Movement Alert|Trip.com Group Falls 7.13% in Regular Trading, Q1 Net Profit Drops 41.57% Amid Regulatory Headwinds

Market Focus06-25 09:36

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.)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment