[ET Net News Agency, 5 December 2019] Jefferies Research initiated coverage on
Tongcheng-Elong Holdings (TCEL)(00780) with a "buy" rating and a target price of HK$17.
The research house said TCEL is one of the leading players in online travel and is
differentiated from peers in that it is a sole operator in hotel and transportation under
the payment channel of Weixin.
With support from strategic shareholders Tencent and Ctrip, TCEL acquires new users at
low acquisition cost and broadens its hotel offering by leveraging the huge inventory of
Ctrip, Jefferies noted.
As a one-stop-shop online travel service provider, TCEL embraces opportunities by
penetrating lower-tier cities, generating synergies between transportation and
accommodation throughout the entire travel process, Jefferies added. (KL)