HK Stock Market Move | TRIP.COM-S (09961) rises nearly 3%; holiday performance supports third-quarter revenue; Citi believes the company's worst period may be over.

TRIP.COM-S (09961) rose nearly 3%, up 1.89% as of press time, at HK$312.2, with a turnover of HK$172 million. On the news front, Citi released a research report stating that it expects Trip.com Group to announce its third-quarter results between mid and late November. The bank expects Trip.com's third-quarter total revenue to rise 3% year-on-year to RMB 18.9 billion, in line with market expectations; gross margin is expected to be 81.3%, adjusted operating margin is expected to be 31.4%, and adjusted profit is expected to be approximately RMB 5.3 billion, in line with market expectations. The bank maintains its earnings forecasts for Trip.com for 2026 to 2028, maintains its target price at US$61, maintains its "Buy" rating, and believes the worst period may be over. Citi noted that although industry performance was relatively weak during the summer vacation and the commission rates of domestic hotel and transportation businesses were affected, the Mid-Autumn and National Day Golden Week performance was solid, which is expected to support third-quarter revenue. The bank believes that the market's focus on the results will be management's commentary on the outlook for domestic hotel commission rates and margins in the fourth quarter, as uncertainty remains over commission rates for hotel operators during the off-season.