Daiwa released a research report stating that TRIP.COM-S (09961) second quarter earnings exceeded market expectations by 8%, driven by accommodation business revenue and other income surpassing forecasts. The company simultaneously announced a new US$5 billion share buyback program.

Looking ahead to the third quarter, the firm expects revenue and operating margin to align with current market expectations, while noting that operating margins may have upside potential as marketing expenses could be lower than anticipated. The firm also expects that after the group completes its investment in international business this year, operating margins are likely to recover next year.

The target price has been raised from HK$745 to HK$750, equivalent to a projected price-to-earnings ratio of 25 times, while reaffirming a "Buy" rating.