HK Stock Market Move | TRIP.COM-S (09961) fell over 4% after previously estimating that Q2 revenue growth would decrease to 3%-8% year-on-year. Travel demand may slow down due to multiple factors.

TRIP.COM-S (09961) fell over 4%, currently leading the decline among blue chips. As of the report's publication, it has dropped by 4.6%, trading at HKD 328, with a transaction volume of HKD 673 million. In terms of news, Trip.com Group announced last night that it will hold a board meeting on September 14 to approve the financial results for the three and six months ending June 30, 2026, and their publication. Previously, the company anticipated that its net operating revenue in the second quarter would grow by approximately 3% to 8% year-on-year. Compared to the first quarter, the growth rate is expected to slow significantly, which will have a corresponding impact on the profit margins and earnings performance for the quarter. This result is primarily influenced by macro adverse factors such as high energy prices and geopolitical fluctuations. Additionally, on July 25 of this year, Trip.com received an administrative penalty decision from the State Administration for Market Regulation, totaling fines of RMB 5.18 billion. Morgan Stanley released a research report stating that the regulatory resolution for Trip.com has eliminated long-term risks and maintained momentum in gaining market share overseas. However, tourism demand is slowing due to local macroeconomic headwinds, extreme weather, and geopolitical risks. Morgan Stanley has lowered Trip.com's revenue forecasts for 2026 to 2028 by 1% to 3%, and the earnings per share estimates by 2% to 7%.