HK Stock Market Move | TRIP.COM-S (09961) rose nearly 6% in morning trading; Citi expects the company's third-quarter revenue and adjusted profit to meet expectations.

TRIP.COM-S (09961) rose nearly 6% in morning trading. As of press time, it was up 5.08% at HK$314.2, with turnover of HK$278 million. On the news front, Trip.com is expected to announce its third-quarter results between mid- and late November. Citi expects third-quarter total revenue to rise 3% year on year to RMB18.9 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 about RMB5.3 billion, in line with market expectations. Citi noted that although industry performance was relatively weak during the summer holiday period and the commission rates for domestic hotel and transportation businesses were affected, performance during the Mid-Autumn and National Day Golden Week was solid and is expected to support third-quarter revenue. The bank believes the market's focus for 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 in the off-season. The bank believes the worst period may be over.