Group 1 - The Hong Kong stock market opened lower on August 28, with mixed performance among tech stocks and notable movements in the innovative drug and gold sectors [1] - Meituan reported Q2 revenue of 91.84 billion yuan, a year-on-year increase of 11.7%, but adjusted net profit fell by 89%, leading to a drop of over 9% in its stock price post-earnings [1] - Trip.com Group reported Q2 net revenue of 14.843 billion yuan, a year-on-year increase of 16.22%, with net profit rising by 26.43%. The company highlighted strong growth in international business segments, with total international OTA platform bookings up over 60% year-on-year [1] Group 2 - As of August 27, the latest valuation of the Hang Seng Tech Index ETF (513180) was 22.3 times, which is below 74% of the time since its inception on July 27, 2020, indicating a relative undervaluation [2] - The Hang Seng Tech Index is currently in a historically undervalued range, with potential upward momentum due to expectations of Federal Reserve interest rate cuts and improved external liquidity [2] - Investors without a Hong Kong Stock Connect account can access Chinese AI core assets through the Hang Seng Tech Index ETF (513180) [2]

Summary of Trip.com Group Ltd Conference Call Company Overview - **Company**: Trip.com Group Ltd (TCOM) - **Industry**: China Internet and Other Services - **Market Cap**: US$45.843 billion - **Stock Rating**: Overweight - **Price Target**: US$78.00, representing a 19% upside from the closing price of US$65.29 on August 27, 2025 Key Financial Highlights - **2Q25 Net Revenue**: Increased by 16% YoY to Rmb14.8 billion, 2% above Morgan Stanley estimates [2][3] - **Non-GAAP Operating Profit**: Rose by 10% YoY to Rmb4.7 billion, exceeding estimates by 10% [2][3] - **Adjusted Net Profit**: Increased by 1% YoY, also 10% above estimates [3] - **Operating Margin**: 31.4%, surpassing guidance of 29.1% [2][3] - **Share Repurchase Program**: New program approved for US$5 billion, approximately 11.7% of market cap [3] Segment Performance - **Accommodation Reservations**: Up 21% YoY to Rmb6.225 billion, 12% QoQ growth [3] - **Transportation Ticketing**: Increased by 11% YoY to Rmb5.397 billion, flat QoQ [3] - **Packaged Tours**: Decreased by 8% YoY to Rmb947 million [3] - **Corporate Travel**: Slight decline of 1% YoY to Rmb692 million [3] - **Others**: Grew by 31% YoY to Rmb1.471 billion [3] Market Outlook - **3Q25 Outlook**: Market focus expected to shift due to weak travel data during the summer holiday [3] - **Risks to Upside**: Potential rebound in macroeconomic growth and recovery in outbound travel [9] - **Risks to Downside**: Increased competition from Tongcheng Travel and Meituan, pandemic uncertainties, and macroeconomic slowdown [9] Valuation and Financial Metrics - **WACC**: 10.5%, aligned with lower bound of China Internet WACCs [8] - **Terminal Growth Rate**: 3%, aligned with long-term GDP growth target [8] - **Projected Revenue Growth**: Expected to reach Rmb61.245 billion in FY25 [4] - **Projected EPS**: Expected to be Rmb24.50 in FY25 [4] Additional Insights - **Gross Margin**: 81.0%, with slight fluctuations noted [3] - **Operating Income**: Increased by 15% YoY to Rmb4.102 billion [3] - **Net Income to Shareholders**: Increased by 76% YoY to Rmb4.846 billion [3] - **Diluted EPS**: Rmb6.97 for 2Q25, reflecting a 45% increase YoY [3] This summary encapsulates the key points from the conference call, highlighting the financial performance, market outlook, and strategic initiatives of Trip.com Group Ltd.

