China's Tongcheng Travel slumps on Q1 margin decline

Tongcheng Travel Holdings

22/05/2024 08:54

** Shares of Tongcheng Travel Holdings  0780.HK  drop 13.8%
to HK$18.28, on course for biggest one-day pct fall on record
    ** Stock top pct loser on Hang Seng Tech Index  .HSTECH  and
Hang Seng Composite Index  .HSCI 
    ** Co reports Q1 revenue up 49.5% Y/Y, and adjusted net
profit up 10.9%
    ** However, adjusted net margin decreased to 14.4% from
19.5% Y/Y, and adjusted EBITDA margin fell to 21.2% from 28.3%
    ** Citi maintains "buy" saying it views the results as
decent, while lower profitability from newly acquired asset,
margins contraction were expected
    ** UOB Kay Hian keeps "buy" rating saying the results are
above consensus but net margin is below estimates
    ** Jefferies maintains "buy" rating saying the results beat
and full-year outlook is intact
    ** Hang Seng Tech Index  .HSTECH  adds 0.2% while Hang Seng
Index  .HSI  slips 0.2%
    ** Tongcheng up 27.4% YTD

($1 = 7.2393 Chinese yuan renminbi)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))