Trip.com (TCOM, Financial) shares rose by 1% in pre-market trading, reaching $65.65. Analysts from Daiwa have noted that since the start of 2024, Trip.com has been steadily increasing its market share. The recent visa-free policy introduced by China is expected to further boost the company's inbound tourism opportunities. It is projected that by 2025, Trip.com's inbound tourism revenue will double, accounting for approximately 28% of Trip.com's total revenue and about 4% of the group's overall revenue. This growth in inbound tourism is anticipated to act as a strong catalyst for the company.
Additionally, Citibank's report on the Asia-Pacific internet industry suggests that the valuation of Chinese internet stocks is reasonable, with improving growth quality. However, the sector's performance remains closely tied to the pace of macroeconomic and consumer recovery in China. Citibank's top picks for the first half of the year in the Chinese internet sector include Tencent, Trip.com, and Meituan, all of which have been given a "buy" rating.
