Trip.com Shares Rise After Second-Quarter Profit Gain

By Tracy Qu

Trip.com Group shares surged in early Hong Kong trading after the Chinese travel company posted robust second-quarter earnings.

Shares rose 10% to 369.60 Hong Kong dollars in Tuesday morning trade, outperforming the Hang Seng Index's 0.2% drop. The gains took this year's advance to 33%.

The online travel company said Tuesday before market open that second-quarter net profit rose to 3.83 billion yuan (US$538.2 million), compared with CNY631 million a year ago. Revenue rose 14%, lifted by accommodation reservations and packaged tours.

"The second quarter of 2024 witnessed continued growth driven by strong travel demand, especially for cross-border travel," said James Liang, executive chairman of Trip.com.

Adjusted profit, which excludes share-based compensation charges and other items, was CNY4.985 billion for the quarter, compared with CNY3.43 billion for the same period in 2023.

Citi analysts led by Brian Gong said in a research note that Trip.com's results were "decent with strong earnings beat" and expect "valuation to become more attractive after the Street factors in the results."

Write to Tracy Qu at tracy.qu@wsj.com

(END) Dow Jones Newswires

August 26, 2024 23:23 ET (03:23 GMT)

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