profitability rebound. Success at Blackwhale membership program is another growth engine.  
Management is confident that revenue growth and better efficiency will lead the return of FY23 margin to pre-pandemic levels. Net cash position (12% of share price) is an added strength. 


Tongcheng Travel (780 HK): Best for Capturing Lower-Tier Cities' Growth

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tongcheng-travel-holdings-ltd" target="_blank" data-smartkarma-citation="entities:27363:1" rel="noopener">Tongcheng Travel Holdings (780 HK)</a> has a solid FY23 and 4Q23 with massive net profit recovery. Earnings momentum for FY24 and FY25 look to stay impressive.</li>
<li>FY23 is a record year of profit, demonstrating its ability to gain market share after COVID-19 disruption. Further volume growth will lead to better operating leverage.</li>
<li>Net cash reached Rmb2.3bn, up 90.4% YoY, showcasing its cash-generating ability. The first-time dividend payout also reflected management's confidence on the outlook.</li>
</ul>



Tongcheng Travel Holdings (780 HK) has a solid FY23 and 4Q23 with massive net profit recovery. Earnings momentum for FY24 and FY25 look to stay impressive.
FY23 is a record year of profit, demonstrating its ability to gain market share after COVID-19 disruption. Further volume growth will lead to better operating leverage.
Net cash reached Rmb2.3bn, up 90.4% YoY, showcasing its cash-generating ability. The first-time dividend payout also reflected management's confidence on the outlook.


Tongcheng Travel (780 HK): Riding the High Tide

<ul><li>The three-day Qingming Festival holiday embraced booming demand, with domestic tourist trips +11.5% and tourism revenue +12.7% (both vs. the 2019 level), according to the Ministry of Culture and Tourism.</li><li>Tongcheng Travel (TC) kept its strong momentum during the Qingming Festival, with above-industry growth and solid ASP &amp; take rate trends.</li><li>Its domestic hotel room nights surged 70% YoY, and transportation ticketing volume was resilient at &gt;20% YoY.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The three-day Qingming Festival holiday embraced booming demand, with domestic tourist trips +11.5% and tourism revenue +12.7% (both vs. the 2019 level), according to the Ministry of Culture and Tourism.Tongcheng Travel (TC) kept its strong momentum during the Qingming Festival, with above-industry growth and solid ASP &amp; take rate trends.Its domestic hotel room nights surged 70% YoY, and transportation ticketing volume was resilient at &gt;20% YoY.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Tongcheng Travel (780 HK) - Continued Outperformance During Qingming

<ul><li>We reiterate Tongcheng Travel (TC) as one of our top picks, for its resilient organic growth, M&amp;A synergies, outbound expansion and capital return.</li><li>After another upbeat quarter, we think TC has continuously demonstrated its share gain and solid travel consumption.</li><li>Looking ahead, we keep positive on its core OTA performance (forecasting revenue +25% YoY in FY24E), driven by multichannel strategy and overseas expansion. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We reiterate Tongcheng Travel (TC) as one of our top picks, for its resilient organic growth, M&amp;A synergies, outbound expansion and capital return.After another upbeat quarter, we think TC has continuously demonstrated its share gain and solid travel consumption.Looking ahead, we keep positive on its core OTA performance (forecasting revenue +25% YoY in FY24E), driven by multichannel strategy and overseas expansion. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Tongcheng Travel (780 HK) - More Synergies from Consolidation of Tourism

China

Tongcheng Travel Holdings Limited operates as an online travel agency. The Company provides transportation ticketing, accommodation reservation, value added travel products sales, and other services. Tongcheng Travel Holdings provides its services throughout China.

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Tongcheng Travel Holdings (780 HK)

Tongcheng Travel (780 HK) - Resilient Travel Consumption to Continue

Tongcheng Travel (“TC”) delivered a strong quarter in 1Q24, with revenue +50% YoY (3% above consensus) and adj. net profit +11% YoY (4% above...

CMB International

Tongcheng Travel (780 HK): Best for Capturing Lower-Tier Cities' Growth

Positive business momentum in 1Q23 supports a sharp recovery in FY23. Huge exposure to lower-tier cities and increase in monetisation will support...

Osbert Tang, CFA

Tongcheng Travel (780 HK): Riding the High Tide

According to www.fliggy.com, outbound travel bookings during the 5-day Labour Day holiday have doubled this year. This was achieved on a high base...

Osbert Tang, CFA

Tongcheng Travel (780 HK) - Continued Outperformance During Qingming

Tongcheng Travel (TC) kept its strong momentum during the Qingming Festival, with above-industry growth and solid ASP & take rate trends.

CMB International

Tongcheng Travel (780 HK) - More Synergies from Consolidation of Tourism

We reiterate Tongcheng Travel (TC) as one of our top picks, for its resilient organic growth, M&A synergies, outbound expansion and capital return.

CMB International

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