China's Tuniu Q4 revenue rises on package tours strength

Overview

• China online travel firm's Q4 revenue rose 20.3% yr/yr, driven by package tours

• Net income for Q4 was RMB1.5 mln, compared to a net loss in Q4 2024

• Company announced a three-year shareholder return plan with dividends and buybacks

Outlook

• Tuniu expects Q1 2026 net revenues between RMB125.7 mln and RMB131.6 mln

Result Drivers

• PACKAGE TOUR REVENUE - Revenues from package tours increased by 35.3% yr/yr, driven by growth in organized and self-guided tours

• COST REDUCTIONS - Co achieved ongoing cost reductions and efficiency improvements through operational optimizations supported by new technologies

• HIGHER COST OF REVENUES - Cost of revenues increased by 62.5% yr/yr, impacting gross profit margins

Company press release: ID:nPnbcnGcGa

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "strong buy"

• The average consensus recommendation for the leisure & recreation peer group is "buy."

• Wall Street's median 12-month price target for Tuniu Corp is $1.70, about 150% above its March 4 closing price of $0.68

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 27 three months ago

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