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

• Market Cap: HK$378.41B
• Dividend Yield: 0.41%
• Average Volume (3M): 2.55M
• Price to Earnings (P/E): 20.4
• Beta (1Y): 1.21
• Revenue Growth: 17.30%
• EPS Growth: 27.51%
• Country: HK
• Employees: 41,073
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Services
• EPS (TTM): 7.86
• Shares Outstanding: 689,450,260
• 10 Day Avg. Volume: 2,020,985
• 30 Day Avg. Volume: 2,546,414
• PEG Ratio: 0.27
• Price to Book (P/B): 2.33
• Price to Sales (P/S): 6.22
• P/FCF Ratio: 17.43
• 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$651.67
• Price Target Upside: 9.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 74 Outperform
• Price Target: HK$618.00 ▲(3.43% Upside)

Trip.com Group Ltd. demonstrates strong financial performance with significant revenue growth and profitability improvements. The technical indicators suggest a positive trend, though caution is warranted due to overbought signals. The valuation is reasonable, and the earnings call reflects a positive outlook with strategic initiatives and shareholder returns. However, cash flow challenges and competitive pressures are risks to monitor.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand and effective market positioning, supporting long-term business expansion and profitability.

AI and Technology Integration

Innovative AI integration improves user experience and operational efficiency, providing a competitive edge and supporting sustainable growth.

International Expansion

Successful international expansion enhances market reach and diversifies revenue streams, reducing reliance on domestic markets and boosting resilience.

Negative Factors

Competitive Landscape

Increased competition may erode market share and necessitate higher marketing spend, affecting long-term profitability and market position.

Pricing Pressure

Pricing pressure in domestic travel can compress margins, impacting profitability and necessitating strategic adjustments to maintain competitiveness.

Cash Flow Challenges

Cash flow issues can limit investment capacity and operational flexibility, potentially affecting the company's ability to fund growth initiatives.

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. 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. Financial Statement Overview

Summary

Trip.com Group Ltd. has shown significant improvement in profitability and revenue growth, reflecting strong operational performance in the travel services industry. The balance sheet is robust, with a solid equity base and manageable debt levels. However, recent cash flow challenges could pose risks if not addressed, impacting future financial flexibility.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.29B	53.29B	44.51B	20.04B	20.02B	18.32B
Gross Profit	46.33B	43.30B	36.39B	15.53B	15.43B	14.29B
EBITDA	19.50B	14.99B	12.14B	960.00M	-393.00M	-209.00M
Net Income	18.05B	17.07B	9.92B	1.40B	-550.00M	-3.25B
Balance Sheet
Total Assets	252.44B	242.58B	219.14B	191.69B	191.86B	187.25B
Cash, Cash Equivalents and Short-Term Investments	80.02B	76.91B	59.34B	42.55B	49.38B	42.92B
Total Debt	39.68B	40.32B	45.57B	46.66B	51.72B	57.41B
Total Liabilities	102.96B	99.10B	96.13B	78.67B	81.40B	85.68B
Stockholders Equity	148.44B	142.55B	122.18B	112.28B	109.68B	100.35B
Cash Flow
Free Cash Flow	0.00	19.03B	21.40B	2.14B	1.90B	-4.36B
Operating Cash Flow	0.00	19.63B	22.00B	2.64B	2.48B	-3.82B
Investing Cash Flow	0.00	-6.05B	5.92B	1.14B	-4.15B	-3.82B
Financing Cash Flow	0.00	-6.71B	-2.55B	-6.72B	3.92B	6.03B

Trip.com Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 597.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 597.5 is above the 20-day moving average (MA) of 551.77, above the 50-day MA of 515.47, and above the 200-day MA of 502.08, indicating a bullish trend. The MACD of 21.70 indicates Negative momentum. The RSI at 73.62 is Negative, neither overbought nor oversold. The STOCH value of 80.68 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. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0780	76 Outperform	52.51B	19.26	9.87%	0.80%	25.29%	47.32%
9961	74 Outperform	HK$378.41B	20.37	12.88%	0.41%	17.30%	27.51%
1701	72 Outperform	149.00M	5.50	7.05%	―	80.68%	131.62%
0265	63 Neutral	286.87M	8.73	7.39%	―	2.10%	1.68%
1901	53 Neutral	339.46M	-12.64	-71.71%	―	68.29%	41.90%
8069	50 Neutral	31.04M	-22.35	-2.13%	―	-8.32%	84.82%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Trip.com Group Ltd. Corporate Events

Trip.com Completes Repurchase Offer for Senior Notes

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

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

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.