[ET Net News Agency, 24 November 2020] Jefferies Research lowered its target price for
Tongcheng-Elong (TCEL) (00780) to HK$17.3 from HK$19 and maintained its "buy" rating.
The research house said TCEL's 3Q results are largely in line with consensus. Excluding
the impact of international travel and pre-purchase of inventories, domestic revenue is
expected to grow 3%-8% in 4Q. In 2021, Jefferies expects TCEL to put more emphasis on user
acquisitions and ramp up its annual paying user base, which is important for long-term
growth.
Jefferies lifted its net profit for FY2020 to RMB962m from RMB949m but trimmed its net
for FY2021-22 to RMB1,563m and RMB2,245m from RMB2,373m and RMB3,210m respectively. (KL)