TOUR - Tuniu stock rises on optimistic forecast amid reopening for China

2023-03-17 07:07:13 ET

Tuniu Corporation ( NASDAQ: TOUR ) stock rose sharply on Friday after the company voiced confidence on 2023 travel trends in China.

For the fourth quarter, the company noted the continued impact of pandemic restrictions as revenue fell over 60% and EPADS came in at break-even. Gross margins also contracted 190 basis points to 44.6% year over year.

However, management voiced confidence on an inflection in the Chinese travel industry in 2023.

“Although 2022 was the most difficult year for travel industry since the pandemic outbreak, we were pleased to see the beginning of a recovery in the fourth quarter,” CEO Donald Dunde Yu commented. “In the new year, as domestic and outbound travel markets gradually re-open, the release of pent-up travel demand is further supporting the industry's rebound. Tuniu will seize this window of opportunity and leverage the strengths which we have built up over the years in supply chain, products, services and sales to achieve a rapid and steady business recovery.”

For the first quarter of 2023, the company expects net revenues in the range of RMB60.1M ($8.71M) to RMB64.3M ($9.3M), up 45% to 55% year-over-year.

Shares of Tunio Corporation ( TOUR ) rose 5.37% in premarket action on Friday.

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