BOCOM INTL: Raises TONGCHENG TRAVEL (00780) target price to HK$25.5, expects first quarter performance to meet expectations.

BOCOM INTL released a research report stating that TONGCHENGTRAVEL (00780) is expected to see an increase in tourism activity during the upcoming May Day holiday compared to the past two years, with a price-earnings ratio of 16 times that of comparable companies in the industry. Therefore, the bank has raised its target price by 6.3% from HK$24 to HK$25.5 and maintains a "buy" rating. The report indicates that the bank expects TONGCHENGTRAVEL's first quarter performance to meet expectations, with expected revenues increasing by 12% year-on-year to RMB 4.35 billion and adjusted net profit of RMB 760 million. It is also expected that its core OTA revenue will increase by 16% year-on-year, with adjusted operating profit increasing by 28%.