0849 GMT - Tongcheng Travel Holdings' acquisition of Wanda Hotel Development's hotel management arm may help the company generate incremental cash flow and raise its profile, says Morningstar analyst Kai Wang in a research note. The analyst expects the acquisition to add to Tongcheng's cash flow for no more than 5%. "While the hotel management business is unlikely to change Tongcheng's valuation materially, the incremental cash flow is still accretive to the company," Wang says. He says it raises the profile of its online brand into higher-end hotels, as Tongcheng looks to appeal to a wider customer base. The analyst maintain a fair value estimate for Tongcheng at HK$27 per share. Shares last traded 2.2% higher at HK$20.80. (tracy.qu@wsj.com)
(END) Dow Jones Newswires
April 24, 2025 04:49 ET (08:49 GMT)
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