CLSA: TONGCHENGTRAVEL Expected to Gain Little from TRIP.COM-S Antitrust Probe; Rating Remains Hold
Agentic AI and OTAs: The narrative of agentic AI overtaking online travel agencies (OTAs) is prevalent in the US, but stricter supply chain controls in China mitigate this risk for local OTAs.
TONGCHENGTRAVEL's Future: CLSA forecasts that TONGCHENGTRAVEL's hotel management business will significantly contribute to revenue growth by 2026, maintaining a target price of $22 and a Hold rating.
Impact of Antitrust Investigation: CLSA notes that TONGCHENGTRAVEL may not benefit from the antitrust investigation of TRIP.COM-S, as a large portion of its hotel trading volume relies on TRIP.COM-S' inventory.
Market Reactions: Citi reports that agentic AI's impact on the sector is limited in the short to mid-term, maintaining Buy ratings for both Trip.com and TONGCHENGTRAVEL.
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CLSA: TONGCHENGTRAVEL Expected to Gain Little from TRIP.COM-S Antitrust Probe; Rating Remains Hold
Agentic AI and OTAs: The narrative of agentic AI overtaking online travel agencies (OTAs) is prevalent in the US, but stricter supply chain controls in China mitigate this risk for local OTAs.
TONGCHENGTRAVEL's Future: CLSA forecasts that TONGCHENGTRAVEL's hotel management business will significantly contribute to revenue growth by 2026, maintaining a target price of $22 and a Hold rating.
Impact of Antitrust Investigation: CLSA notes that TONGCHENGTRAVEL may not benefit from the antitrust investigation of TRIP.COM-S, as a large portion of its hotel trading volume relies on TRIP.COM-S' inventory.
Market Reactions: Citi reports that agentic AI's impact on the sector is limited in the short to mid-term, maintaining Buy ratings for both Trip.com and TONGCHENGTRAVEL.
HSI Gains 12 Points, Yet Software Stocks and Dotcoms Decline; Coal and Chinese Developers Surge
Market Performance: The HSI closed slightly up at 26,847, while the HSCEI and HSTECH saw minor declines, with total market turnover dropping to $285.433 billion.
Sector Struggles: Software and dotcom sectors faced significant losses, with major companies like TENCENT and MEITU experiencing declines of 3.96% and 11.4%, respectively.
Resource Stocks Rise: Gold and silver prices rebounded, with companies like CHINAGOLDINTL and ZHAOJIN MINING seeing gains, while coal stocks like YANKUANG ENERGY surged by over 10%.
Financial Sector Movements: HSBC and AIA saw slight increases, while HKEX experienced a minor decline; Chinese property developers generally performed well, with several stocks rising between 5% and 10%.
HSI Drops 109 Points at Midday as Software and Tech Stocks Weaken; Kingdee Falls Over 14%
Market Reaction to AI Threat: The software industry faced pressure from AI models by Alphabet and Anthropic, leading to declines in US software stocks and a drop in the Hong Kong bourse, with the HSI down 0.4% in the morning session.
Significant Stock Declines: Major tech companies like Tencent, Bilibili, and Meitu experienced substantial losses, with short selling ratios indicating increased market skepticism.
Broader Tech Sector Impact: Other tech stocks, including Alibaba and JD.com, also saw declines, while semiconductor stocks like SMIC and Hua Hong Semi faced significant drops, reflecting a broader downturn in the tech sector.
Resource Stocks Performance: Gold and silver prices rebounded, and oil stocks gained due to rising refined oil prices in mainland China and geopolitical events, with companies like Sinopec and PetroChina seeing modest increases.
TRIP.COM-S Falls Over 5%, MEITUAN-W Hits Nearly 2-Year Low Amid Travel Restrictions
US Stock Market Reaction: The three major US stock indices softened following the US military's action against an Iranian drone, while precious metals, particularly gold, saw an increase, surpassing the US$5,000 mark.
Hong Kong Stock Market Performance: The Hong Kong Stock Exchange opened lower, with the HSI declining nearly 0.6% to close at 26,676 points, amid significant trading activity.
Travel Platform Stocks Decline: Stocks related to travel platforms, including TRIP.COM and MEITUAN, experienced notable declines, with TRIP.COM dropping over 6% and MEITUAN hitting a nearly two-year low.
Short Selling Activity: There was significant short selling in various stocks, with TRIP.COM and MEITUAN showing high short selling ratios, indicating bearish sentiment among investors.
Citi Assigns Buy Rating to TONGCHENGTRAVEL Due to Attractive Valuation and Strong Fundamentals
4Q25 Results Expectations: TONGCHENGTRAVEL is anticipated to announce its 4Q25 results in mid-March, with revenue and adjusted profit expected to meet market expectations, as per a Citi research report.
Revenue Growth Projections: Citi forecasts a 15.8% year-over-year growth in hotel revenue for 4Q25, driven by recovery in average room revenue and an increase in room nights, alongside improved commission rates in transportation ticketing.
Positive Short-Term Outlook: With reasonable valuations and the upcoming peak travel season during the Spring Festival, Citi maintains a positive short-term outlook on TONGCHENGTRAVEL, keeping its target price at HKD28.
Rating and Valuation: Citi has upheld its Buy rating for TONGCHENGTRAVEL, citing stable fundamentals and the company's resilience in the current market environment.
M Stanley Reveals Ranking of Preferred CN Dotcoms (Table)
Stock Ratings Overview: Various companies including Tencent, Alibaba, and Pinduoduo received an "Overweight" investment rating, with target prices set at HKD735, USD180, and USD148 respectively.
