---
title: "JP Morgan stated that TONGCHENGTRAVEL lacks clear short-term catalysts and maintains a \"Neutral\" rating"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/280404634.md"
description: "JP Morgan released a report stating that TONGCHENGTRAVEL's performance in the fourth quarter of last year was stable but not surprising, with revenue increasing by 14% year-on-year and net profit margin rising to 16.1%. The bank believes that the performance has little impact on future profit forecasts, with market focus on the company's outlook and the progress of regulatory investigations. The report mentioned that regulators have issued warnings regarding competitive behavior among online travel platforms, which may put pressure on short-term market sentiment, but the impact on long-term profitability is limited. Morgan Stanley maintains a \"Neutral\" rating on TONGCHENGTRAVEL, with a target price of 25 yuan"
datetime: "2026-03-25T02:58:27.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/280404634.md)
  - [en](https://longbridge.com/en/news/280404634.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/280404634.md)
---

# JP Morgan stated that TONGCHENGTRAVEL lacks clear short-term catalysts and maintains a "Neutral" rating

JP Morgan published a research report stating that TONGCHENGTRAVEL (00780.HK) had steady but unremarkable performance in the fourth quarter of last year, with revenue increasing by 14% year-on-year, in line with expectations. The non-International Financial Reporting Standards (IFRS) net profit margin increased by 50 basis points year-on-year to 16.1%, also in line with expectations. The firm believes that the performance will have little impact on future profit forecasts and market sentiment, with market focus shifting to the company's outlook and management's comments on the progress of industry regulatory investigations, changes in the competitive landscape, and this year's demand outlook.

The report mentioned that on March 23, the Beijing Municipal Bureau of Market Regulation, along with the business and tourism departments, interviewed 12 platforms, including TONGCHENG and other major online travel platforms, pointing out the first batch of "involution" competition violations, including depriving merchants of pricing autonomy, unreasonable rules, and false advertising, and issued warning letters requiring rectification within a specified period. The firm believes this is another signal from market regulators to regulate and curb competition among online travel platforms, which may exert pressure on short-term market sentiment, but has limited impact on long-term profitability.

JP Morgan pointed out that TONGCHENG's valuation is not high, but due to the lack of clear short-term catalysts, it maintains a "neutral" rating with a target price of 25 yuan

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