8 Most Promising Chinese Stocks According to Hedge Funds

4. Trip.com Group Limited (NASDAQ:TCOM)

Number of Hedge Fund Holders: 52

Trip.com Group Limited (NASDAQ:TCOM) is a leading Chinese online travel agency that offers a wide range of booking services for hotels, transportation, tours, and corporate travel. The company has a significant global presence, with over 30,000 employees based in 95 locations in China and 22 international branches. On September 10, Trip.com reported that it was named the “Fast-Growing Brand” in the Interbrand Best China 2024 list, as the company continues to grow and seek innovation.

Trip.com is shaping the travel industry through its AI-powered solutions and its strategic focus on enhancing the customer journey. On September 4, the company announced a new product matrix for its corporate travel management brand, Trip.Biz. Through AI, Trip.Biz is transforming human-centric technology to deliver All-in-One digital solutions. The updated product matrix includes six core products including, Trip.Biz OBT & App, Trip.Biz Reporting, Trip.Biz Payment, Trip.Biz Desk, Trip.Biz ESG, and Trip.Biz Care.

During the second quarter of 2024, Trip.com Group Limited (NASDAQ:TCOM) reported a revenue of $1.74 billion, surpassing estimates by $8.73 million. The company has grown its net income at a compound annual growth rate (CAGR) of 49.52% over the past five years. This strong growth reflects the company’s dominance and ability to adapt to changing market conditions.

In the last quarter, the company observed that new flight routes have more than doubled search volumes compared to corresponding destinations. Similarly, inbound travel to China has seen remarkable growth in the first half of 2024, a rise of over 150% year-over-year. In Q2 2024, Trip.com’s hotel reservations by Chinese travelers increased by approximately 20% year-over-year, reflecting an enduring interest.

Trip.com Group Limited (NASDAQ:TCOM) 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 anticipated to grow at a CAGR of 5.53% from 2024 to 2029, reaching a value of $504.22 billion. The increasing tourism and hotel market shows that Trip.com has a large market to capture and the company is yet to benefit from this increasing market.