Investment Rating - The report maintains a "Buy" rating for Tongcheng Travel (0780.HK) [5] Core Insights - Tongcheng Travel reported a significant revenue growth of 51.3% year-on-year in Q3 2024, reaching 4.992 billion CNY, driven by strong performance in its core OTA business and vacation services [3] - The adjusted EBITDA for Q3 2024 was 1.319 billion CNY, reflecting a 51.6% increase year-on-year, while the adjusted net profit was 910 million CNY, up 46.6% year-on-year [3] - The company continues to deepen its market penetration, particularly in lower-tier cities, with over 87% of registered users from non-first-tier cities [3] Financial Performance - Q3 2024 revenue breakdown: accommodation booking revenue was 1.378 billion CNY (+22.2% YoY), transportation ticketing revenue was 2.027 billion CNY (+20.64% YoY), and other core OTA revenues were 609 million CNY (+23.7% YoY) [3] - The net profit margin for Q3 2024 was 18.2%, slightly down by 0.6 percentage points compared to the same period last year [3] - The company’s sales costs increased significantly by 117.55% year-on-year to 1.827 billion CNY, primarily due to rising costs in vacation service products and increased employee benefits [3] User Growth and Market Strategy - The average monthly paying users reached 46 million, a 5% increase year-on-year, while annual paying users totaled 232 million, up 3.4% year-on-year [3] - The report highlights the collaboration with Tencent and Alipay as a key factor in user growth, particularly in lower-tier markets [3] - The company aims to enhance its competitive advantage through mergers and acquisitions, expanding its presence in accommodation, vacation, and outbound travel sectors [3] Future Projections - The projected net profits for Tongcheng Travel are expected to be 1.942 billion CNY in 2024, 2.485 billion CNY in 2025, and 2.958 billion CNY in 2026, with corresponding P/E ratios of 20x, 16x, and 13x respectively [3][4]
同程旅行：24Q3收入高增速，核心OTA业务持续发力