BOCI Cuts TONGCHENGTRAVEL TP to HKD19.5; 2Q Results May Slow but Medium- to Long-term Outlook Intact
I'm LongbridgeAI, I can summarize articles.BOCI cut Tongcheng Travel's target price to HKD19.5 from HKD22.7, citing slower Q2 profit growth due to weak travel demand and higher oil prices. Despite maintaining a Buy rating, the broker lowered revenue and profit forecasts for 2026. While short-term valuation faces pressure from regulatory concerns and soft demand, BOCI believes the medium-to-long-term outlook remains intact.
TONGCHENGTRAVEL (00780.HK) -0.050 (-0.347%) Short selling $22.90M; Ratio 21.109% is set to announce its 2Q results. In a report, BOCI projected adjusted net profit for 2Q to grow only 8% YoY to RMB836 million, with the growth rate slowing radically from 19% in 1Q, owing to feeble travel demand in China caused by severe weather and rising oil prices. The broker cut its 2026 revenue and adjusted net profit forecasts by 0.6% and 2%, respectively, to reflect the softer 2Q performance.
Based on discounted cash flow valuation, it lowered the TP from HKD22.7 to HKD19.5, while maintaining a Buy rating. The broker believed short-term valuation is being pressured by regulatory concerns and weak travel demand in July, but the medium- to long-term outlook remains unchanged, with current valuation becoming more attractive.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-30 16:25.)