On June 25, Trip.com Group (09961.HK) fell 7.13% in regular trading, trading at 326.6 HKD/share, with turnover of 242 million HKD.
The decline was triggered by a disappointing earnings release coupled with intensifying regulatory pressures. Trip.com reported Q1 net revenue of 16.2 billion RMB, up 17% YoY and slightly above consensus estimates of 15.84 billion RMB. However, net profit attributable to shareholders plunged 41.57% YoY to 2.5 billion RMB, with diluted EPS falling 39.74% to 3.67 RMB. The Q2 revenue growth guidance of only 3-8% YoY signals a sharp deceleration.
Concurrently, the company disclosed it is currently facing investigations from national authorities regarding competition law and consumer protection matters. This follows a 10 million RMB fine for data export violations and a pending antitrust probe launched in January, with estimated potential penalties of approximately 2 billion RMB. Operating costs rose 23% YoY while sales and marketing expenses surged 25%, compressing profitability despite top-line growth.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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