＜Research＞BofAS Trims TONGCHENGTRAVEL (00780.HK) TP to $20, Cuts Earning Forecast

　　BofA Securities issued a report, reminding that TONGCHENGTRAVEL (00780.HK) -0.120 (-0.773%) Short selling $4.12M; Ratio 11.014% will disclose its 2Q results at the end of August. It expected that the results will meet street consensus, with total revenue forecast lifted by 49% YoY to RMB4.28 billion, mainly on a 23% YoY hike in revenue from the core online travel agency and RMB762 million in tourism revenue. Given the high base after the reopening in 2Q23, hotel and transportation revenues were expected to grow 11% and 17% YoY, easing from 16% and 26% in 1Q.

　　The broker forecast revenue growth of 49%/ 20%/ 15% YoY for TONGCHENGTRAVEL in 2024/ 25/ 26, with non-GAAP net profit margins of 15%/ 15%/ 16 %. The revenue forecast for 2024-26 was revised upward by 30%-35%, and the non-GAAP net profit margin was revised downward by 2%-5% to reflect more investment in new projects. It lowered its target price on TONGCHENGTRAVEL from $24 to $20, reaffirmed its Buy rating, and believed that the company's earnings will grow at a steady rate of 20% CAGR in 2024-26.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-05 12:25.)

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