Ge Long Hui·2025-11-26 04:02Core Viewpoint - Trip.com Group reported strong financial performance in Q3 2025, with revenue growth driven by various business segments and a reduction in sales and marketing expenses, leading to an increase in profit forecasts and target price [1][2]. Financial Performance - Q3 2025 revenue reached Rmb 18.4 billion, representing a 16% year-over-year increase [1]. - Non-GAAP operating profit for the same period was Rmb 6.1 billion, exceeding expectations due to lower-than-expected sales and marketing expense ratios [1]. - The company raised its 2025 non-GAAP EPS forecast from Rmb 27.8 to Rmb 45.4, primarily due to investment gains from MakeMyTrip [1]. Business Segment Performance - Accommodation reservation revenue increased by 18% year-over-year [2]. - Transportation ticketing revenue grew by 12% [2]. - Packaged-tour revenue saw a 3% increase [2]. - Corporate travel revenue rose by 15% [2]. - Other business revenue surged by 34% [2]. - Overall reservations on the Trip.com brand increased by over 60% year-over-year, with inbound travel bookings more than doubling and outbound hotel and air ticket bookings up 140% compared to 2019 levels [2]. Market Outlook - The company maintains a Buy rating, reflecting optimism about its leading position in China's online travel industry and potential for market share growth internationally [3]. - The target price has been raised from HK$ 618 to HK$ 657, indicating a 21% upside [1].