Investment Rating - The report assigns a "Buy" rating to Trip.com Group with a target price of HKD 597.7, representing a 7.60% upside from the current price of HKD 555.5 [4][13] Core Views - Trip.com Group's 3Q24 performance exceeded expectations, driven by strong growth in domestic and outbound travel demand [2] - The company's international OTA platform Trip.com saw hotel and flight bookings grow over 60% YoY, with outbound travel recovering to 120% of 2019 levels [2] - Trip.com Group is well-positioned to benefit from the recovery of outbound travel, supported by increasing flight capacity and visa facilitation [10] - The company's domestic travel business is expected to grow further due to the resilience of travel demand and increasing online penetration [3] - Trip.com's international business is in a rapid growth phase, with significant potential for expansion and synergies between domestic and international operations [13] Business Performance - In 3Q24, Trip.com Group achieved total revenue of RMB 15.9 billion, up 15.5% YoY, with adjusted EBITDA of RMB 5.7 billion, up 23.9% YoY, and Non-GAAP net profit of RMB 6.0 billion, up 21.8% YoY [2] - Segment revenue breakdown: Accommodation booking revenue grew 21.7% YoY to RMB 6.8 billion, transportation ticketing revenue increased 5.3% YoY to RMB 5.7 billion, package tour revenue rose 17.3% YoY to RMB 1.6 billion, and corporate travel management revenue grew 11.0% YoY to RMB 0.7 billion [2] - Trip.com's international OTA platform contributed approximately 9% of total revenue, with Asia-Pacific market revenue growing over 70% YoY [11] Industry Trends - Domestic travel in China has shown strong recovery, with 2023 domestic trips reaching 4.9 billion, recovering to 81.4% of 2019 levels, and total spending recovering to 85.7% of 2019 levels [3] - Online travel booking users in China reached 500 million by December 2023, accounting for 46.6% of total internet users, indicating significant growth potential for online travel platforms [3] - Outbound travel is expected to reach 130 million trips in 2024, recovering to 84% of 2019 levels, driven by increasing flight capacity and visa facilitation [10] Financial Projections - Revenue is projected to grow to RMB 55.3 billion in FY24E and RMB 62.9 billion in FY25E, with Non-GAAP net profit expected to reach RMB 17.1 billion in FY24E and RMB 18.9 billion in FY25E [7][13] - EPS is forecasted to be RMB 25.02 in FY24E and RMB 27.79 in FY25E, with P/E ratios of 20.6x and 18.6x respectively [7][13] - The company's ROE is expected to improve to 11.31% in FY24E and 11.23% in FY25E, reflecting strong profitability and efficient capital utilization [16]

Investment Rating - The report assigns a rating of "Accumulate" to the company with a target price of 4.43 HKD, representing a potential upside of 12.7% from the current price of 3.79 HKD [5][11]. Core Insights - The company has shown strong growth in non-interest income, with a year-on-year increase of 21.32%, while net interest income decreased by 4.81% due to a slight reduction in net interest margin [3][11]. - The total assets of the company reached 340,690 billion RMB, reflecting a 5.05% increase from the previous year, indicating steady growth in the asset-liability scale [4]. - The company maintains a solid provision coverage ratio of 198.86%, which has improved by 7.20 percentage points compared to the previous year, demonstrating effective management of non-performing loans [4][11]. Financial Performance Summary - For the first three quarters of 2024, the company reported operating income of 479.1 billion RMB, a year-on-year increase of 1.74%, and a net profit attributable to shareholders of 175.8 billion RMB, up by 0.52% [2]. - The net interest income for the same period was 336 billion RMB, down 4.81%, while non-interest income was 143.1 billion RMB, up 21.32% [3]. - The company’s basic earnings per share (EPS) for the first three quarters of 2024 was 0.55 RMB [2]. Asset and Liability Management - As of September 2024, total liabilities amounted to 311,950 billion RMB, an increase of 5.12% from the end of the previous year, with customer deposits totaling 237,106 billion RMB, up 3.51% [4]. - The loan balance reached 214,359 billion RMB, reflecting a growth of 7.38% year-on-year, with corporate loans accounting for 145,965 billion RMB and personal loans for 67,833 billion RMB [4]. Valuation Metrics - The report forecasts the company's EPS for 2024, 2025, and 2026 to be 0.75, 0.77, and 0.80 RMB respectively, with corresponding price-to-book (P/B) ratios of 0.44, 0.41, and 0.38 [11][26]. - The company has a dividend yield of 6.84%, indicating a strong dividend-paying capability [11].

