Investment Rating - The report maintains a "Buy" rating for the company [3] Core Insights - The company slightly exceeded profit expectations in Q1 2025, with revenue reaching 138.30 billion, a year-on-year increase of 16.2%, and operating profit (Non-GAAP) at 40.43 billion, up 7.4% year-on-year [6] - The company is expected to achieve revenue of 624.84 billion, 705.27 billion, and 793.32 billion for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 17.24%, 12.87%, and 12.48% [2] - The company is expanding its overseas investments, which has led to a slight decline in profit margins, with a gross margin of 80.4% in Q1 2025, down 0.8 percentage points year-on-year [6] - The international OTA platform bookings grew over 60% year-on-year, and inbound tourism increased by over 100% [6] - The company is accelerating its AI strategy, which is expected to enhance customer service efficiency significantly [6] Financial Summary - The projected net profit for the company is 169.59 billion, 199.39 billion, and 226.82 billion for 2025, 2026, and 2027 respectively, with a year-on-year change of -0.63%, +17.57%, and +13.75% [2] - The earnings per share (EPS) are forecasted to be 23.77, 27.94, and 31.79 for 2025, 2026, and 2027 respectively [2] - The company’s total assets are expected to reach 275.05 billion, 297.69 billion, and 329.00 billion for 2025, 2026, and 2027 respectively [7]

Core Viewpoint - Trip.com Group Limited is notifying holders of its 1.50% Exchangeable Senior Notes due 2027 about their right to require the company to repurchase these notes for cash on July 1, 2025, under specific terms outlined in the Indentures [1][2][3] Group 1: Repurchase Right Details - Holders can require the company to repurchase all or a portion of their Exchangeable Notes, with a minimum amount of US$200,000 or integral multiples of US$1,000 [2][3] - The repurchase price will be 100% of the principal amount plus any accrued and unpaid interest up to July 1, 2025 [2] - The total outstanding amount of Exchangeable Notes as of May 27, 2025, is US$500,000,000, which means the total cash purchase price could reach US$500,000,000 if all notes are surrendered [2] Group 2: Timeline and Procedures - The opportunity to exercise the 2025 Repurchase Right starts on May 28, 2025, at 9:00 a.m. and ends on June 27, 2025, at 5:00 p.m. [3] - Holders must follow specific transmittal procedures outlined in the 2025 Repurchase Right Notice to exercise their rights [3] - Holders can withdraw previously tendered Exchangeable Notes until June 27, 2025 [3] Group 3: Company Overview - Trip.com Group Limited is a leading global one-stop travel platform, offering a comprehensive suite of travel products and services [7] - The company operates under various brands, including Ctrip, Qunar, Trip.com, and Skyscanner, and aims to provide cost-effective travel solutions [7] - Founded in 1999 and listed on Nasdaq in 2003 and HKEX in 2021, the company continues to expand its reach among travelers worldwide [7]

Investment Rating - The report maintains a "Buy" rating for the company [3] Core Views - The company's Q1 2025 profit slightly exceeded expectations, with revenue reaching 138.30 billion, a year-on-year increase of 16.2%, and operating profit (Non-GAAP) at 40.43 billion, up 7.4% year-on-year [6] - The company is expected to achieve revenue of 624.84 billion, 705.27 billion, and 793.32 billion for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 17.24%, 12.87%, and 12.48% [2] - The company is expanding its overseas investments, contributing to revenue growth, with international OTA platform bookings increasing over 60% year-on-year [6] - The company is accelerating its AI strategy, which is expected to enhance customer service efficiency significantly [6] Financial Summary - The forecasted revenue and net profit for the company from 2025 to 2027 are as follows: - Revenue: 624.84 billion (2025), 705.27 billion (2026), 793.32 billion (2027) - Net Profit: 169.59 billion (2025), 199.39 billion (2026), 226.82 billion (2027) [2][7] - The company's earnings per share (EPS) is projected to be 23.77 yuan in 2025, 27.94 yuan in 2026, and 31.79 yuan in 2027 [2][7] - The price-to-earnings (P/E) ratio is expected to be 19X in 2025, 16X in 2026, and 14X in 2027 [2]

