HK Stock Market Move | TRIP.COM-S (09961) rebounds more than 4%; company's last quarter revenue exceeds expectations; institution points to some pressure on 25-year profit guidance.

TRIP.COM-S (09961) rebounded by over 4%, after the stock plummeted nearly 12% yesterday. As of the report, it rose by 4.46% to HK$482.6, with a turnover of HK$1.746 billion. On the news front, Ctrip Group recently announced its financial performance for the fourth quarter of 2024, with a net operating income of RMB 12.744 billion, an increase of 23.43% year-on-year; net profit attributable to Ctrip Group Limited was approximately RMB 2.157 billion, up by 66.31% year-on-year. For the full year of 2024, net operating income was RMB 53.294 billion, a 19.73% increase year-on-year. Net profit attributable to Ctrip Group Limited was RMB 17.067 billion, up by 72.08% year-on-year. The board of directors has authorized new capital return measures for 2025, including a share repurchase plan, with the authorization and approval to repurchase up to US$400 million worth of common stock and/or ADS; as well as a cash dividend for the fiscal year 2024, totaling approximately US$2 billion. Citi stated that the company's gross profit margin for the last quarter was 79.3%, lower than Citi's forecast of 80.5%; the non-GAAP operating profit margin was 21.6%, slightly below the bank's expected 21.5% but still in line with some investors' predictions. China Securities Co., Ltd. Securities stated that as the leading domestic OTA, the company has solid competitive barriers, and is expected to benefit from domestic policy related to boosting demand in 2025, while the recovery of cross-border business still has room for improvement. Due to the increase in the proportion of international business, profit guidance for 2025 has been slightly reduced, possibly as a buffer for future quarters. It is recommended to pay attention to changes in the domestic hotel and travel industry, the progress of international capacity recovery, and the company's profit release pace.