• Reiterate Buy Entry – 285 Target – 325 Stop Loss – 270
  • Trip.com Group Limited, formerly Ctrip.com International, Ltd., is a travel service provider in China that provides accommodation booking, transportation ticketing, package tours and corporate travel management. The company aggregates hotel and transportation information to help leisure and business travelers make reservations. The company helps leisure travelers book travel packages and guided tours and helps corporate clients manage their travel needs. The company also offers a range of travel-related services to meet the different booking and travel needs of leisure and business travelers, including visitor reviews, attraction tickets, travel-related financial services, car services, travel insurance services and passport services. The company also offers package tours for independent leisure travelers, including tour groups, semi-tour groups and private groups, as well as package tours that require different transportation arrangements (such as cruise, buses or self-driving).
  • According to Security Daily, the number of travel orders for the Dragon Boat Festival reserved by Ctrip (Trip.com) surged by 135% YoY.  The longest school holiday from July to August is coming soon. Although global tourism is still far from pre-pandemic levels, China’s domestic tourism has been recovering steadily. Tourist numbers during the recent Labour Day Holiday jumped by 100% YoY to 230mn. The upcoming summer is the peak season for tourism, favouring the recovery of the company’s businesses. 
  • 1Q21 revenue decreased by 13.2% YoY to RMB4.1bn. Net profit attributable to shareholders turned positive, reporting at RMB1.78bn with a 78% QoQ growth. The company has delivered positive net profits for three consecutive quarters since 2Q20.
  • Updated market consensus of the estimated growth for FY22 is 122.9%, which translates to 25.8x forward PE. FY21 EPS is expected to be HK$0.656 compared to -HK$0.084 in FY22. The FY21F PE is 57.6x. Bloomberg consensus average 12-month target price is HK$376.33.
9961 HK (Source: Bloomberg)