Motong: Tongcheng Yilong’s profitability and recovery momentum is strong and maintains overweight rating

　　JPMorganPublishresearch reportRefers to, in response to Beijing’s stricter travel control measures,Tongcheng Yilong(00780) The short-term situation is still challenging, but still believes that the group is the fastest recovering, most profitable and cheapest online travel agency (OTA), maintaining its “overweight” rating and target price of 23 Hong Kong dollars.

Morton said,Tongcheng YilongManagement expects that revenue in the fourth quarter will drop by 5 to 10% to RMB 1.76 billion to RMB 1.86 billion compared with the same period in 2019, which is 20% lower than market expectations, but is clearly better than the industry trend.In terms of profit, the group’s non-IFRS net profit is expected to be 220 million to 270 million yuan, which means that itsNet profitThe rate is still the highest in the industry. The report mentioned that, on the whole, it is believed that the group will continue to have first-class profitability and recovery momentum in local tourism next year.

The bank lowered the group’s revenue forecast for the 2021-2022 fiscal year by 2 to 7% to reflect the tightening of tourism control measures, and lowered its earnings per share by 8 to 14%, but the forecast for 2023 has remained largely unchanged.

(Article source: Economic Link China Station)

Article source: Economic Link China Station

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Original title: “Foreign Investment” Motong: Tongcheng Yilong’s profitability and recovery momentum are strong, maintain the rating of Overweight