Trip.com Group Ltd - Conference Call Summary Company Overview - **Company**: Trip.com Group Ltd (TCOM) - **Industry**: Online Travel Agency (OTA) - **Market Focus**: Asia Pacific, excluding China and India Key Points Industry and Market Position - Trip.com aims to become the number one player in Asia (excluding China and India) in terms of market share, which is considered a challenging yet achievable target [2] - The company is currently the market leader in Singapore, Hong Kong, and Thailand, and is rapidly gaining market share in Korea and Japan [2] - The APAC travel market is expected to grow, with online penetration increasing, providing a favorable environment for Trip.com [2] Financial Performance and Projections - Trip.com anticipates that by 2030, international and outbound business will contribute to 50% of its revenue [2] - Revenue growth projections indicate a slowdown from over 55% in 2025 to around 25% by 2030 [2] - The company expects year-over-year margin improvements for both domestic and overseas operations, although mixed revenue sources may introduce uncertainty [4] Strategic Initiatives - Trip.com has a structured approach to entering new markets, focusing first on product and localization, followed by performance-based marketing, and then brand marketing once a market share of 2-5% is achieved [3] - The company prioritizes branding and service quality over pricing, believing its pricing is competitive [2] - A significant marketing push has been noted, which has positively impacted overseas expansion efforts [1] Competitive Landscape - Concerns regarding competition from Alibaba's Fliggy are downplayed, with Trip.com’s strong supply chain control seen as a competitive advantage [5] - The company is positioned to achieve profitability levels similar to global peers, potentially exceeding them if the revenue mix favors accommodation [3] Financial Metrics - Current stock price (as of November 25, 2025): US$70.30 - Price target set at US$86.00, indicating a potential upside of 22% [7] - Projected revenue growth from Rmb 53,294 million in FY25 to Rmb 77,641 million in FY27, with a net profit forecast of Rmb 32,156 million in FY25 [31] Risk Factors - Risks include rising competition in the domestic market, uncertainties related to the pandemic, and macroeconomic slowdowns that could affect travel demand [50] - The company is also exposed to foreign exchange headwinds, which could impact profitability [51] Investment Thesis - Trip.com is viewed as uniquely positioned to benefit from multiple growth engines, including domestic travel, outbound travel, and international expansion [39] - The company has announced a US$5 billion share repurchase program, representing over 10% of its market cap at the time of announcement, which is seen as a positive signal for investors [39] Conclusion - Trip.com Group Ltd is strategically positioned for growth in the APAC travel market, with a focus on enhancing its market share and profitability through targeted marketing and operational efficiencies. The company’s financial outlook remains positive, despite potential risks from competition and macroeconomic factors.