Citi maintains a Buy rating on TONGCHENGTRAVEL due to its strategic acquisition of DIDA INC, which is expected to create synergies in the transportation business. However, concerns about competition in the ride-hailing industry and DIDA INC's smaller scale and financial outlook lead to a cautious view on the extent of these synergies. The target price is set at HKD25, reflecting a discount to historical averages due to slower revenue growth.
