[ET Net News Agency, 26 November 2019] Morgan Stanley likes Tongcheng-Elong Holdings'
(00780) 3Q results beat, strong 4Q outlook, new growth initiatives, cheap valuation (12x
2020 P/E, 8x ex-cash), relative immunity to macro factors and competition, and lower-tier
cities exposure.
The research house maintained its "overweight" rating on Tongcheng-Elong, with a target
price of HK$16.
Morgan estimated offline to online initiatives help driving room night growth of 60% in
4Q. Tongcheng-Elong expects total revenue to grow 25-30%, driven by hotels (38-43%),
transport (10-15%) and others (>100%). (KL)