Investment Rating - The report assigns an "Outperform" rating to the company, indicating expected relative performance above the market benchmark over the next 12-18 months [3][12]. Core Insights - Domestic growth is stable while overseas growth continues to be high, with the company expanding its user share and influence. Adjusted net profit attributable to shareholders is projected to be RMB 31.86 billion, RMB 20.76 billion, and RMB 23.16 billion for the years 2025, 2026, and 2027 respectively [3][12]. - A valuation of 23x PE for 2026 is set, leading to a target market capitalization of RMB 476.4 billion, equivalent to HKD 523.3 billion, with a target price of HKD 733 [3][12]. Financial Summary - For Q3 2025, the company reported revenue of RMB 18.37 billion, a year-on-year increase of 15.52%. Adjusted EBITDA was RMB 6.35 billion, up 11.73%, and adjusted operating profit was RMB 6.13 billion, reflecting a 12.2% increase. Net profit attributable to shareholders surged to RMB 19.89 billion, a 194.01% increase, largely due to partial investment profit sales [3][13]. - The company’s revenue growth in transportation accelerated due to peak season and overseas demand, while hotel growth remained in double digits but showed signs of sequential slowdown. Group tours have seen a decline in growth since Q1 2025, attributed to a shift towards independent travel and regional risks [3][13]. Performance Metrics - The adjusted EBITDA margin is projected to be 30.5% in 2025, with a slight decline expected in subsequent years. The company has maintained stable profit margins despite increased competition in overseas markets [3][12][13]. - The report highlights that the company has increased its investment in Trip, leading to a rise in marketing expenses, which has contributed to rapid growth in overseas markets and an increase in user share [3][13].

Core Viewpoint - Trip.com Group Limited is notifying holders of its 1.50% Exchangeable Senior Notes due 2027 about their right to require the company to repurchase these notes for cash on July 1, 2025, under specific terms outlined in the Indentures [1][2][3] Group 1: Repurchase Right Details - Holders can require the company to repurchase all or a portion of their Exchangeable Notes, with a minimum amount of US$200,000 or integral multiples of US$1,000 [2][3] - The repurchase price will be 100% of the principal amount plus any accrued and unpaid interest up to July 1, 2025 [2] - The total outstanding amount of Exchangeable Notes as of May 27, 2025, is US$500,000,000, which means the total cash purchase price could reach US$500,000,000 if all notes are surrendered [2] Group 2: Timeline and Procedures - The opportunity to exercise the 2025 Repurchase Right starts on May 28, 2025, at 9:00 a.m. and ends on June 27, 2025, at 5:00 p.m. [3] - Holders must follow specific transmittal procedures outlined in the 2025 Repurchase Right Notice to exercise their rights [3] - Holders can withdraw previously tendered Exchangeable Notes until June 27, 2025 [3] Group 3: Company Overview - Trip.com Group Limited is a leading global one-stop travel platform, offering a comprehensive suite of travel products and services [7] - The company operates under various brands, including Ctrip, Qunar, Trip.com, and Skyscanner, and aims to provide cost-effective travel solutions [7] - Founded in 1999 and listed on Nasdaq in 2003 and HKEX in 2021, the company continues to expand its reach among travelers worldwide [7]