[ET Net News Agency, 11 March 2021] J.P. Morgan lifted its target price for
Tongcheng-Elong (00780) to HK$20 from HK$19 and maintained its "overweight" rating.
The research house forecasted 4Q 2020 revenue to fall 8% to RMB1.8bn, slightly shy of
its guidance of (-5-0%), as domestic travel demand softened sharply from year-end,
particularly for transportation ticketing, amidst the resurgence of COVID.
JPM modeled GMV (gross merchandise volume) to decline 13%, which however would be
partially offset by higher take rates (JPM estimate: 4.3%, versus 4.1% a year ago),
similar to the trends throughout 2020.
It projected non-IFRS net profit to fall 11% y/y to RMB293m in 4Q, with 16.4% net margin
(versus 16.9% a year ago), in-line with the low-end of its guidance (RMB300-350m). (KL)