UOB Kay Hian Raises TRIP.COM-S TP to HKD508 as Antitrust Penalty Settlement Removes Regulatory Uncertainty
I'm LongbridgeAI, I can summarize articles.UOB Kay Hian raised TRIP.COM-S's target price to HKD508, maintaining a 'Buy' rating. The broker stated that the recent RMB5.18 billion antitrust penalty settlement removes regulatory uncertainty. While short-term domestic revenue growth may slow to 3%-8% due to compliance adjustments, overseas business remains strong with over 30% growth. Consequently, the impact on core profitability is limited, and the valuation discount is expected to narrow as risks are released.
China's State Administration for Market Regulation officially imposed administrative penalties totaling RMB5.18 billion on TRIP.COM-S (09961.HK) -5.400 (-1.519%) Short selling $267.47M; Ratio 34.280% over alleged abuse of market dominance through exclusive cooperation arrangements and minimum price requirements. The penalties include confiscation of illegal gains amounting to RMB1.66 billion and fines of RMB3.52 billion. In a research report, UOB Kay Hian said the penalty decision formally concludes the antitrust investigation and removes the core regulatory uncertainty surrounding the company. Although compliance adjustments and related operational changes may cause short-term disruption to domestic operations, leading to a slowdown in 2Q26 revenue YoY growth to 3%-8%, the broker believes the overall impact on core profitability remains limited given overseas business continues to maintain rapid growth of over 30%.
UOB Kay Hian noted that management provided relatively cautious guidance for 2Q26 results, expecting net revenue YoY growth of 3%-8%, mainly reflecting elevated air ticket prices, tight capacity on some long-haul routes, and short-term disruptions arising from compliance-related business adjustments. Among segments, accommodation booking revenue is expected to grow 8%-13% YoY to between RMB6.8 billion and RMB6.9 billion; transportation ticketing revenue is expected to decline 0%-5% YoY to between RMB5.2 billion and RMB5.3 billion, mainly dragged by a 20%-30% decline in domestic transportation revenue following policy and value-added service adjustments; packaged tours and corporate travel businesses are expected to remain resilient, with YoY growth forecast at 8%-13% and 11%-16%, respectively.
UOB Kay Hian maintained its "Buy" rating on TRIP.COM-S (09961.HK) -5.400 (-1.519%) Short selling $267.47M; Ratio 34.280% and raised its TP from HKD475 to HKD508. The new TP corresponds to a projected 2027 P/E ratio of 16.7x, broadly in line with global peers. As the regulatory investigation concludes and risks are released, the broker expects the company's valuation discount to gradually narrow and undergo re-rating.(su/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-28 12:25.)