In "Major Banks," China International Capital Corporation lowered Trip.com’s target price to 545.1 yuan, with fourth-quarter performance exceeding expectations, continuing to urge a buy

According to a research report by China International Capital Corporation (CICC), Trip.com (09961.HK) reported a 21% year-on-year revenue growth in the fourth quarter to RMB 15.4 billion, which is 4% higher than market expectations, mainly driven by better-than-expected revenue from accommodation, travel vacations, and business travel management, although partially offset by increased marketing expenses. The non-GAAP operating profit was RMB 3.2 billion, slightly exceeding market expectations by 1.5%; the non-GAAP net profit was RMB 3.5 billion, 8% higher than market expectations.

Considering potential regulatory and internationalization investment risks, the firm has lowered its revenue and non-GAAP net profit forecasts for 2026 by 1% and 13%, to RMB 69.1 billion and RMB 17.1 billion, respectively, and introduced forecasts for 2027 of RMB 75.4 billion and RMB 18.5 billion. The firm is optimistic about the company's long-term value and competitiveness, maintaining an "outperform" rating, but has reduced the target prices for Trip.com (TCOM.US) on the US and Hong Kong stock markets by 24% and 23%, to USD 70 and HKD 545.1, respectively