Fu Rui: Maintain "buy" rating on TRIP.COM-S (09961), target price raised to HK$603.

Furui released a research report stating that it maintains a "buy" rating on TRIP.COM-S (09961), with a target price raised from 581 Hong Kong dollars to 603 Hong Kong dollars. It forecasts a year-on-year increase of 19% in total revenue for the fourth quarter to 12.3 billion yuan, originally expected to be 12 billion yuan, believing that the company continues to demonstrate strong execution and seize overseas opportunities. The report stated that Ctrip Group's total revenue in the third quarter increased by 16% year-on-year to 15.9 billion yuan, exceeding market expectations by 1.4% and 2.2% respectively. Net profit under non-GAAP reached 5.96 billion yuan, higher than market and the bank's expectations of 4.77 billion and 5.47 billion yuan. The bank cited Ctrip management stating that the future outlook of the tourism industry is resilient after the National Day holiday. Looking ahead to the fourth quarter, the bank expects that Ctrip's domestic hotel and airline ticket business revenue will be driven by volume growth, while the average daily rate (ADR) of domestic hotels will improve year-on-year. The company is expected to achieve rapid growth, especially in the Asia-Pacific region (APAC).