Group 1: Internet Platform Companies - Tencent has a gross margin of 53% and a net margin of 33.7%, dominating the social media space [1] - Trip.com has a gross margin of 81.76% and a net margin of 32.02%, holding a market share of 65-70% in high-star hotels [1] - Pinduoduo reports a gross margin of 60.9% and a net margin of 28.6%, affected by losses from TEMU [1] - NetEase Games shows a gross margin of 57.14% and a net margin of 28.2% [1] Group 2: Fast-Moving Consumer Goods (FMCG) Brands - Leading FMCG brands like Nongfu Spring and Coca-Cola have net margins around 20%, with Coca-Cola at 22.6% due to its innovative business model [2] - Second-tier brands like PepsiCo and Nestlé have net margins around 10%, often due to insufficient brand loyalty or high pricing with low scale [3] - Third-tier brands such as Master Kong and Uni-President operate with net margins around 5%, relying on low prices for market share but struggling with brand loyalty and production scale [4] Group 3: Chain Beverage Companies - Top-tier chain beverage companies like Bawang Tea have a net margin of 20.3%, benefiting from brand premium [5] - Starbucks typically has a net margin of around 15%, but faces margin pressure due to increased competition [6] - Second-tier brands like Mixue Ice City and Gu Ming have net margins of 17.94% and 16.99%, respectively, leveraging scale advantages [6] Group 4: Hardware Companies - Apple has a gross margin of 46.2% and a net margin of 24%, while Xiaomi has a gross margin of 20.4% and a net margin of 6.44% [8] - NVIDIA shows a gross margin of 78.9% and a net margin of 57%, compared to AMD's gross margin of 50.2% and net margin of 15.3% [8] Group 5: Business Insights - High net margins (above 30%) often indicate monopolistic products, while margins below 15% suggest competitive pressures [9] - Companies with single-digit net margins typically rely on price wars, indicating weak product differentiation and low competitive advantage [14] - Trends in gross and net margins can reveal significant insights about a company's market position, as seen with Tesla and BYD [15]

【深圳商报讯】（记者吴蕾苑伟斌）5月24日至25日，第二十一届文博会文化产业招商会暨合作签约仪 式在深圳国际会展中心红树林厅举办。记者获悉，这场为期两天的盛会不仅实现了签约金额的历史性突 破，更以"2+5+N"创新模式构建起文化产业全要素交易生态，实现了数量的倍增扩容、质量和结构的能 级跃升。 文博会文化产业招商会共有河北省、云南省、新疆维吾尔自治区、西藏自治区、深圳市、南京市、大连 市、宁都县、安远县、东源县，以及东方航天港集团文化旅游有限公司、湖北广播电视台、小鸟看看、 大丰数艺科技、河南洛邑文化旅游、深圳广电集团、深圳出版集团、深圳文化产权交易所、云洲数字、 加推科技、我的宇宙、雅文传播等共计24家政府组团、企业现场推介，推介项目数达35个；现场签约项 目达41个，总成交额再创新高。 文博会做优做强"交易"这一关键"硬实力"，积极打造文化产业投融资超级服务平台。作为文博会的重要 配套活动，文博会文化产业招商会已连续成功举办4届。本次招商会大会采用"2+5+N"模式，即2场主旨 招商会暨合作签约仪式、5大核心板块（人工智能、低空经济、文化旅游、文化出海、乡村振兴）、N 场专场推介会，设置了文化产业招商项目 ...

