＜Research＞Citi Cuts TONGCHENGTRAVEL (00780.HK) TP to $23, Projects 2Q Results Broadly In Line

　　Citi Research report wrote that TONGCHENGTRAVEL (00780.HK) -0.620 (-4.235%) Short selling $15.70M; Ratio 18.066% will announce its 2Q24 results in mid-August. The broker forecast the company's quarterly revenue will be 1% below street consensus, while adjusted profit will be in line. The broker said rainy weather in June hijacked all businesses, causing revenue to fall slightly short of the brokers earlier forecast.

　　The broker noted that the hotel industry had a quiet start to the summer season and the company's performance in 3Q24 was uncertain, while the company may have been less affected by the decline in hotel ADR as the company has a larger exposure to lower-end hotels.

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　　The broker revised down its profit forecasts for 2024-26 by 2% each, and lowered its TP from $25 to $23. However, the broker maintained its Buy rating on TONGCHENGTRAVEL on the basis of its decent organic growth with potential from outbound and its own app over the long term.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-18 16:25.)

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