Tongcheng Travel Holdings Ltd

00780: XHKG (HKG)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	HKD 62.00	Mkzjd	Hsdnmpbq

Tongcheng Could See Near-Term Weakness as China Travel Demand Is Likely Decelerating

Kai Wang

Oct 4, 2023

Business Strategy and Outlook

We expect Tongcheng Travel’s revenue to return to growth as China relaxes its reopening policies, which should allow its citizens to travel with fewer restrictions. We expect near-term revenue to increase modestly, driven by recovery of the travel industry. Assuming no return of lockdown headwinds in China, we expect Tongcheng’s revenue to increase 10%-15% per year in the near to midterm.

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