TCOM

Trip.com Group Ltd - ADR

TMT, Consumer


Presented:03/03/2023
Price:$38.72
Cap:$23.94B
Current Price:$58.02
Cap:$37.37B

Presented

Date03/03/2023
Price$38.72
Market Cap$23.94B
Ent Value$18.55B
P/E RatioN/A
Book Value$25.14
Div Yield0%
Shares O/S618.32M
Ave Daily Vol5,458,612
Short IntN/A

Current

Price$58.02
Market Cap$37.37B
Trip.com Group Ltd. engages in the provision of travel-related services. It provides hotel accommodations, airline tickets, packaged tours, corporate travel management services, property management systems and advertising services. The company was founded by Jian Zhang Liang, Min Fan, Nan Peng Shen and Qi Ji in June 1999 and is headquartered in Shanghai, China.

Publicly traded companies mentioned herein: Booking Holdings Inc (BKNG), Expedia Group Inc (EXPE), Trip.com Group Ltd (TCOM)

Highlights

The number of people traveling still hasn’t fully recovered from pre-COVID and it’s reasonable to assume that normalization will continue throughout 2023. While behavior in most markets across the world have moved closer to normal, China is in a unique position as consumption overall and demand for travel will be strong but there are structural impediments (i.e., labor) to outbound travel that will negatively impact international travel from China over the next two years. This will be a process and the presenter views 2023 as a year of rebuilding the foundation for a strong next few years. Based on that backdrop, the presenter is long shares of Trip.com Group Ltd (TCOM), believing the stock is a double over the next two years as it benefits from this recovery. That outlook assumes a full recovery in 2026 and a valuation closer to BKNG/EXPE (~20x earnings) than its historical valuation upwards of 50x+ earnings. 

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Idea Discussion

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