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: $625.3.
Increase in Private Sector Jobs Slightly Below Expectations
In the data released on Friday, the non-farm payroll in November was 227,000, surpassing the market's expectation of 200,000. In detail, private sector jobs increased by 194,000, slightly below the market expectation of 200,000, with manufacturing jobs increasing by 22,000, also below the expected 28,000. Meanwhile, government sector jobs increased by 33,000. The job market recovered from the impacts of storms and strikes in October, with the average non-farm employment over the past three months at 162,000.
On Friday, southbound funds saw a net inflow of HK$4.978 billion. Alibaba (9988) received the highest inflow of HK$1.14 billion, followed by Tencent (700). Meituan (3690) recorded the highest net outflow of HK$1.19 billion, followed by Xiaomi Corporation (1810).
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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