UBS: TONGCHENGTRAVEL (00780) Adjusted Net Profit for the Last Quarter Slightly Beats Expectations, Rating "Buy"

UBS released a research report stating that TONGCHENGTRAVEL (00780) had a net income increase of 14.2% in the last quarter, beating the bank and market expectations of 1.7% and 1% respectively; Core OTA income increased by 17.5%, surpassing the bank's expectation of 0.1%; Tourism business income was 10.7% higher than the bank's forecast; Gross profit margin was 65.9%, in line with the bank's expectation; Adjusted net profit reached 780 million yuan, surpassing the bank and market forecasts by 3.5% and 3.3% respectively. The bank expects the market to focus on the company's demand outlook, industry competition, profit margin trends, and the latest developments in new businesses. The target price for Tongcheng is 26.5 Hong Kong dollars, with a "buy" rating.