On June 26, Trip.com Group-S (09961.HK) fell 3.49% in regular trading, trading at HKD 306.6 with turnover of HKD 267 million, extending the prior session's post-earnings selloff.
The decline follows the company's Q1 earnings release on June 25, which showed net revenue of RMB 16.2 billion (up 17% YoY) but net profit attributable to shareholders plunged 41.57% to RMB 2.5 billion. More critically, management guided Q2 revenue growth to decelerate sharply to just 3%-8%, citing energy price increases, geopolitical volatility, and operational adjustments related to evolving regulatory compliance requirements.
The earnings also formally disclosed that the State Administration for Market Regulation launched an anti-monopoly investigation in January under the Anti-Monopoly Law over alleged abuse of market dominance. The company warned the probe could result in significant fines or mandatory business practice changes. Citi maintained a Buy rating but flagged investor focus on the investigation's progression and the impact of hotel listing rectifications on long-term fundamentals.
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