Trip.com Group (TCOM) reported 4Q22 results on March 8, 2023, with net income of RMB 5 billion, up 7% YoY and 3/4% higher than consensus estimates. Non-GAAP net profit was RMB 4.98 billion, better than consensus estimates of a loss of RMB 140-152 million. The recovery in domestic and outbound travel in 1Q23 was better than expected, driven by pent-up demand, particularly for business travel. TCOM's cost-saving measures in the face of industry headwinds may help to quickly restore profitability and generate revenue, in our view. After factoring in better-than-expected revenue and earnings recovery, we raise our DCF-based target price to USD 44.60 (CNY 37x/23x 2023/2024E P/E). Maintain Buy.
