BOCOM International maintains a "buy" rating on TRIP.COM-S (09961) with a target price of HKD 605.

BOCOM INTL released a research report stating that it maintains a "buy" rating for TRIP.COM-S (09961) with a target price of 605 Hong Kong dollars. The bank still sees potential in the release of travel demand, cost savings brought about by domestic operational leverage and improved AI response rates, which will partially ease short-term profit margin pressure. The report points out that total revenue in the fourth quarter of 2024 is expected to increase by 24% year-on-year, while adjusted net profit margin is expected to decrease by 2 percentage points due to increased investment in Trip.com's overseas brand marketing. BOCOM INTL predicts that Ctrip's revenue still has room for upward revision, and expects the company's revenue to increase by 17% in 2025, higher than the guidance of 14-15%, which is about 3% higher than the bank's previous forecast, mainly due to the bank's more optimistic outlook on outbound business and Trip.com's growth prospects. Due to the short-term impact of overseas investment, the bank has lowered its 2025 profit forecast by 3%.