Short Selling Data: Tencent and Meituan experienced significant short selling, with Tencent at $311.31M and a ratio of 3.850%, while Meituan had $565.72M and a ratio of 15.339%.
Market Performance: Kuaishou and JD.com were rated "Equalweight" and "Underweight" respectively, with JD.com expected to see a 93% year-over-year decline in adjusted net profit for Q4.
Related News: Kaiyuan Securities predicts Alibaba's Qianwen will integrate e-commerce models by utilizing APIs from Fliggy and Taobao.
CLSA: TONGCHENGTRAVEL Expected to Gain Little from TRIP.COM-S Antitrust Probe; Rating Remains Hold
Agentic AI and OTAs: The narrative of agentic AI overtaking online travel agencies (OTAs) is prevalent in the US, but stricter supply chain controls in China mitigate this risk for local OTAs.
TONGCHENGTRAVEL's Future: CLSA forecasts that TONGCHENGTRAVEL's hotel management business will significantly contribute to revenue growth by 2026, maintaining a target price of $22 and a Hold rating.
Impact of Antitrust Investigation: CLSA notes that TONGCHENGTRAVEL may not benefit from the antitrust investigation of TRIP.COM-S, as a large portion of its hotel trading volume relies on TRIP.COM-S' inventory.
Market Reactions: Citi reports that agentic AI's impact on the sector is limited in the short to mid-term, maintaining Buy ratings for both Trip.com and TONGCHENGTRAVEL.
HSI Gains 12 Points, Yet Software Stocks and Dotcoms Decline; Coal and Chinese Developers Surge
Market Performance: The HSI closed slightly up at 26,847, while the HSCEI and HSTECH saw minor declines, with total market turnover dropping to $285.433 billion.
Sector Struggles: Software and dotcom sectors faced significant losses, with major companies like TENCENT and MEITU experiencing declines of 3.96% and 11.4%, respectively.
Resource Stocks Rise: Gold and silver prices rebounded, with companies like CHINAGOLDINTL and ZHAOJIN MINING seeing gains, while coal stocks like YANKUANG ENERGY surged by over 10%.
Financial Sector Movements: HSBC and AIA saw slight increases, while HKEX experienced a minor decline; Chinese property developers generally performed well, with several stocks rising between 5% and 10%.
HSI Drops 109 Points at Midday as Software and Tech Stocks Weaken; Kingdee Falls Over 14%
Market Reaction to AI Threat: The software industry faced pressure from AI models by Alphabet and Anthropic, leading to declines in US software stocks and a drop in the Hong Kong bourse, with the HSI down 0.4% in the morning session.
Significant Stock Declines: Major tech companies like Tencent, Bilibili, and Meitu experienced substantial losses, with short selling ratios indicating increased market skepticism.
Broader Tech Sector Impact: Other tech stocks, including Alibaba and JD.com, also saw declines, while semiconductor stocks like SMIC and Hua Hong Semi faced significant drops, reflecting a broader downturn in the tech sector.
Resource Stocks Performance: Gold and silver prices rebounded, and oil stocks gained due to rising refined oil prices in mainland China and geopolitical events, with companies like Sinopec and PetroChina seeing modest increases.
TRIP.COM-S Falls Over 5%, MEITUAN-W Hits Nearly 2-Year Low Amid Travel Restrictions
US Stock Market Reaction: The three major US stock indices softened following the US military's action against an Iranian drone, while precious metals, particularly gold, saw an increase, surpassing the US$5,000 mark.
Hong Kong Stock Market Performance: The Hong Kong Stock Exchange opened lower, with the HSI declining nearly 0.6% to close at 26,676 points, amid significant trading activity.
Travel Platform Stocks Decline: Stocks related to travel platforms, including TRIP.COM and MEITUAN, experienced notable declines, with TRIP.COM dropping over 6% and MEITUAN hitting a nearly two-year low.
Short Selling Activity: There was significant short selling in various stocks, with TRIP.COM and MEITUAN showing high short selling ratios, indicating bearish sentiment among investors.
Citi Assigns Buy Rating to TONGCHENGTRAVEL Due to Attractive Valuation and Strong Fundamentals
4Q25 Results Expectations: TONGCHENGTRAVEL is anticipated to announce its 4Q25 results in mid-March, with revenue and adjusted profit expected to meet market expectations, as per a Citi research report.
Revenue Growth Projections: Citi forecasts a 15.8% year-over-year growth in hotel revenue for 4Q25, driven by recovery in average room revenue and an increase in room nights, alongside improved commission rates in transportation ticketing.
Positive Short-Term Outlook: With reasonable valuations and the upcoming peak travel season during the Spring Festival, Citi maintains a positive short-term outlook on TONGCHENGTRAVEL, keeping its target price at HKD28.
Rating and Valuation: Citi has upheld its Buy rating for TONGCHENGTRAVEL, citing stable fundamentals and the company's resilience in the current market environment.
M Stanley Reveals Ranking of Preferred CN Dotcoms (Table)
Stock Ratings Overview: Various companies including Tencent, Alibaba, and Pinduoduo received an "Overweight" investment rating, with target prices set at HKD735, USD180, and USD148 respectively.
Short Selling Data: Tencent and Meituan experienced significant short selling, with Tencent at $311.31M and a ratio of 3.850%, while Meituan had $565.72M and a ratio of 15.339%.
Market Performance: Kuaishou and JD.com were rated "Equalweight" and "Underweight" respectively, with JD.com expected to see a 93% year-over-year decline in adjusted net profit for Q4.
Related News: Kaiyuan Securities predicts Alibaba's Qianwen will integrate e-commerce models by utilizing APIs from Fliggy and Taobao.
