2024-07-25 05:39:50 ET
Summary
- Strong profitability: Trip.com boasts high and consistently growing profit margins, with gross margins over 80% and a leading position in China's Online Travel Agent (OTA) sector.
- Market dominance: The company has achieved near-monopoly status through aggressive acquisitions and investments, both domestically and internationally, giving it significant bargaining power.
- Growth challenges: Trip.com faces increasing competition from Meituan and Douyin, and struggles to expand into lower-tier cities, potentially limiting future growth prospects.
- Therefore, a hold rating is given until a clearer future.
Investment thesis
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For further details see:
Trip.com: Behind The Sales Outperformance Are A Series Of Concerns