Trip.com Group reported 3Q25 revenue of Rmb18.4bn (+16% YoY), and non-gaapoperating profit of Rmb6.1bn, higher than our expectation, mainly thanks to lowerthan-expected sales and marketing expense ratio. We raise 2025 non-gaap EPSforecast from Rmb27.8 to Rmb45.4 (mainly thanks to the investment gain fromMakemytrip), raise 2026 forecast from Rmb29.7 to Rmb30, and raise 2027 forecastfrom Rmb30 to Rmb31.6. Based on DCF model, we raise target price from HK$618to HK$657, with 21% upside, we maintain a Buy rating.
　　3Q25 performance. By business segment, the company’s accommodationreservation revenue increased by 18% YoY, transportation ticketing revenueincreased by 12%, packaged-tour revenue increased by 3%, corporate travel revenueincreased by 15%, and other business revenue increased by 34%. Overallreservations on Trip.com brand increased by over 60% YoY, inbound travel bookingssurged by over 100% YoY, outbound hotel and air ticket bookings increased by 140%over 2019 level.
　　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.
　　Risks: Lower-than-expected revenue growth; decline in profit margin due to increasedcompetitions.