- Trip.com‘s fourth quarter adjusted earnings per American depositary receipts (ADS) beat estimates, reporting 4.00 yuan against the estimated 2.34 yuan.
- The company’s revenue stood at 10.34 billion yuan, significantly higher than the previous year’s 5.03 billion yuan and also surpassing the estimated 10.21 billion yuan.
- The accommodation reservation revenue was 3.90 billion yuan, up from 1.69 billion yuan year-on-year and almost meeting the estimated 3.92 billion yuan.
- Transportation ticketing revenue witnessed an 86% year-on-year growth, reaching 4.11 billion yuan, slightly below the estimated 4.12 billion yuan.
- Packaged-tour revenue also saw a significant increase, from 164 million yuan year-on-year to 704 million yuan, beating the estimated 661 million yuan.
- The corporate travel revenue also surpassed estimates, with 634 million yuan against the estimated 569.3 million yuan, and higher than the previous year’s 277 million yuan.
- Other revenues of the company increased by 42% year-on-year, reporting 991 million yuan against the estimated 944.2 million yuan.
- The gross profit for the fourth quarter was 8.32 billion yuan, higher than the previous year’s 3.83 billion yuan and the estimated 8.08 billion yuan.
- In 2023, China embarked on a significant journey of reconnecting with the world, driven by the rising travel sentiment.
- Among analysts, Trip.com has received 34 buy ratings, 2 hold ratings, and 0 sell ratings.
Trip.com on Smartkarma
According to analysts on Smartkarma, an independent investment research network, Trip.com (TCOM US, 9961 HK) has seen a strong recovery in overseas traveling during the Chinese New Year. Ming Lu reports that revenue for the company is now 30% higher than pre-COVID levels, with travelers increasing by 75% and spending increasing by 144% in China during the first nine months of 2023. This has led to a 31% increase in revenue for the third quarter of 2023 compared to the same period in 2019. Lu believes there is still potential for further growth, estimating an upside of 33% and setting a price target of US$43.70.
Meanwhile, Daniel Hellberg‘s analysis shows that China’s tourism recovery is delayed compared to other major tourist sources in Asia, but not slower. In fact, he shares ten charts demonstrating the country’s ongoing recovery in outbound and domestic tourism demand. He also notes that domestic activity in December remained close to pre-COVID levels, while outbound tourism improved to 89% of 2019 levels. However, Hellberg also cautions that there is no evidence of “pent-up demand” in the market, and Chinese travel stocks have been performing poorly as a result.
A look at Trip.com Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Trip.com, an online travel agency, has received high scores in several key areas according to Smartkarma’s Smart Scores. The company scored a 4 out of 5 in value, indicating that it is a good investment opportunity. However, it received a low score of 1 in dividend, meaning it may not be the best choice for investors seeking regular payouts. On the other hand, Trip.com scored a 5 out of 5 in both growth and momentum, showing strong potential for future growth and positive market sentiment. Additionally, the company received a solid score of 4 in resilience, indicating its ability to withstand market fluctuations. Overall, the outlook for Trip.com looks promising according to these scores.
As an online travel agency, Trip.com offers a variety of services such as hotel reservations, flight ticketing, and package tours. Its mobile applications make it convenient for customers to plan and book their trips. With a high score of 5 in growth, the company is expected to continue expanding and potentially increase its market share in the travel industry. Additionally, its strong momentum score of 5 suggests that investors have confidence in the company’s future prospects. While Trip.com may not be the best option for those seeking dividends, its overall scores indicate a positive long-term outlook for the company.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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