2025-08-28 02:12Summary 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.