Trip.com Group-S (09961) continued its upward trajectory, rising nearly 5% in Tuesday's trading session. As of press time, the stock was up 4.64%, trading at HK$365.4 with a turnover of HK$738 million.

On July 25, China's State Administration for Market Regulation announced an administrative penalty against Trip.com Group for abusing its market dominance through monopolistic practices. The company was ordered to forfeit illegal gains of RMB 1.658 billion and pay a fine of RMB 3.521 billion. Additionally, regulators mandated the full refund of RMB 122 million in order deposits forcibly withheld from hotel operators, requiring comprehensive rectification and public disclosure of corrective measures.

UOB Kay Hian released a research note stating that the penalty decision formally concludes the antitrust investigation, removing the key regulatory uncertainty surrounding the company. While compliance adjustments and related operational changes may cause short-term disruptions to domestic business, potentially slowing year-on-year revenue growth to between 3% and 8% in the second quarter of 2026, the overall impact on core profitability is expected to be relatively limited given that its international business continues to maintain rapid growth of over 30%.

The brokerage firm noted that with the conclusion of the regulatory probe and the release of risk, it anticipates the company's valuation discount will gradually narrow, paving the way for a re-rating.