Core Insights - Ctrip Group reported a net revenue of 14.843 billion RMB for Q2 2025, representing a year-on-year increase of 16.22% [1] - The net profit attributable to shareholders for the same quarter was 4.846 billion RMB, showing a year-on-year growth of 26.43% [1] Revenue Breakdown - Accommodation booking revenue for Q2 2025 reached 6.2 billion RMB, reflecting a year-on-year increase of 21% and a quarter-on-quarter growth of 12% [1] - Transportation ticketing revenue was 5.4 billion RMB, with a year-on-year increase of 11% and stable quarter-on-quarter performance [1] International and Inbound Tourism - Ctrip's international OTA platform bookings grew by over 60% year-on-year in Q2 2025 [1] - Inbound tourism bookings saw a remarkable increase of over 100% year-on-year, driven primarily by demand from South Korea and Southeast Asia [1]

携程集团-S(09961)高开逾5%，截至发稿，涨5.66%，报541.5港元，成交额1.33亿港元。 消息面上，携程集团发布2025年二季度业绩，该集团取得净收入人民币148.43亿元(单位下同)，同比增 加16.22%；归属携程集团有限公司净利润48.46亿元，同比增加26.43%。公司指出，第二季度国际各业 务板块继续呈现强劲增长态势，国际OTA平台总预订同比增长超过60%；入境旅游预订同比增长超过 100%；出境酒店和机票预订已全面超越2019年疫情前同期的120%水平。 ...

Market Performance - The satellite navigation concept stocks showed strong performance with several stocks hitting the daily limit up, including Broadcom Integrated, China Satellite, and Qiming Information [2][3] - The A-share market opened lower with the three major indices declining: Shanghai Composite Index down 0.1%, Shenzhen Component Index down 0.33%, and ChiNext Index down 0.58% [4][5] - The Hong Kong market also opened lower, with the Hang Seng Index down 0.68% and the Hang Seng Tech Index down 0.99%, while Meituan saw a significant drop of nearly 10% [6] Stock Performance - Notable gainers in the satellite navigation sector included: - Huali Chuangtong: +13.17% - Chuangyuan Xinke: +11.70% - Cisco Rui: +10.94% - China Satellite: +10.01% - Broadcom Integrated: +10.01% - Qiming Information: +10.00% [3] - Overall, in the A-share market, 1,810 stocks rose while 2,719 stocks fell [5] Monetary Policy - The central bank conducted a 7-day reverse repurchase operation amounting to 416.1 billion yuan with an operation rate of 1.40% [7] - The People's Bank of China adjusted the RMB to USD central parity rate up by 45 basis points to 7.1063 [8]

Core Viewpoint - Ctrip Group (9961.HK) shares rose over 6%, reaching a new high of 544 HKD since February 17, driven by strong mid-year financial results [1] Financial Performance - For the six months ending June, the company reported a net profit attributable to shareholders of 9.123 billion RMB, an increase of 12.01% year-on-year, with basic earnings per share of 13.82 RMB [1] - Total revenue amounted to 28.714 billion RMB, reflecting a year-on-year growth of 16.21% [1] - In the quarter ending June, the net profit attributable to shareholders was 4.846 billion RMB, up 26.43% year-on-year, with basic earnings per share of 7.34 RMB [1] - Revenue for the quarter totaled 14.864 billion RMB, a year-on-year increase of 16.23%, exceeding expectations [1] - Adjusted EBITDA for the period was 4.9 billion RMB, compared to 4.4 billion RMB in the same period last year, with an adjusted EBITDA margin of 33%, down 2 percentage points year-on-year [1] Share Buyback Plan - The board of Ctrip approved a new share buyback plan in August, authorizing the repurchase of up to 5 billion USD (approximately 39 billion HKD) of issued ordinary shares and/or American Depositary Shares (ADS) [1]

Core Insights - Ctrip Group-S (09961) opened over 5% higher and is currently up 5.66%, trading at HKD 541.5 with a transaction volume of HKD 133 million [1] Financial Performance - For Q2 2025, Ctrip Group reported a net revenue of RMB 14.843 billion, representing a year-on-year increase of 16.22% [1] - The net profit attributable to Ctrip Group Limited was RMB 4.846 billion, showing a year-on-year growth of 26.43% [1] Business Growth - The company highlighted strong growth across its international business segments, with total bookings on the international OTA platform increasing by over 60% year-on-year [1] - Inbound travel bookings surged by over 100% year-on-year [1] - Outbound hotel and flight bookings have fully surpassed 120% of the levels seen in the same period in 2019, prior to the pandemic [1]

