China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

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Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

Equity Bottom-Up

<ul>
<li>TCOM reported C2Q24 revenue in-line with our est./cons., non-GAAP operating income also in-line with our est./cons., and non-GAAP net income beat our est./cons. by 18%/40%,mainly due to rising equity income</li>
<li>Robust int'l growth offset weakness in domestic. With services possibly included in the government consume subsidy in C2H24/1H25 and Rmb's appreciation.</li>
<li>We feel it is time to buy TCOM again, TP to US$50 from US$42.</li>
</ul>


TCOM reported C2Q24 revenue in-line with our est./cons., non-GAAP operating income also in-line with our est./cons., and non-GAAP net income beat our est./cons. by 18%/40%,mainly due to rising equity income
Robust int'l growth offset weakness in domestic. With services possibly included in the government consume subsidy in C2H24/1H25 and Rmb's appreciation.
We feel it is time to buy TCOM again, TP to US$50 from US$42.


[Trip.com (TCOM US, BUY, TP US$50) Rating Change]: Beyond the Difficult Time…Upgrade to BUY