UBS issued a research report stating that TRIP.COM-S (09961) delivered second-quarter revenue and profit margins that exceeded expectations, while announcing a new share buyback program. The firm expects the company's third-quarter room nights to show robust growth, which should support China's domestic revenue maintaining a steady level of approximately 10%.

UBS maintains its third-quarter revenue and non-GAAP operating profit forecasts for TRIP.COM-S unchanged, projecting year-over-year growth of 14% and 32.5% respectively, while raising the target price from HK$588 to HK$660 with a "Buy" rating.

The firm noted that considering the gradual recovery of cross-border flight capacity and higher comparative base, TRIP.COM-S's outbound travel revenue growth is expected to further normalize in the third quarter, reaching low-teens growth. Meanwhile, the company's overseas business revenue growth continues to maintain strong momentum of over 50%.