Citi: Expects TONGCHENGTRAVEL to benefit from potential close collaboration with Tencent WeChat AI, reiterates "Buy" rating
Citi released a research report stating that it maintains a "Buy" rating for TONGCHENGTRAVEL with a target price of HKD 25. This is based on a forecast of 14 times non-IFRS earnings per share for 2026, which is a discount compared to the historical average of 21 times before the pandemic, reflecting a slowdown in revenue growth. It is reported that Tencent Holdings Limited has begun testing its AI prototype on the WeChat application. Given TONGCHENGTRAVEL's "all-in WeChat" strategy, its refined and comprehensive mini-program features, its relationship with Tencent, and its position as the only online travel agency (OTA) service provider within the WeChat wallet, if Tencent launches an AI prototype on WeChat, the firm believes TONGCHENGTRAVEL will be one of the beneficiaries within the WeChat ecosystem. The firm stated that TONGCHENGTRAVEL believes AI will significantly enhance its platform through several key initiatives, including recommending travel options to users and providing an end-to-end planning AI assistant, as well as AI-driven customer service. In addition to its current collaboration with Tencent's "Yuanbao," the company is deepening its cooperation with the Tencent ecosystem while also deploying services on external AI platforms
According to the Zhitong Finance APP, Citigroup has released a research report maintaining a "Buy" rating for TONGCHENGTRAVEL (00780) with a target price of HKD 25. This is based on a forecast of 14 times non-International Financial Reporting Standards (non-IFRS) earnings per share for 2026, which is a discount compared to the historical average of 21 times before the pandemic, reflecting a slowdown in revenue growth.
It is reported that Tencent Holdings Limited (00700) has begun testing its AI agent prototype on the WeChat application. Given TONGCHENGTRAVEL's "all-in WeChat" strategy, its refined and comprehensive mini-program features, its relationship with Tencent, and its status as the only online travel agency (OTA) service provider within the WeChat wallet, if Tencent launches an AI agent on WeChat, the firm believes TONGCHENGTRAVEL will be one of the beneficiaries within the WeChat ecosystem.
The firm stated that TONGCHENGTRAVEL believes AI will significantly enhance its platform through several key initiatives, including recommending travel options to users and providing an end-to-end planning AI assistant, as well as AI-driven customer service. In addition to its current collaboration with Tencent's "Yuanbao," the company is deepening its cooperation with the Tencent ecosystem while also deploying services on external AI platforms
