Goldman Sachs lowers the target price for Trip.com Group to 650 yuan, rating "Buy"

Goldman Sachs published a research report indicating that Trip.com Group (09961.HK) achieved performance in the fourth quarter of last year that met the upper limits of both company and market expectations, with a non-GAAP net profit of RMB 3.5 billion, benefiting from higher-than-expected revenue growth, particularly in the accommodation business (up 21%) and other businesses (up 54%). The EBITDA margin decreased by 0.9 percentage points year-on-year to 20.8%, in line with expectations, reflecting a shift in revenue structure towards the loss-making international platform (accounting for 18% of revenue, compared to 13% in the third quarter), mainly due to the group's seasonal factor of including Golden Week travel bookings in the third quarter.

The bank has adjusted its forecasts for the group's adjusted non-GAAP net profit for the fiscal years 2026 and 2027 down by 2% and up by 5%, respectively, while lowering its target price from HKD 676 to HKD 650, maintaining a "Buy" rating