Daily Investment Strategy
Recommended Stock：Trip.com（9961）
Trip.com reported a 16% yoy increase in net revenue in 3Q24, reaching RMB 15.9 billion, beating the expected RMB 15.64 billion. The adjusted EBITDA was RMB 5.7 billion, beating the expected RMB 5.28 billion and recorded growth compared to the RMB 4.6 billion in 3Q23. During the period, outbound travel continued to show rapid growth, with international OTA platform hotel and flight bookings increasing by over 60% yoy. Outbound hotel and flight bookings have fully recovered to 120% of pre-pandemic levels in 2019. Currently, the outbound travel market in China is characterized by both short- distance and longer-distance destinations, with Southeast Asia being one of the most popular regions, while emerging destinations like the UAE are attracting more travelers from China. Trip.com consistently grow at faster rate than the overall industry. With the increase in international flight availability and relaxed visa rules, its overseas operations are poised to benefit from a rebound in market demand. Target price: $570.
Li Qiang emphasized the needs of promoting the platform economy
On November 22, Li Qiang chaired a State Council executive meeting, where he mentioned the need to promote the platform economy, stressing the importance of increasing policy support to harness the development potential of consumer internet platform enterprises. Currently, online retail sales account for 25.9% of the total retail sales of consumer goods. Although the specific support details have not yet been released, it is expected to be one of the key directions for promoting consumption in the future.
On Friday, there was a net inflow of 2.56 billion HKD through the Stock Connect program. Sunny Optical (2382) saw the largest inflow, amounting to 315 million HKD, followed by CNOOC (883). Tencent Holdings (700) recorded the largest net outflow of 430 million HKD, followed by Alibaba (9988).
Wen Kit Kenny is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to:https://apps.sfc.hk/publicregWeb/indi/AJF244/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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