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2026-09-04 15:36:02 HSBC Global Investment Research issued a report saying that the share price of Trip.com Group Limited (TCOM.US) remains under pressure, with even the conclusion of the antitrust investigation failing to lift market sentiment. The broker said it had previously focused excessively on the company's long-term moat while underestimating the combined impact of structural headwinds including regulation, competition and demand. The broker noted that summer travel demand has been weak. Flight and hotel data both indicated that peak-season demand in 3Q26 softened due to weather conditions and weak consumer confidence. The market already expects the company's 2Q26 revenue growth to slow to 3-8% from 17% in 1Q26. Meanwhile, antitrust remedies requiring the company to abandon its high-margin exclusive distribution model, intensifying competition, as well as international expansion and AI investment are expected to continue pressuring operating profit margins for at least the next two to three quarters. The broker downgraded Trip.com Group Limited (TCOM.US) from Buy to Hold and cut its target price from USD60 to USD48. Based on the consumption downgrade trend and attractive valuation, the broker prefers TONGCHENGTRAVEL (00780.HK). It also recommended Buy on MakeMyTrip Limited - Ordinary Shares (MMYT.US) due to its potential India listing plan and margin expansion prospects. (sl/u)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |