7 Most Profitable Chinese Stocks To Invest In

2. Trip.com (NASDAQ:TCOM)  

TTM Net Income: $1.94 Billion  

5-Year Net Income CAGR: 49.52%  

Number of Hedge Fund Holders: 52  

Trip.com (NASDAQ:TCOM) is a leading Chinese online travel agency that offers a comprehensive range of booking services for hotels, transportation, tours, and corporate travel. The company is headquartered in Shanghai and has a significant global presence, with over 30,000 employees based in 95 locations in China and 22 international branches.

Trip.com’s (NASDAQ:TCOM) net income for the twelve months ending June 30 was $1.94 billion, a 108.49% increase year-over-year. This strong growth is a testament to the company’s resilience and ability to adapt to changing market conditions. Over the past five years, Trip.com’s (NASDAQ:TCOM) net income has achieved a notable 49.52% compound annual growth rate (CAGR).

Trip.com (NASDAQ:TCOM) benefits from China’s restrictive internet service regulations, which create barriers to entry for international competitors. The company is well-established in China and is expanding its international operations, which offer significant growth prospects. According to Mordor Intelligence, China’s tourism and hotel market is expected to grow at a CAGR of 5.53% from 2024 to 2029, reaching a value of $504.22 billion.

As the largest Chinese travel platform, Trip.com (NASDAQ:TCOM) enjoys extensive connections within the travel ecosystem, enabling it to acquire new outbound travelers with minimal incremental advertising costs. This supports margin growth and positions the company for long-term success. Trip.com’s (NASDAQ:TCOM) revenue is expected to grow by almost 5% in 2024, driven by the recovery of outbound travel through its Chinese and ASEAN region platforms. Trip.com (NASDAQ:TCOM) is poised to maintain its leadership in China while expanding its international presence.