TRIP.COM(09961) 国证国际证券·2025-02-26 09:08Investment Rating - The report maintains a "Buy" rating for the company, with an updated target price of HKD 591 (previously HKD 571) and USD 76 (previously USD 73) [1][5]. Core Insights - The company reported a 4Q24 net revenue of RMB 12.7 billion, a year-on-year increase of 23%, exceeding market expectations by 5% [2]. - The international business is still in an investment phase, but the long-term growth potential is viewed positively, particularly in overseas markets [1][5]. - The company’s gross merchandise volume (GMV) for its core OTA business reached RMB 1.2 trillion (USD 169 billion), reflecting a 9% increase from the previous year, maintaining its position as the largest OTA globally [3]. Financial Performance - 4Q24 adjusted net profit was RMB 3 billion, a 14% year-on-year increase, surpassing market expectations by 6% [2]. - The company’s gross profit margin decreased by 1 percentage point to 79% year-on-year, while marketing expenses rose by 45% due to increased overseas investments [2][5]. - Revenue projections for 2025 have been slightly adjusted, with expected revenue of RMB 61.7 billion, reflecting a 16% year-on-year growth [6][24]. Business Growth Potential - Domestic tourism is expected to grow by 10% in 2025, with the company leveraging its advantages in hotel ADR and air ticket pricing to outperform the industry [4]. - The international business, particularly in the Asia-Pacific region, is projected to contribute significantly to total revenue, with a potential market size 1.5 times that of the domestic market [4]. - The company is focusing on enhancing its one-stop service and mobile platform to capture a larger share of the international market [4]. Shareholder Returns - The company announced a USD 400 million share buyback plan and a dividend of USD 200 million (USD 0.3 per share), indicating a commitment to delivering stable performance and shareholder returns [5].