First Read Trip.com Our take on the conclusion of anti-trust investigation

Research evidence excerpt

First Read Trip.com Our take on the conclusion of anti-trust investigation

Global Research

28 July 2026ab

First Read

EquitiesTrip.com

Our take on the conclusion of anti-trust China

investigation Internet Services

12-month rating Buy

12m price target US$65.00

The long waited removal of regulatory overhang

Prior : US$70.00

On 25 July, SAMR announced administrative decision on the antitrust investigation into

Trip.com, with rectification requirement and Rmb5.2bn penalty. Key issues identified Price (27 Jul 2026) US$44.42

include exclusive cooperation with special-tier hotels and enforcement of lowest-price RIC: TCOM.O BBG: TCOM US

online (details inside). With rectification plans announced, we expect Trip.com to

Trading data and key metrics

proactively refine operating model to comply with the evolving regulatory environment.

While some adjustments have already taken place (e.g., the discontinuation of price- 52-wk range US$78.96-39.84

adjustment tools in Mar-26) and have been reflected in 2Q26 guidance, we expect the Market cap. US$29.0b

ongoing transition of its delegated distribution programs to impact hotel take rate in Shares o/s 652m (ORD)

2H26 (UBSe of less than 1ppt). In addition, the extreme weather over summer holidays is Free float 91%

likely to weigh on hotel ADR/room nights in 3Q, with further uncertainty from macro/oil Avg. daily volume ('000) 2,823

prices, which may limit TCOM's upside in the near term. That said, we remain positive on Avg. daily value (m) US$129.7

TCOM's long-term thesis, aided by a stable domestic competitive landscape, continued Common s/h equity (12/26E) Rmb179b

overseas expansion, and potential demand recovery as growth normalizes next year. P/BV (12/26E) 1.1x

Net debt to EBITDA (12/26E) NM