Trip.com Group reported 1Q25 revenue of Rmb13.9bn (+16% YoY), non-gaapoperating profit of Rmb4bn, and non-gaap operating profit margin of 29%, in line withour expectation. We maintain our 2025E non-gaap EPS forecast of Rmb27.7, 2026Eof Rmb29.7, and 2027E of Rmb30. We maintain target price at HK$590, with 22%upside, we maintain a Buy rating.
　　1Q25 performance. By business segment, the company’s accommodationreservation revenue increased by 23% YoY, transportation ticketing revenueincreased by 8%, packaged tour revenue increased by 7%, corporate travel revenueincreased by 12%, and other business revenue increased by 33%. By region,domestic, outbound, and pure overseas revenue accounted for 65% (low teensgrowth YoY), 15% (20% growth YoY), and 20% (30%+ growth YoY), respectively.
　　Pure overseas Trip.com brand contributed 13% (50%+ growth YoY) of total revenue.
　　2Q25 Outlook. We expect revenue to grow by 14% YoY, with domestic business lowteens, outbound travel up by 15%, and the Trip.com brand up by over 50%. Weexpect domestic hotel price decline to narrow. The recovery rate of outbound travelbusiness compared to 2019 is expected to rise from 50% in 1Q25 to 60%.
　　Accommodation revenue growth at Trip.com will outpace transportation.
　　Maintain Buy. We continue to be optimistic about Trip.com Group’s leading positionin China's online travel industry and its potential to gain market share in theinternational market. We maintain target price at HK$590, with 22% upside, wemaintain Buy rating.
　　Risks: Lower-than-expected revenue growth; decline in profit margin due to increasedcompetitions.