Group 1 - The core viewpoint of the article highlights Ctrip's strategic initiatives aimed at enhancing innovation and service standards in the tourism industry [1] Group 2 - Ctrip announced the establishment of a 1 billion yuan tourism innovation fund to support breakthrough and innovative developments in the tourism sector [1] - The company has formed strategic partnerships with several international hotel groups from Thailand, Malaysia, and Indonesia to improve regional hotel service standards through joint marketing and service upgrades [1] - Ctrip is collaborating with 10 domestic destinations and 5 overseas travel agencies to create a "two-way service hub" in response to the national strategy to promote inbound tourism [1]

Group 1: Company Overview - The report focuses on Zhongke Shuguang (603019), a leading enterprise in China's core information infrastructure, primarily engaged in high-end computing, storage, security, and data center products [3][4] - The company is a top incubation platform of the Chinese Academy of Sciences, with investments in several high-quality assets covering the entire computing industry chain from chips to cloud services [4][5] - The company's net profit has shown stable long-term growth, with a revenue of 13.148 billion yuan in 2024, a year-on-year decrease of 8.4%, while net profit reached 1.911 billion yuan, a year-on-year increase of 4.1% [4] Group 2: Business Strategy and Growth - Zhongke Shuguang has focused on artificial intelligence infrastructure, achieving significant technological breakthroughs in smart computing services, forming a complete product capability system [5][6] - The company has a comprehensive layout in the autonomous controllable computing industry chain, with subsidiaries like Shuguang Data Creation and Haiguang Information leading in their respective fields [5][6] - The report projects that the company will achieve revenues of 15.663 billion, 19.837 billion, and 25.417 billion yuan from 2025 to 2027, with net profits of 2.846 billion, 3.803 billion, and 5.251 billion yuan respectively [9] Group 3: Industry Insights - The semiconductor industry is facing uncertainties due to tariff disturbances, with visibility for the second half of 2025 being low [10] - The storage market is showing positive trends in Q2 2025, with significant price increases for DDR4 memory [13] - The AI hardware demand is expected to remain strong, with recommendations to focus on leading companies in the AI hardware sector [14] Group 4: Digital Media and Gaming - Bilibili (09626) reported a 24% year-on-year increase in revenue for Q1 2025, driven by strong user engagement and growth in mobile gaming [15][16] - The company’s mobile game revenue increased by 76% year-on-year, highlighting the success of its exclusive game titles [17] - The advertising revenue also grew by 20% year-on-year, reflecting the platform's increasing influence and user engagement [19] Group 5: Travel and Tourism - Trip.com Group (09961) reported a 16% year-on-year increase in net operating revenue for Q1 2025, driven by strong domestic travel demand and recovery in international business [27][28] - The company is seeing significant growth in outbound travel bookings, exceeding pre-pandemic levels by over 20% [29] - The report forecasts net operating revenues of 61.6 billion, 69.4 billion, and 79.4 billion yuan from 2025 to 2027, with net profits of 16.5 billion, 20.2 billion, and 22.5 billion yuan respectively [30]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a net operating revenue of 13.8 billion yuan in Q1 2025, representing a year-on-year growth of 16%, in line with Bloomberg consensus expectations. The adjusted EBITDA was 4.2 billion yuan, with an EBITDA margin of 30%. The Non-GAAP net profit was 4.2 billion yuan, showing a year-on-year increase of 3%, which is better than Bloomberg consensus expectations [7] - The international business continues to grow significantly, with outbound travel maintaining stable growth. The cross-border flight capacity has recovered to 83% of pre-pandemic levels, and hotel and flight bookings for outbound travel have exceeded 120% of the same period in 2019, outperforming the market by 30%-40% [7] - Domestic tourism demand remains strong, with inbound tourism also experiencing robust growth. In Q1, the number of inbound travelers increased by 40% year-on-year, with 75% coming from visa-free regions. The company's platform saw a nearly 100% year-on-year increase in inbound bookings, with hotel bookings in major visa-free countries in the Asia-Pacific region surging over 240% [7] - The company continues to focus on enhancing its international business through better product experiences and customer service, with a sales expense ratio of approximately 21% in Q1, which is better than expected [7] - The profit forecast for 2025-2027 has been adjusted, with the adjusted net profit for 2025, 2026, and 2027 projected at 17.6 billion, 19.7 billion, and 22 billion yuan respectively, corresponding to P/E ratios of 18, 16, and 15 times [7] Financial Summary - Total revenue for 2023 is projected at 44.51 billion yuan, with a year-on-year growth of 122.12%. For 2024, revenue is expected to reach 53.29 billion yuan, reflecting a growth of 19.73% [1] - The company's net profit attributable to shareholders for 2023 is estimated at 9.92 billion yuan, with a staggering year-on-year growth of 606.91%. The forecast for 2024 is 17.07 billion yuan, indicating a growth of 72.08% [1] - The latest diluted EPS for 2023 is projected at 13.90 yuan per share, with a P/E ratio of 32.27 times [1]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a net operating revenue of 13.8 billion yuan in Q1 2025, representing a year-on-year growth of 16%, in line with Bloomberg consensus expectations. The adjusted EBITDA was 4.2 billion yuan, with an EBITDA margin of 30%. The Non-GAAP net profit was 4.2 billion yuan, showing a year-on-year increase of 3%, which is better than Bloomberg consensus expectations [7] - The international business continues to grow significantly, with outbound travel maintaining stable growth. The cross-border flight capacity has recovered to 83% of pre-pandemic levels, and hotel and flight bookings for outbound travel have exceeded 120% of the same period in 2019, outperforming the market by 30%-40% [7] - Domestic tourism demand remains strong, with inbound tourism also experiencing robust growth. In Q1, the number of inbound travelers increased by 40% year-on-year, with 75% coming from visa-free regions. The company's platform saw a nearly 100% year-on-year increase in inbound bookings, with hotel bookings in major visa-free countries in the Asia-Pacific region surging over 240% [7] - The company continues to focus on enhancing its international business through better product experiences and customer service, with a sales expense ratio of approximately 21% in Q1, which is better than expected [7] - The profit forecast for 2025-2027 has been adjusted, with the adjusted net profit for 2025, 2026, and 2027 projected at 17.6 billion, 19.7 billion, and 22 billion yuan respectively, corresponding to P/E ratios of 18, 16, and 15 times [7] Financial Summary - Total revenue for 2023 is projected at 44.51 billion yuan, with a year-on-year growth of 122.12%. For 2024, revenue is expected to reach 53.29 billion yuan, reflecting a growth of 19.73% [1] - The company's net profit attributable to shareholders for 2023 is estimated at 9.92 billion yuan, with a staggering year-on-year growth of 606.91%. The forecast for 2024 is 17.07 billion yuan, indicating a growth of 72.08% [1] - The latest diluted EPS for 2023 is projected at 13.90 yuan, with a P/E ratio of 32.27 times [1]

