tiprankstipranks
Trending News
More News >
Trip.com Group Ltd. (HK:9961)
:9961
Advertisement

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

Compare
29 Followers

Top Page

HK:9961

Trip.com Group Ltd.

(9961)

Rating:77Outperform
Price Target:
HK$565.00
▲(10.24% Upside)
Trip.com Group Ltd. demonstrates strong financial performance with impressive revenue growth and profitability. The technical indicators suggest a positive trend, and the earnings call reflects strategic successes and international expansion. However, cash flow challenges and a modest dividend yield slightly temper the overall score.
Positive Factors
Competitive Advantage
Trip.com's leading OTA position is defended by extensive hotel coverage and good service with its large call centre network.
Revenue Growth
Trip's revenue is expected to maintain solid growth, driven by strong demand for domestic and international travel.
Negative Factors
Domestic Air Ticket Revenue
There is a decrease in domestic air ticket revenue due to a decrease in average selling price.
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. (9961) vs. iShares MSCI Hong Kong ETF (EWH)

Trip.com Group Ltd. Business Overview & Revenue Model

Company DescriptionTrip.com Group Ltd. (9961) is a leading online travel agency that operates in the global travel industry, providing comprehensive travel services including accommodation reservation, transportation ticketing, packaged tours, and corporate travel management. Headquartered in Shanghai, China, the company offers a one-stop travel solution through its user-friendly platforms, catering to a wide range of travelers across the world.
How the Company Makes MoneyTrip.com Group Ltd. makes money through a diversified revenue model primarily consisting of commission fees and service charges. The company earns commissions from hotel bookings, airline ticket sales, and other travel-related reservations made through its platform. Additionally, Trip.com Group charges service fees for providing value-added services such as travel insurance and VIP membership programs. The company also generates revenue through its corporate travel management services by charging fees for managing business travel arrangements. Significant partnerships with airlines, hotels, and other travel service providers enhance its product offerings and contribute to its earnings.

Trip.com Group Ltd. Earnings Call Summary

Earnings Call Date:Aug 27, 2025
(Q1-2025)
|
% Change Since: |
Next Earnings Date:Dec 10, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong overall performance with significant growth in revenue, international expansion, and AI-driven enhancements. Despite challenges in hotel ADR and corporate travel revenue, the company demonstrated resilience and strategic success in various segments, particularly with inbound and international travel.
Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Net revenue increased by 16% year-over-year to RMB13.8 billion, driven by strong travel consumption and demand across segments.
Inbound Travel Surge
Inbound travel bookings increased by approximately 100% year-over-year, with hotel bookings from key visa-free countries in APAC surging by over 240%.
AI-Driven Enhancements
AI tools like TripGenie saw a 50% increase in user session duration, and AI chatbots handled over 80% of inquiries, improving customer satisfaction.
International Expansion Success
Global travel bookings on the international OTA platform grew by over 60% year-over-year, with APAC as a major growth engine.
Resilient Domestic Market
Domestic hotel bookings continued to see double-digit growth year-over-year, reflecting strong consumer appetite for local exploration.
Senior Traveler Market Growth
Old Friends Club users and their GMV grew by 100% year-over-year, highlighting the potential of the silver generation market.
Successful Cost Management
Adjusted EBITDA grew by 7% year-over-year, showcasing operational efficiency and cost management.
Negative Updates
Muted Hotel ADR Performance
Hotel ADR in the first quarter decreased by high single digits compared to last year, although prices stabilized moving into the second quarter.
Corporate Travel Revenue Decline
Corporate travel revenue decreased by 18% quarter-over-quarter due to normal seasonality.
Challenges in Thailand
Outbound travel faced short-term disruptions in Thailand, although recovery was supported by demand for long-haul destinations.
Company Guidance
During the Trip.com Group's Q1 2025 earnings call, the company reported a 16% year-over-year increase in net revenue, reaching RMB13.8 billion, and a 7% growth in adjusted EBITDA. The call highlighted a 100% year-over-year surge in inbound travel bookings, particularly from South Korea, Thailand, Malaysia, and Indonesia. The company also noted that its AI-driven travel assistant, TripGenie, saw a 50% increase in user engagement. Mobile platforms contributed 70% of international bookings, and hotel bookings from key visa-free APAC countries rose by 240%. Additionally, Trip.com reported outbound travel recovery to 83% of pre-pandemic levels, with outbound hotel and air bookings exceeding 2019 levels by more than 120%. The company has also committed to a $600 million share buyback program, with $84 million repurchased so far.

