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BOCI Cuts TONGCHENGTRAVEL TP to HKD19.5; 2Q Results May Slow but Medium- to Long-term Outlook Intact
2026-07-30 16:57:50
TONGCHENGTRAVEL (00780.HK) 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 suppressed travel demand in July, but the medium- to long-term outlook remains unchanged, with current valuation becoming more attractive.
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