Zhi Tong Cai Jing·2026-01-15 03:56Core Viewpoint - Daiwa has issued a "Buy" rating for Trip.com Group Ltd (09961) despite an ongoing investigation by China's State Administration for Market Regulation (SAMR) regarding alleged monopolistic practices [1] Group 1: Investigation Details - The SAMR's investigation focuses on exclusive agreements, traffic distribution mechanisms, and commission-related disputes [1] - Following the announcement, Trip.com experienced a significant drop in stock price, opening down 14.98% and reaching a low of 484.2 HKD, with early trading showing a decline of over 20% [1] Group 2: Market Competition - The domestic travel market in China is highly competitive, with multiple players in the hotel and transportation sectors [1] - Although Trip.com is the largest online travel platform by total transaction volume in China, competition from Meituan (03690) and Alibaba's Fliggy (09988) continues to impact market share dynamics and pricing strategies [1] Group 3: Long-term Outlook - Daiwa expresses a constructive long-term view on Trip.com due to factors such as international expansion, recovery trends in inbound tourism, and the domestic hotel inventory cycle [1] - Short-term regulatory uncertainties may negatively affect investor sentiment, but such phases often present entry opportunities once regulatory measures become clearer [1]