---
title: "China Merchants Jinling International: Maintains TONGCHENGTRAVEL target price at HKD 24, rating \"Buy\""
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/232851672.md"
description: "Jiangyin International maintains a target price of HKD 24 for TONGCHENGTRAVEL, with a rating of \"Buy.\" It is expected that revenue in Q4 2024 will increase by 35% year-on-year to HKD 4.2 billion, exceeding expectations by 5%. The OTA business is expected to grow by 16% in 2025, with operating profit margins continuing to improve. The proportion of international business revenue is expected to reach high single digits by the end of the year, breakeven. Core OTA business revenue is expected to grow by 20%, with ticket volume growth outpacing the industry and international ticket volume increasing by over 130%. Overall adjusted net profit is projected to be HKD 660 million, a year-on-year increase of 37%"
datetime: "2025-03-23T08:47:02.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/232851672.md)
  - [en](https://longbridge.com/en/news/232851672.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/232851672.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/232851672.md) | [繁體中文](https://longbridge.com/zh-HK/news/232851672.md)


# China Merchants Jinling International: Maintains TONGCHENGTRAVEL target price at HKD 24, rating "Buy"

According to Zhitong Finance APP, Jiangyin International released a research report stating that it maintains a target price of HKD 24 and a buy rating for TONGCHENGTRAVEL (00780). The bank stated that the company's revenue/profit for the fourth quarter of 2024 is expected to be 5%/7% higher than anticipated. It is expected that the OTA business will grow by 16% in 2025, with a strong certainty of continuous improvement in operating profit margins year-on-year. Under the premise of stable business growth, the company continuously optimizes marketing efficiency, driving frequency and ARPU growth through cross-selling and improving the precision of operations for existing users. The proportion of international business revenue is expected to reach high single digits by the end of the year, achieving breakeven with minimal impact on overall profits.

The report indicated that revenue for the fourth quarter of 2024 is expected to increase by 35% year-on-year to RMB 4.2 billion, exceeding the bank's/Bloomberg market expectations by 5%. Among this, core OTA business revenue is expected to grow by 20% (accommodation/transportation +29%/+17%). The growth rate of ticket volume is faster than the industry, continuously gaining market share, with international ticket volume expected to increase by over 130% year-on-year for the whole year. Hotel ADR is expected to remain flat year-on-year, with optimized marketing efficiency driving an increase in monetization rate, and international overnight stays expected to increase by over 110% year-on-year for the whole year. The adjusted operating profit margin for core OTA is 28%, with marketing expenses as a percentage of revenue decreasing year-on-year to 30%, better than the bank's expected 33%. The overall adjusted net profit is expected to be RMB 660 million, a year-on-year increase of 37%, exceeding the bank's/Bloomberg market expectations by 7%.

The bank mentioned that in 2024, the daily active users (DAU) of the TONGCHENG app doubled, with annual paid users reaching a new high of 240 million. By the end of the fourth quarter, ARPU increased by 44% year-on-year, and the average consumption frequency increased to 8.1 times (compared to 5.5 times in 2019), significantly enhancing user stickiness. In addition, the company’s self-developed travel large model "Chengxin AI" has integrated with DeepSeek to provide intelligent travel solutions

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