Date of Report

October 1, 2024

Broker Name

CGS International Securities

Company Overview

Trip.com is a key player in the consumer discretionary sector, specializing in travel services and online booking in China.

Current Market Position

• Current Market Capitalization: HK$ 40.8 billion
• Current Price: HK$ 530.0
• Target Price: HK$ 491.0

Analyst Recommendation

• Recommendation: Add
• Expected Return: The stock’s total return is anticipated to exceed 10% over the next 12 months.

Financial Projections

• Forward P/E (2024): 17.2
• Forward P/E (2025): 15.6

Strategic Outlook

The report highlights that Trip.com is positioned to benefit from the recent policy shifts aimed at boosting domestic travel and consumption in China. As the government encourages spending in the tourism sector, Trip.com’s comprehensive service offerings are expected to attract a growing number of consumers eager to travel.

Risks and Considerations

Investors should remain aware of potential risks, including fluctuations in travel demand and regulatory challenges. Economic conditions and consumer sentiment will play crucial roles in Trip.com’s performance.

Summary

Trip.com is presented as a strong investment opportunity within the consumer discretionary sector, benefiting from favorable government policies and a rebound in the travel market. The anticipated increase in travel demand positions Trip.com for significant growth, making it an attractive option for investors.