Trip.com Group Ltd. (9961) AI Stock Analysis

• Market Cap: HK$321.19B
• Dividend Yield: 0.48%
• Average Volume (3M): 2.41M
• Price to Earnings (P/E): 18.3
• Beta (1Y): 1.22
• Revenue Growth: 15.77%
• EPS Growth: 55.52%
• Country: HK
• Employees: 41,073
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Travel Services
• EPS (TTM): 6.46
• Shares Outstanding: 689,450,260
• 10 Day Avg. Volume: 3,274,094
• 30 Day Avg. Volume: 2,408,200
• PEG Ratio: -0.22
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 71.49
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$605.75
• Price Target Upside: 25.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 76 Outperform
• Price Target: HK$546.00 ▲(13.28%Upside)

Trip.com Group Ltd. benefits from strong financial performance and positive earnings call sentiment. While technical indicators suggest some near-term caution, the company's strategic growth and AI initiatives offer promising long-term prospects. Valuation appears fair, supporting a balanced investment outlook.

Positive Factors

Growth Prospects

The company is expected to experience a compound annual growth rate of 16% in revenue from FY23 to FY26, driven by around 30% growth in outbound and international business.

Market Position

Trip.com's leading OTA position is defended by extensive hotel coverage and good service with its large call centre network.

Negative Factors

Market Competition

Irrational market competition could lead to higher subsidies, posing a risk.

Marketing Expenses

Overall marketing expense ratio is expected to rise on international business expansion, leading to a 3ppt drag in overall non-GAAP earnings margin in FY25F.

Trip.com Group Ltd. Business Overview & Revenue Model

Company Description

Trip.com Group Limited operates as a travel service provider for accommodation reservation, transportation ticketing, packaged tours and in-destination, corporate travel management, and other travel-related services in China and internationally. The company acts as an agent for hotel-related transactions and selling air tickets, as well as provides train, long-distance bus, and ferry tickets; travel insurance products, such as flight delay, air accident, and baggage loss coverage; and air-ticket delivery, online check-in and seat selection, express security screening, real-time flight status tracker, and airport VIP lounge services. It also provides independent leisure travelers bundled packaged-tour products comprising group, semi-group, and customized and packaged tours with various transportation arrangements, such as air, cruise, bus, and car rental services. In addition, the company offers integrated transportation and accommodation services; destination transportation and ticket, activity, insurance, visa, and tour guide services; user support, supplier management, and customer relationship management services; and in-destination products and services. Further, it provides its corporate clients with business visit, incentive trip, meeting and conference, travel data collection and analysis, industry benchmark, cost saving analysis, and travel management solutions; and Corporate Travel Management System, an online platform that integrates information management, online booking and authorization, online enquiry, and travel reporting systems. Additionally, the company offers online advertising and financial services. It operates under the Ctrip, Qunar, Trip.com, and Skyscanner brands. The company was formerly known as Ctrip.com International, Ltd. and changed its name to Trip.com Group Limited in October 2019. Trip.com Group Limited was founded in 1999 and is headquartered in Shanghai, the People's Republic of China.

How the Company Makes Money

Trip.com Group Ltd. generates revenue primarily through the provision of travel-related services. Its key revenue streams include commissions from hotel reservations, transportation ticketing (including flights and train tickets), and package tours. The company also earns from service fees charged to customers and suppliers. Trip.com Group has strategic partnerships with global airlines, hotels, and other travel service providers, which enhance its service offerings and contribute to its revenue. Additionally, the company benefits from its investment in technology and data analytics, which allows it to offer personalized travel services and improve customer experience, further driving sales and profitability.

Trip.com Group Ltd. Financial Statement Overview

Summary

Trip.com Group Ltd. has demonstrated strong revenue growth and improved profitability, with a high gross profit margin and improved net and EBIT margins. The company's balance sheet is healthy, with a solid equity ratio and manageable debt. However, recent cash flow challenges pose a risk, with zero operating cash flow in the most recent period.

Income Statement

Trip.com Group Ltd. has demonstrated robust growth in its income statement. The gross profit margin is high, indicating efficient cost management. Net profit margin and EBIT margin have improved significantly from previous years, showcasing enhanced profitability. The revenue growth rate is impressive, reflecting strong business momentum.

Balance Sheet

The balance sheet shows a healthy equity ratio, indicating strong capitalization. The debt-to-equity ratio is manageable, suggesting a balanced leverage position. However, there has been a noticeable increase in stockholders' equity, which strengthens the financial stability of the company.