Investment Rating - The report assigns a rating of "Accumulate" to the company with a target price of HKD 58.81, representing a potential upside of 7.9% from the current price of HKD 54.5 [3][11]. Core Insights - The company has demonstrated solid growth in its core business, with a significant reduction in debt levels, indicating improved financial health [2][11]. - The company operates in 260 cities, serving a population of 140 million, and is one of the largest clean energy distributors in China [1]. - The company’s revenue for the first half of 2024 was RMB 54.59 billion, a year-on-year increase of 0.9%, while net profit attributable to shareholders decreased by 22.8% to RMB 2.57 billion [2]. Financial Performance - The gross profit for the first half of 2024 was RMB 6.47 billion, a decrease of 9.7% year-on-year, primarily due to reduced opportunities in the international market and a decline in gas wholesale business [2]. - The company reported a core profit of RMB 3.26 billion, down 16.6% year-on-year, with domestic core business showing a growth of 9.5% to RMB 3.08 billion [2]. - The company’s operating cash inflow was RMB 3.27 billion, with free cash flow reaching RMB 630 million, indicating a stable cash position [2]. Business Segments - The gross profit margin from the company's natural gas sales, energy services, and smart home businesses accounted for 87.3% of total gross profit, reflecting an improvement of 8.6 percentage points year-on-year [2]. - The company has a robust customer base and continues to expand its operational reach, indicating significant growth potential [2]. Debt and Capital Expenditure - The company has effectively optimized its debt structure, reducing interest-bearing liabilities to RMB 19.83 billion from RMB 21.92 billion in 2023, with a comprehensive financing cost of 3.4% [2]. - Capital expenditures were RMB 2.74 billion, a significant decrease of 20% year-on-year, reflecting a prudent investment strategy to maintain stable cash flow [2]. Future Outlook - The company projects a 5% growth in natural gas retail volume and a 10%+ increase in gross profit from the natural gas retail business for the year [11]. - The report anticipates that the company will benefit from the seasonal increase in natural gas demand during winter, which may offset the decline in summer sales [11].

Investment Rating - The report maintains a rating of "Accumulate" for the company with a target price of RMB 37.85, representing a potential upside of 14.35% from the current price of RMB 33.1 [4][9]. Core Insights - The company's revenue has recovered to 112% of the pre-pandemic levels, while net profit has only reached 30% of the pre-pandemic levels, indicating a significant gap in profitability recovery [1]. - The international flight market has rebounded significantly, with passenger throughput increasing by 150% year-on-year, contributing to the overall recovery of the company's operational metrics [2]. - Non-aeronautical revenue has been adversely affected by a substantial decrease in duty-free income, which fell by 49.62% year-on-year in Q3 2024 due to revised agreements impacting sales commission rates [3]. Summary by Sections Financial Performance - In the first three quarters of 2024, the company achieved operating revenue of RMB 9.19 billion, a year-on-year increase of 16%, and a net profit of RMB 1.2 billion, up 142% year-on-year [1]. - For Q3 2024, the company reported operating revenue of RMB 3.127 billion and net profit of RMB 387 million, reflecting a year-on-year increase of 2.5% and 6.2% respectively [3]. - The gross profit margin for Q3 2024 was 22.44%, a slight increase of 0.7 percentage points year-on-year, although still significantly lower than the 51.68% margin in 2019 [8]. Market Recovery - The recovery in the aviation market is evident, with Pudong Airport's flight takeoffs and landings, passenger throughput, and cargo/mail throughput recovering to 103%, 99.6%, and 105% of the 2019 levels respectively [2]. - Domestic routes have shown even stronger recovery, with metrics reaching 117.7%, 119.8%, and 101.7% of the 2019 levels [2]. Future Outlook - The company anticipates continued growth in international passenger traffic, which is expected to drive both aeronautical and non-aeronautical revenue growth [9]. - Projections for net profit from 2024 to 2026 are RMB 1.78 billion, RMB 2.44 billion, and RMB 2.91 billion respectively, with corresponding EPS estimates of RMB 0.72, RMB 0.98, and RMB 1.17 [9].