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

• Market Cap: HK$322.37B
• Dividend Yield: 0.48%
• Average Volume (3M): 1.78M
• 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: 64
• Industry: Travel Services
• EPS (TTM): 6.46
• Shares Outstanding: 689,450,260
• 10 Day Avg. Volume: 1,443,040
• 30 Day Avg. Volume: 1,775,243
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$606.33
• Price Target Upside: 23.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 70 Outperform
• Price Target: HK$533.00 ▲(9.00% Upside)

Trip.com's strong financial performance and positive earnings call sentiment are the most significant factors driving its score. While technical analysis presents mixed signals, the company's reasonable valuation supports a favorable overall assessment. Cash flow challenges are a concern, but strategic growth and AI integration provide a robust outlook.

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.

Growth Prospects

Maintain BUY on Trip.com as there is a positive outlook on its long-term growth prospects, supported by the recovery of flight capacity and robust growth of its overseas business.

Technology and Efficiency

The company is expected to benefit from strong travel demand and improved efficiency with wider use of AI tools.

Negative Factors

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.

Revenue Challenges

There is a decrease in domestic air ticket revenue due to a decrease in average selling price.

Trip.com Group Ltd. Business Overview & Revenue Model

Company Description

Trip.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 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. demonstrates strong profitability and revenue growth, with a solid balance sheet. However, cash flow challenges pose potential risks.

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
EBITDA	14.99B	12.14B	4.15B	1.09B	491.00M
Net Income	17.07B	9.92B	1.95B	-741.00M	-1.58B
Balance Sheet
Total Assets	242.58B	219.14B	191.69B	191.86B	187.25B
Cash, Cash Equivalents and Short-Term Investments	79.57B	59.34B	44.03B	50.76B	44.23B
Total Debt	40.32B	45.57B	46.38B	51.36B	57.00B
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: Neutral
• Last Price: 489.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9961, the sentiment is Neutral. The current price of 489 is below the 20-day moving average (MA) of 493.62, above the 50-day MA of 481.88, and below the 200-day MA of 496.22, indicating a neutral trend. The MACD of 3.20 indicates Positive momentum. The RSI at 50.67 is Neutral, neither overbought nor oversold. The STOCH value of 18.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	70 Outperform	HK$322.37B	18.33	12.48%	0.48%	15.77%	55.52%
Sector *	61 Neutral	$16.54B	10.12	-9.02%	3.34%	1.44%	-22.51%
CG6	―	€27.96M	4.73	15.18%	―	―	―
0780	69 Neutral	HK$46.67B	18.68	11.72%	0.93%	34.16%	40.10%
1701	62 Neutral	HK$116.00M	10.93	7.26%	―	128.45%	9.18%
8069	50 Neutral	HK$23.14M	―	-1.51%	―	23.13%	-226.21%
1901	49 Neutral	HK$262.08M	―	-61.77%	―	29.04%	-393.69%

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.

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.