UB#TRIP RP2805A(60485.HK)

Citi: Short to medium-term agency-style AI has little impact on the industry, maintains "Buy" rating for Trip.com and TONGCHENGTRAVEL

Citigroup released a research report indicating that the stock price adjustments of Trip.com and TONGCHENGTRAVEL are partly due to investors' concerns about agent-based artificial intelligence (AI). The report believes that in the short to medium term, AI will have little impact on the online travel industry, as leading platforms have strong bargaining power and can offer better prices. Nevertheless, online travel platforms may collaborate with large language model applications to maintain their market position. Citigroup maintains a "Buy" rating on Trip.com and TONGCHENGTRAVEL, with target prices of $82 and HKD 28, respectively

Top 5 HK Stock Gainers/Losers (>100B) (2.4)

YANKUANG ENERGY(01171) rose 10.58%, with a trading turnover 1.6 Billion HKD, and a year-to-date rose 29.3%. EASTROC(09980) rose 9.53%, with a trading turnover 819.7 Million HKD, and a year-to-date rose 11.2%. MINIMAX-WP(00100) fell 8.43%, with a trading turnover 691.1 Million HKD, and a year-to-date rose 222.4%. KNOWLEDGE ATLAS(02513) fell 6.58%, with a trading turnover 254.1 Million HKD, and a year-to-date rose 95.5%.

Travel platform stocks under pressure, Trip.com down over 5%, Meituan hits nearly two-year low

Travel platform stocks are under pressure, with Trip.com falling 5.49% to HKD 458.2, and Meituan hitting a nearly two-year low, currently at HKD 91.2, down 2.15%. The Hong Kong stock market opened lower, with the Hang Seng Index down 158 points to 26,676 points, with a turnover of HKD 119.278 billion

The Hang Seng TECH Index fell over 2% intraday, KINGDEE INT'L dropped nearly 14%, and KINGSOFT fell nearly 6%

Trip.com Group predicts longer trips and premium travel to rise in 2026 Lunar New Year, with cross-border stays of 7+ nights up by 40% and long-haul bookings by over 50%. Comfort-focused choices like first-class flights and luxury hotel stays see strong growth.

Tourists are increasingly opting for extended trips, embarking on cross-border stays lasting seven nights or more, marking a nearly 40% surge. Additionally, long-haul bookings have escalated by over 50%. The focus now lies on enhancing comfort, evident in the rising popularity of first-class and business-class flights, along with a surge in bookings for five-star hotel accommodations.