[True Insight Institutional View] Trip.com (09961.HK): Global Expansion Drives Strong Revenue Growth

$TRIP.COM-S(09961.HK) demonstrated strong revenue growth momentum in the fourth quarter of 2025, with total revenue increasing by more than 20% year-on-year, exceeding expectations. Core businesses such as accommodation reservations and business travel services all recorded significant growth, and global platform bookings surged by over 60%. This indicates that the company's overseas expansion strategy is highly effective, and diversified revenue sources such as advertising and financial services are further consolidating its market leadership, laying a solid foundation for long-term growth.

However, due to higher marketing costs invested during the peak season, operating profit margin performance was slightly weak. Although the gross profit margin remained within a healthy range, the increased proportion of marketing and administrative expenses reflects the cost pressure required to maintain high growth in a fiercely competitive environment. Investors should pay attention to how the company optimizes its cost structure through automation and technological means while expanding its scale, in order to restore more competitive profit levels in future quarters.

Looking ahead, the progress of industry regulatory investigations and their impact on the long-term business model remain core variables. Furthermore, the rise of generative artificial intelligence presents both a potential challenge and an opportunity for service transformation. Despite macroeconomic fluctuations and the uncertain pace of the hotel industry's recovery, the group's long-term growth prospects remain optimistic, driven by the strong recovery momentum of outbound and inbound travel, and it possesses robust investment appeal against the backdrop of the tourism market's recovery.

Source: KGI Securities