- Buy Entry – 218 Target – 235 Stop Loss – 210
- 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 travellers make reservations. The company helps leisure travellers 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 travellers, 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 travellers, 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).
- Tailwinds of Asia tourism. Japan will fully reopen to foreign tourists from 11th October onwards. Tourists will no longer need a visa to enter the country. Taiwan will reopen its borders from 13 October onwards. Arrivals will be asked to self-monitor for seven days. From 26 October, travellers arriving in Hong Kong will no longer have to go into mandatory hotel quarantine.
- 2Q22 results review. Net revenue dropped by 32% YoY and 2% QoQ to RMB4.0bn due to the continued disruptions resulting from the COVID-19 resurgence in China. Gross profit dropped by 35.0% YoY and 0.2% QoQ to RMB3.0bn. Net profit attributable to company shareholders was RMB69mn compared to a net loss of RMB647mn during the same period in 2021 due mainly to effective cost control.
- Updated market consensus of the EPS in FY22/23 is RMB1.55/RMB7.14 respectively, which translates to 121.0x/26.3x forward PE. Bloomberg consensus average 12-month target price is HK$262.31.