Community Star
BABA Diamond Holder$TRIP.COM-S(09961.HK)
Today I bought Trip.com after reviewing its financials data and valuation ratio. I believe it is the right time to invest fundamentally sound company.
Right now, the stock is weighed down by China’s ongoing SAMR antitrust investigation which is expected to wrap up and be announced any day now.
It’s fundamentals stay rock-solid:💪🏽
✅ Fortress balance sheet: Net cash of HK$49.7 billion. Enough to pay off all debt completely, with plenty left over
✅ Interest coverage ~34x: No risk of trouble servicing debt anytime soon
✅ Low P/E and P/B: This comes from regulatory uncertainty and not weak business. Trip.com still runs strongly with high margins and ample liquidity.
Once the result is out, the biggest unknown will be gone and that is when the real value can shine through.
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