CICC: Tongcheng Travel maintains outperform industry rating with a target price of HK$22.

Zhongjin released a research report stating that it maintains a outperform rating on Tongcheng Travel, with a target price of HK$22, representing a 40% upside potential. The company is currently trading at 8x/7x 26e/27e Non-IFRS P/E. Tongcheng Travel's 1Q26 revenue was 50.1 billion yuan, a 14% increase from the same period last year, exceeding market expectations by 2%, mainly driven by better-than-expected accommodation and catering business. Non-IFRS net profit attributable to shareholders was 9.36 billion yuan, exceeding market expectations by 2.8%, with a corresponding Non-IFRS net profit margin of 18.7%.