CROSBY Research – Trip.com (9961 HK): Solid growth in 1Q24

27 May 2024

Trip.com announced its 1Q24 results, with net revenue up by 29% YoY to Rmb11.9bn, and also up 15% QoQ compared to 4Q23, mainly due to higher demand and seasonality. GPM maintained relatively stable at 81% in 1Q24, compared to 82% in 1Q23 and 81% in 4Q23. Product development expenses in 1Q24 was up 16% YoY, while sales and marketing expenses was up 32% YoY on higher A&P activities. G&A up by only 4% YoY on good cost control.  As a result, 1Q24 NP was up 28% YoY to Rmb4.3bn.  By end of 1Q24, COH & ST investments amounted at around Rmb81.9bn