Core Viewpoint - Trip.com Group reported strong financial performance in Q1 2025, with revenue growth and positive operating profit margins, indicating a robust recovery in the travel sector [1][4]. Financial Performance - Q1 2025 revenue reached Rmb13.9 billion, representing a 16% year-over-year increase [1]. - Non-GAAP operating profit was Rmb4 billion, with a non-GAAP operating profit margin of 29% [1]. - The company maintains its non-GAAP EPS forecasts of Rmb27.7 for 2025, Rmb29.7 for 2026, and Rmb30 for 2027 [1]. Business Segment Performance - Accommodation reservation revenue increased by 23% year-over-year [2]. - Transportation ticketing revenue grew by 8%, packaged tour revenue by 7%, corporate travel revenue by 12%, and other business revenue by 33% [2]. - Revenue breakdown by region: domestic (65% of total revenue, low teens growth), outbound (15%, 20% growth), and pure overseas (20%, 30%+ growth) [2]. Brand Contribution and Outlook - The Trip.com brand contributed 13% of total revenue, with over 50% year-over-year growth [3]. - For Q2 2025, revenue is expected to grow by 14% year-over-year, with domestic business in low teens, outbound travel up by 15%, and Trip.com brand growth exceeding 50% [3]. - The recovery rate of outbound travel compared to 2019 is projected to rise from 50% in Q1 2025 to 60% [3]. Market Position and Rating - The company is positioned as a leader in China's online travel industry, with potential for market share gains internationally [4]. - The target price is maintained at HK$590, indicating a 22% upside, with a Buy rating sustained [4].