EBSCN·2026-02-28 13:06Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company reported a net revenue of 62.409 billion yuan for 2025, representing a year-on-year increase of 17%, and an adjusted net profit of 31.839 billion yuan, up 77% year-on-year. In Q4 2025, net revenue reached 15.398 billion yuan, a 21% increase year-on-year, with an adjusted net profit of 3.484 billion yuan, up 15% year-on-year [4][5] Revenue Performance - In Q4 2025, the accommodation booking business generated revenue of 6.287 billion yuan, a 21% year-on-year increase, driven by outbound travel and international hotel bookings. For the full year 2025, accommodation booking revenue was 26.1 billion yuan, also up 21% year-on-year [5] - The transportation ticketing business achieved revenue of 5.368 billion yuan in Q4 2025, a 12% year-on-year increase, primarily due to strong performance in international flight bookings. The full-year revenue for this segment was 22.489 billion yuan, up 11% year-on-year [5] - The vacation business reported revenue of 1.056 billion yuan in Q4 2025, a 21% year-on-year increase, supported by outbound vacation demand. The full-year revenue for this segment was 4.688 billion yuan, up 8% year-on-year [5] - The business travel segment generated revenue of 808 million yuan in Q4 2025, a 15% year-on-year increase, benefiting from the increase in Chinese companies operating overseas. The full-year revenue for business travel was 2.829 billion yuan, up 13% year-on-year [5] - Other businesses saw revenue of 1.91 billion yuan in Q4 2025, a significant 54% year-on-year increase, attributed to the company's growing influence in overseas markets and close cooperation with international suppliers. The full-year revenue for other businesses was 6.404 billion yuan, up 38% year-on-year [6] Regional Performance - The changing demographic structure and the rise of the experience economy have created new growth opportunities for the company's domestic business. In Q4 2025, the number of members in the company's loyalty program and total GMV both saw over 100% year-on-year growth. The "entertainment + tourism" business revenue experienced triple-digit growth year-on-year [6] - For 2025, Trip.com is expected to maintain high growth, with booking volume increasing by approximately 60%. The company has expanded its market share in the Asia-Pacific region and achieved breakthroughs in the Middle East, leading to rapid growth in booking volume. The growth drivers for Trip.com stem from years of deep cultivation in overseas markets and the high growth dividend from inbound tourism in China, with the company serving over 20 million inbound tourists in 2025, nearly doubling year-on-year [6] Profitability and Valuation - In Q4 2025, the company's gross margin was 79.0%, down 0.3 percentage points year-on-year, and the operating profit margin (OPM) was 16.5%, down 1.6 percentage points year-on-year. This decline was mainly due to increased investment in overseas markets, with the sales expense ratio reaching 28.6%, up 2.1 percentage points year-on-year. The lower-margin overseas business's increasing share of total revenue also negatively impacted overall profitability [7] - The report projects adjusted net profits for 2026 and 2027 to be 19.011 billion yuan and 22.030 billion yuan, respectively, reflecting downward adjustments of 5.4% and 3.3% from previous forecasts. An adjusted net profit forecast for 2028 is introduced at 24.248 billion yuan. The current stock price corresponds to adjusted P/E ratios of 12, 11, and 10 times for 2026 to 2028 [8][9]