Group 1 - The Hang Seng Index opened down 0.68%, while the Hang Seng Tech Index fell by 0.99%. Ctrip Group saw a nearly 6% increase as the company was authorized to repurchase shares worth up to $5 billion [1] - According to Zhongtai International, despite a significant recovery in Hong Kong stock valuations, with the predicted PE of the Hang Seng Index restored to nearly the 80th percentile of the past seven years, external monetary policy uncertainty has decreased, and internal policies such as "anti-involution" and industrial support are being intensified, providing upward support for the market [1] - Guotai Junan Securities noted that with a rate cut in September likely, and considering that Hong Kong stocks have significantly retraced their excess relative to A-shares this year, the A-H market will return to a unified starting line, with changes in corporate earnings driving performance differences between the two markets [1] Group 2 - Huatai Securities released a strategy report on Hong Kong stocks, indicating that foreign capital still has room to continue increasing allocation to the Chinese market due to: 1) Overseas liquidity is likely to remain loose, influenced by monetary policy and financial regulation, with a trend towards softer dollar liquidity; 2) Improvement in domestic fundamental expectations and potential appreciation of the RMB [1] - It is important to note that the significance of foreign capital in the Hong Kong stock market has decreased, with southbound capital accounting for over 40% of trading in interconnectivity stocks, making the sustainability of future inflows even more worthy of attention [1]

Group 1 - The core viewpoint of the article highlights Ctrip Group's strong financial performance in Q2 2025, with a net revenue of 14.8 billion yuan, representing a 16% year-on-year growth [1] - In terms of business segments, accommodation booking revenue reached 6.2 billion yuan, up 21% year-on-year; transportation ticketing revenue was 5.4 billion yuan, an 11% increase; vacation revenue was 1.1 billion yuan, growing by 5%; and business travel management revenue was 692 million yuan, up 9% [1] - Ctrip's international OTA platform saw a more than 60% year-on-year increase in flight bookings, with inbound travel bookings doubling compared to the previous year, and outbound hotel and flight bookings recovering to 120% of 2019 levels [1] Group 2 - Ctrip's Executive Chairman Liang Jianzhang emphasized the importance of tourism as a key driver for economic development and cultural exchange, expressing confidence in the long-term growth prospects of the industry [1] - The company announced a new share repurchase plan, authorized to buy back up to 5 billion USD of its issued common stock and/or American Depositary Receipts, subject to market conditions and applicable laws [1]

Core Insights - Ctrip Group reported a net revenue of 14.8 billion RMB (2.1 billion USD) for Q2 2025, representing a year-on-year increase of 16% and a quarter-on-quarter increase of 7% [1] Revenue Breakdown - Accommodation booking revenue reached 6.2 billion RMB (869 million USD), up 21% year-on-year, driven by growth in accommodation bookings [1] - Transportation ticketing revenue was 5.4 billion RMB (753 million USD), an 11% year-on-year increase, primarily due to the rise in transportation ticket bookings [1] - Vacation business revenue amounted to 1.1 billion RMB (151 million USD), reflecting a 5% year-on-year increase, supported by growth in vacation bookings [1] - Business travel management revenue was 692 million RMB (97 million USD), up 9% year-on-year and 21% quarter-on-quarter, attributed to the increase in business travel orders [1] Profitability - Net profit attributable to Ctrip Group shareholders was 4.8 billion RMB (676 million USD), compared to 3.8 billion RMB in the same period of 2024 and 4.3 billion RMB in the previous quarter [1] Cash Position - As of June 30, 2025, the company had cash and cash equivalents, restricted cash, short-term investments, and held-to-maturity deposits totaling 94.1 billion RMB (13.1 billion USD) [2]