TRIP.COM(HK:09961)2024-05-23 11:02Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 519 (USD 67) [5][3][1] Core Insights - The company reported a 29% year-on-year revenue growth in Q1, slightly exceeding market expectations, with adjusted net profit reaching RMB 4.1 billion, surpassing market expectations by 45% [2][1] - The adjusted profit margin improved by 12 percentage points to 34% year-on-year, benefiting from strong revenue growth and operational efficiency [2][1] - Domestic hotel and flight bookings grew over 20% year-on-year, while outbound bookings more than doubled [2][1] - The international OTA business saw approximately 80% year-on-year revenue growth, contributing about 10% to total revenue [2][1] Financial Performance - Q1 revenue was RMB 11.9 billion, with a year-on-year increase of 29% and a quarter-on-quarter increase of 15% [2][3] - Adjusted net profit for 2024 is projected to be RMB 14.8 billion, up 13% from previous estimates, with a profit margin of 28.1% [3][2] - The company expects 2024 revenue to remain unchanged at RMB 52.7 billion, reflecting an 18% year-on-year growth [3][2] Market Trends - The company is focusing on refined user engagement strategies, including tailored packages for younger users and senior citizens [2][1] - Outbound travel is expected to recover faster than the industry average, with predictions indicating a recovery to 80% of 2019 levels by the end of 2024 [2][1] - The international business's revenue potential is anticipated to grow through cross-selling opportunities and the release of inbound travel potential [2][1]