Trip.com Group Ltd. Financial Statement Overview

Summary
Trip.com Group Ltd. demonstrates strong profitability and revenue growth, with a solid balance sheet. However, cash flow challenges pose potential risks.
Income Statement
87
Very Positive
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
75
Positive
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
62
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue53.29B44.51B20.04B20.02B18.32B
Gross Profit43.30B36.39B15.53B15.43B14.29B
EBITDA14.99B12.14B4.15B1.09B491.00M
Net Income17.07B9.92B1.95B-741.00M-1.58B
Balance Sheet
Total Assets242.58B219.14B191.69B191.86B187.25B
Cash, Cash Equivalents and Short-Term Investments79.57B59.34B44.03B50.76B44.23B
Total Debt40.32B45.57B46.38B51.36B57.00B
Total Liabilities99.10B96.13B78.67B81.40B85.68B
Stockholders Equity142.55B122.18B112.28B109.68B100.35B
Cash Flow
Free Cash Flow19.03B21.40B2.14B1.90B-4.36B
Operating Cash Flow19.63B22.00B2.64B2.48B-3.82B
Investing Cash Flow-6.05B5.92B1.14B-4.15B-3.82B
Financing Cash Flow-6.71B-2.55B-6.72B3.92B6.03B

Trip.com Group Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price512.50
Price Trends
50DMA
484.24
Positive
100DMA
480.05
Positive
200DMA
497.20
Positive
Market Momentum
MACD
6.40
Negative
RSI
62.13
Neutral
STOCH
85.82
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9961, the sentiment is Positive. The current price of 512.5 is above the 20-day moving average (MA) of 492.91, above the 50-day MA of 484.24, and above the 200-day MA of 497.20, indicating a bullish trend. The MACD of 6.40 indicates Negative momentum. The RSI at 62.13 is Neutral, neither overbought nor oversold. The STOCH value of 85.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9961.

Trip.com Group Ltd. Risk Analysis

Trip.com Group Ltd. disclosed 78 risk factors in its most recent earnings report. Trip.com Group Ltd. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
We have limited business insurance coverage. Q4, 2023

Trip.com Group Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
HK$337.87B19.3512.48%0.45%15.77%55.52%
61
Neutral
$17.75B12.56-5.49%3.02%1.43%-14.12%
€27.98M4.7815.18%
76
Outperform
HK$51.15B18.3312.26%0.84%25.29%47.32%
70
Outperform
HK$131.00M12.247.26%128.45%9.18%
54
Neutral
HK$32.67M-1.51%-8.32%84.82%
53
Neutral
HK$424.32M-61.77%29.04%-393.69%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:9961
Trip.com Group Ltd.
512.50
147.33
40.35%
DE:CG6
Orient Victory Travel Group Company Limited
0.09
-0.06
-40.00%
HK:1701
Tu Yi Holding Co., Ltd.
0.13
-0.01
-7.14%
HK:1901
Feiyang International Holdings Group Limited
0.38
0.29
322.22%
HK:0780
Tongcheng Travel Holdings Limited
21.44
7.27
51.31%
HK:8069
WWPKG Holdings Company Limited
0.04
0.00
0.00%

Trip.com Group Ltd. Corporate Events

Trip.com Completes Repurchase Offer for Senior Notes
Jun 30, 2025

Trip.com Group Ltd. has announced the completion of the repurchase right offer for its 1.50% Exchangeable Senior Notes due 2027. This strategic financial move is expected to impact the company’s financial structure and could influence its market positioning, potentially affecting stakeholders and investors.

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 Successfully Concludes 2025 Annual General Meeting
Jun 30, 2025

Trip.com Group Limited announced that all proposed resolutions were successfully passed at their 2025 Annual General Meeting of Shareholders held in Shanghai. This development reflects the company’s ongoing commitment to its strategic goals and could potentially strengthen its position in the global travel industry.

The most recent analyst rating on (HK:9961) stock is a Buy with a HK$581.00 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 Reports Strong Q1 2025 Growth
May 19, 2025

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
May 19, 2025

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
May 15, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025