China Internet & New Media: Four More OTAs Under Investigation

Nomura's China Internet & New Media report notes that, following earlier regulatory action, four more online travel platforms (OTAs) are under investigation, keeping regulatory pressure on the sector. The report covers Meituan (3690 HK, Buy, TP HKD118), Alibaba (BABA US, Buy, TP USD178) and Trip.com (TCOM US, Neutral, TP USD44), with prices as of 18-Sep-2026. Valuation: Meituan's TP is derived from a sum of the parts - food delivery USD25bn (8x FY28F P/E discounted to FY27), instashopping USD7bn (15x FY27F normalized P/E), in-store, hotel and travel USD15bn (5x FY27F P/E) and new business USD24bn (1.0x FY27F P/S); Alibaba's TP reflects China Ecommerce Group at USD87bn (5x FY27F P/E), AliCloud at USD278bn (7x FY28F P/S) and net non-core assets of USD40bn; Trip.com's TP is based on 11x FY27F P/E. Risks: for Meituan, intensifying competition in food delivery and in-store consumption verticals and weaker-than-expected performance in new initiatives;