GTHT Securities released a research report maintaining an "Overweight" rating on TRIP.COM-S (09961) with a target price of HKD 733, citing steady domestic growth and continued high expansion overseas. The company has increased investment returns while consistently expanding its user base and market influence. Key highlights from GTHT's analysis include:

**Strong Earnings Beat in Q3 2025** Revenue reached RMB 18.367 billion (+15.52% YoY), with adjusted EBITDA at RMB 6.346 billion (+11.73% YoY) and adjusted operating profit at RMB 6.134 billion (+12.2% YoY). Due to gains from partial investment divestments, net profit attributable to shareholders surged to RMB 19.890 billion (+194.01% YoY), while adjusted non-GAAP net profit rose to RMB 19.156 billion (+221.25% YoY).

**Segment Performance Breakdown** 1. **Transportation**: After a slowdown in Q2 2025, growth rebounded in Q3 (+11.6% YoY vs. +10.8% in Q2), driven by peak season demand and overseas expansion. 2. **Hotels**: Growth remained double-digit YoY but continued to decelerate sequentially, reflecting normalization in both domestic and international markets. 3. **Package Tours**: Growth has slowed significantly since Q1 2025, attributed partly to a shift toward independent travel but primarily to risks in key destinations like Southeast and East Asia. 4. **Corporate Travel**: A bright spot, corporate travel revenue saw its fastest growth since Q1 2024, signaling stabilization in business demand.

**Stable Profitability Amid Overseas Competition** 1. Operating margins remained resilient, though gross margin dipped slightly due to higher overseas business mix. 2. Increased marketing spend on Trip.com aligned with budget plans, partly in response to competitive pressures abroad. However, this investment has fueled rapid user acquisition and market share gains overseas. 3. TRIP.COM has delivered multi-quarter margin improvements, reflecting a favorable competitive landscape, stable profitability, and smooth overseas execution.

**Risk Factors** Potential risks include economic volatility impacting corporate travel demand, intensified overseas competition, and geopolitical uncertainties in outbound destinations.