China's Tuniu Q2 gross profit falls on higher marketing spend
TOUR•Outlook
- Tuniu expects Q3 2026 net revenues of RMB202.1 mln to RMB212.2 mln
- Company sees Q3 2026 revenue rising 0% to 5% year-over-year
Overview
- China online leisure travel firm's Q2 revenue grew 3% yr/yr, driven by packaged tours
- Gross profit for Q2 fell 11% yr/yr as cost of revenues rose sharply
- Company expects Q3 revenue to rise up to 5% yr/yr
Key details
| Metric | Actual |
|---|---|
| Q2 Revenue | RMB 138.92 mln |
| Q2 Net Income | RMB 345,000 |
| Q2 Gross Profit | RMB 76.44 mln |
| Q2 Operating Expenses | -RMB 82.53 mln |
The one available analyst rating on the shares is "buy". The average consensus recommendation for the leisure & recreation peer group is "buy". The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 18 three months ago.
Result drivers
- Packaged tours - Revenue growth was mainly driven by increased sales of organized tours, according to the company
- Marketing spend - Higher sales and marketing expenses were mainly due to increased promotion spending