Cash Flow

Cash flow analysis reveals challenges, with operating cash flow at zero in the most recent period, indicating potential cash management issues. Historical free cash flow has grown, but the recent absence of free cash flow highlights potential concerns in liquidity and cash generation capabilities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
53.29B	44.51B	20.04B	20.02B	18.32B
	Gross Profit
43.30B	36.39B	15.53B	15.43B	14.29B
	EBIT
14.18B	11.32B	2.86B	-319.00M	-1.07B
	EBITDA
14.99B	12.14B	4.15B	1.09B	491.00M
	Net Income Common Stockholders
17.07B	9.92B	1.95B	-741.00M	-1.58B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
79.57B	59.34B	44.03B	50.76B	44.23B
	Total Assets
242.58B	219.14B	191.69B	191.86B	187.25B
	Total Debt
40.32B	45.57B	46.38B	51.36B	57.00B
	Net Debt
-10.96B	3.98B	27.90B	30.16B	37.59B
	Total Liabilities
99.10B	96.13B	78.67B	81.40B	85.68B
	Stockholders Equity
142.55B	122.18B	112.28B	109.68B	100.35B
Cash Flow		Free Cash Flow
19.03B	21.40B	2.14B	1.90B	-4.36B
	Operating Cash Flow
19.63B	22.00B	2.64B	2.48B	-3.82B
	Investing Cash Flow
-6.05B	5.92B	1.14B	-4.15B	-3.82B
	Financing Cash Flow
-6.71B	-2.55B	-6.72B	3.92B	6.03B

Trip.com Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 482.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9961, the sentiment is Negative. The current price of 482 is below the 20-day moving average (MA) of 490.80, above the 50-day MA of 476.58, and above the 200-day MA of 481.91, indicating a bearish trend. The MACD of -1.45 indicates Positive momentum. The RSI at 42.80 is Neutral, neither overbought nor oversold. The STOCH value of 33.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9961.

Trip.com Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9961	76 Outperform	HK$321.19B	18.27	12.48%	0.48%	15.77%	55.52%
Sector *	63 Neutral	$6.94B	11.34	2.80%	4.26%	2.68%	-24.70%
TCTZF		$601.09B	21.84	21.25%	0.87%	―	―
SBMFF		$10.87B	46.32	6.14%	1.22%	―	―
MPNGF		$112.41B	19.76	23.82%	―	―	―
9988	81 Outperform	HK$2.26T	15.92	13.02%	2.74%	3.92%	27.80%
0780	76 Outperform	HK$52.81B	21.19	11.72%	0.66%	34.16%	40.10%

Trip.com Group Ltd. Corporate Events

Trip.com Group Reports Strong Q1 2025 Growth

Trip.com Group Limited reported robust growth in its international businesses for the first quarter of 2025, with overall reservations on its international OTA platform increasing by over 60% year-over-year. The company saw a significant surge in inbound travel bookings and outbound hotel and air ticket bookings surpassing pre-COVID levels. The company’s net revenue for the quarter reached RMB13.8 billion, marking a 16% increase from the same period in 2024, driven by strong travel demand and favorable travel policies. The company remains committed to delivering innovative and customer-centric solutions to sustain growth and provide value to stakeholders.

The most recent analyst rating on (HK:9961) stock is a Buy with a HK$550.00 price target. To see the full list of analyst forecasts on Trip.com Group Ltd. stock, see the HK:9961 Stock Forecast page.

Trip.com Group Ltd. Announces Key Resolutions for Upcoming AGM

Trip.com Group Ltd. has announced its upcoming Annual General Meeting (AGM) scheduled for June 30, 2025, in Shanghai. Key resolutions to be considered include the re-election of Mr. Rong Luo as a director and the authorization for the Board to repurchase up to 10% of the company’s shares listed on the Hong Kong Stock Exchange. This move could potentially impact the company’s stock value and shareholder returns.

The most recent analyst rating on (HK:9961) stock is a Buy with a HK$550.00 price target. To see the full list of analyst forecasts on Trip.com Group Ltd. stock, see the HK:9961 Stock Forecast page.

Trip.com Group Announces Record Date for Shareholders’ Meeting

Trip.com Group Ltd. has announced the record date for determining the eligibility of shareholders to attend and vote at its upcoming annual general meeting. The record date is set for May 30, 2025, with specific instructions for holders of ordinary shares and American depositary shares (ADSs) on how to participate. This announcement is crucial for shareholders as it outlines the procedural details necessary for their involvement in the company’s governance, potentially impacting their investment decisions.

The most recent analyst rating on (HK:9961) stock is a Buy with a HK$600.00 price target. To see the full list of analyst forecasts on Trip.com Group Ltd. stock, see the HK:9961 Stock Forecast page.

Trip.com Group Ltd. to Announce Q1 2025 Financial Results

Trip.com Group Ltd. has announced that its audit committee will meet on May 16, 2025, to approve the financial results for the first quarter of 2025, which will be published on May 20, 2025. The company will also host a conference call on May 19, 2025, to discuss these results, indicating a transparent approach to stakeholder communication and potentially impacting investor relations positively.

Trip.com Group Ltd. Files 2024 Annual Report with SEC

Trip.com Group Ltd. has filed its annual report on Form 20-F for the fiscal year ending December 31, 2024, with the U.S. Securities and Exchange Commission. This filing is part of their regulatory compliance as a publicly listed company on the Hong Kong Stock Exchange, reflecting their commitment to transparency and providing stakeholders with insights into their financial performance and strategic direction.