Travelcom's Earnings Soar Over 7% Amid Industry Growth, Maintaining Buy Rating

Travelcom (00780) has seen its earnings soar over 7%, with the stock price rising 4.58% as of the announcement, currently trading at HK$20.56, with a turnover of HK$3.831 billion.

Travelcom has released its earnings report. The financial statement shows that in the first half of 2025, Travelcom achieved revenue of HK$90.5 billion, up 11.5% year-on-year; adjusted EBITDA was HK$23.4 billion, up 35.2% year-on-year; and net profit was HK$15.6 billion. Notably, in the first half of 2025, Travelcom's other income, including online vacation bookings, reached HK$13.6 billion, up 24.1% year-on-year.

Goldman Sachs has released a research report maintaining its buy rating for Travelcom (00780), with a target price of HK$23 (equivalent to 15x/12x Non-IFRS P/E for the 25th and 26th quarters). The upward space is 17%, with the company currently trading at 13x/11x Non-IFRS P/E for the 25th and 26th quarters, respectively. In Travelcom's 2Q25 earnings report, revenue rose 10% to HK$46.7 billion, slightly higher than market expectations of 0.6%; non-IFRS attributable net profit was HK$7.7 billion, exceeding market expectations by 3.3%, with a Non-IFRS net profit ratio of 16.6%, attributed to the improvement in marketing expense efficiency.