Summary of Trip.com Group Ltd (TCOM) Conference Call Company Overview - **Company**: Trip.com Group Ltd (TCOM) - **Industry**: China Internet and Other Services - **Market Cap**: US$49,277 million - **Stock Rating**: Overweight - **Price Target**: US$83.00, representing a 16% upside from the current price of US$71.55 as of October 8, 2025 - **52-Week Range**: US$51.35 - US$78.65 Key Financial Metrics - **Fiscal Year Ending**: December - **Projected EPS (Rmb)**: - 2024: 26.20 - 2025: 26.62 - 2026: 29.45 - 2027: 33.50 - **Revenue (Rmb million)**: - 2024: 53,294 - 2025: 61,347 - 2026: 68,881 - 2027: 76,381 - **EBITDA (Rmb million)**: - 2024: 14,850 - 2025: 3,695 - 2026: 21,980 - 2027: 25,041 - **P/E Ratios**: - 2024: 20.4 - 2025: 21.5 - 2026: 17.7 - 2027: 15.5 - **ROE (%)**: - 2024: 13.8 - 2025: 11.7 - 2026: 11.7 - 2027: 12.1 Industry Insights - **Golden Week Travel Data**: - Total travel receipts increased by 15% YoY to Rmb809 billion, with person times up 16% YoY to 888 million, attributed to an extra day of travel - Daily average domestic cross-border travel and air passenger growth aligned with expectations, indicating positive trends for TCOM and competitors like Tongcheng Travel - **Travel Market Growth**: - The overall holiday data (+15%) is deemed more significant than daily average spending growth, which is expected to be around 7% annually Risks and Opportunities - **Upside Risks**: - Rebound in macroeconomic growth and recovery in outbound travel - **Downside Risks**: - Increased competition from domestic players such as Tongcheng Travel and Meituan - Potential pandemic uncertainties and macroeconomic slowdowns affecting travel demand Valuation Methodology - **Valuation Method**: Discounted Cash Flow (DCF) - **Key Assumptions**: - WACC of 10.5% - Terminal growth rate of 3% - FX rate of 7.15 Additional Notes - **Average Daily Trading Value**: US$223 million - **Analyst Coverage**: Analysts express a positive outlook on TCOM, with a focus on the recovery of the travel sector post-pandemic and the company's competitive positioning in the market This summary encapsulates the essential insights and financial metrics regarding Trip.com Group Ltd, highlighting its performance, market position, and future outlook within the travel industry.