DB:CTI

Stock Analysis Report

China Travel International Investment Hong Kong

Executive Summary

China Travel International Investment Hong Kong Limited, an investment holding company, provides travel and tourism services.

Rewards

PE ratio (10.6x) is below the German market (20.6x)

Risk Analysis

Earnings are forecast to decline by an average of -11.7% per year for the next 3 years

Unstable dividend track record

Profit margins (15.6%) are lower than last year (24.9%)



Snowflake Analysis

Flawless balance sheet established dividend payer.

Share Price & News

How has China Travel International Investment Hong Kong's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CTI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-9.4%

CTI

-3.0%

DE Hospitality

0.3%

DE Market


1 Year Return

-39.7%

CTI

-24.7%

DE Hospitality

13.8%

DE Market

Return vs Industry: CTI underperformed the German Hospitality industry which returned -15.8% over the past year.

Return vs Market: CTI underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

CTIIndustryMarket
7 Day-9.4%-3.0%0.3%
30 Day2.9%-7.8%1.7%
90 Day-2.7%-11.0%5.7%
1 Year-38.3%-39.7%-19.8%-24.7%17.4%13.8%
3 Year-38.2%-42.6%-12.9%-24.5%15.9%5.7%
5 Year-39.9%-48.0%-12.3%-29.2%27.9%10.6%

Price Volatility Vs. Market

How volatile is China Travel International Investment Hong Kong's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is China Travel International Investment Hong Kong undervalued compared to its fair value and its price relative to the market?

9.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CTI (€0.15) is trading above our estimate of fair value (€0.1)

Significantly Below Fair Value: CTI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CTI is good value based on its PE Ratio (10.6x) compared to the Hospitality industry average (20.5x).

PE vs Market: CTI is good value based on its PE Ratio (10.6x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: CTI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CTI is good value based on its PB Ratio (0.5x) compared to the DE Hospitality industry average (2.3x).


Next Steps

Future Growth

How is China Travel International Investment Hong Kong forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTI's earnings are forecast to decline over the next 3 years (-11.7% per year).

Earnings vs Market: CTI's earnings are forecast to decline over the next 3 years (-11.7% per year).

High Growth Earnings: CTI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CTI's revenue (0.7% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: CTI's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CTI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has China Travel International Investment Hong Kong performed over the past 5 years?

-11.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTI has high quality earnings.

Growing Profit Margin: CTI's current net profit margins (15.6%) are lower than last year (24.9%).


Past Earnings Growth Analysis

Earnings Trend: CTI's earnings have declined by -11.1% per year over the past 5 years.

Accelerating Growth: CTI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CTI had negative earnings growth (-36.9%) over the past year, making it difficult to compare to the Hospitality industry average (-39.6%).


Return on Equity

High ROE: CTI's Return on Equity (5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Travel International Investment Hong Kong's financial position?


Financial Position Analysis

Short Term Liabilities: CTI's short term assets (HK$6.7B) exceed its short term liabilities (HK$2.6B).

Long Term Liabilities: CTI's short term assets (HK$6.7B) exceed its long term liabilities (HK$1.6B).


Debt to Equity History and Analysis

Debt Level: CTI's debt to equity ratio (0.5%) is considered satisfactory.

Reducing Debt: CTI's debt to equity ratio has reduced from 12.7% to 0.5% over the past 5 years.

Debt Coverage: CTI's debt is well covered by operating cash flow (683.9%).

Interest Coverage: CTI earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: CTI has a high level of physical assets or inventory.

Debt Coverage by Assets: CTI's debt is covered by short term assets (assets are 81.1x debt).


Next Steps

Dividend

What is China Travel International Investment Hong Kong's current dividend yield, its reliability and sustainability?

4.61%

Current Dividend Yield


Dividend Yield vs Market

company4.6%marketbottom25%1.3%markettop25%3.6%industryaverage5.5%forecastin3Years4.2%

Current dividend yield vs market & industry

Notable Dividend: CTI's dividend (4.26%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: CTI's dividend (4.26%) is in the top 25% of dividend payers in the German market (3.53%)


Stability and Growth of Payments

Stable Dividend: CTI's dividend payments have been volatile in the past 10 years.

Growing Dividend: CTI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.5%), CTI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CTI's dividends in 3 years are forecast to be well covered by earnings (42% payout ratio).


Next Steps

Management

What is the CEO of China Travel International Investment Hong Kong's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

China Travel International Investment Hong Kong has no CEO, or we have no data on them.


Management Age and Tenure

1.3yrs

Average Tenure

50yo

Average Age

Experienced Management: CTI's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

1.3yrs

Average Tenure

53yo

Average Age

Experienced Board: CTI's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Sui Lo (68yo)

    Vice Chairman

    • Compensation: HK$240.00k
  • Siu Chung Lai (51yo)

    Company Secretary

    • Tenure: 9.8yrs
  • Changle Wang (63yo)

    CEO & Director of China Travel Hong Kong (Zhuhai) Ocean Spring Co Ltd

    • Zhuoyang Fu (59yo)

      Chairman

      • Tenure: 1.6yrs
      • Compensation: HK$1.49m
    • Xinjian Du (52yo)

      Financial Controller

      • Hong Jiang (49yo)

        GM & Executive Director

        • Tenure: 1.3yrs
        • Compensation: HK$454.35k
      • Cheng You (44yo)

        Executive Director

        • Tenure: 1.3yrs
        • Compensation: HK$837.98k
      • Hao Yang (42yo)

        Executive Director

        • Tenure: 1.1yrs
        • Compensation: HK$12.00k
      • Qiang Wu (47yo)

        Executive Deputy GM & Executive Director

        • Tenure: 0.8yrs
      • Dongsheng Fan (40yo)

        Executive Director


        Board Members

        • Zhenming Guo (62yo)

          GM & Director of China Travel Service (Cargo) Hong Kong Ltd

          • Yanzhong Li (57yo)

            GM & Director of Shenzhen - Splendid China Development Co Ltd

            • Tenure: 18.7yrs
          • Sui Lo (68yo)

            Vice Chairman

            • Compensation: HK$240.00k
          • Changle Wang (63yo)

            CEO & Director of China Travel Hong Kong (Zhuhai) Ocean Spring Co Ltd

            • Zhuoyang Fu (59yo)

              Chairman

              • Tenure: 1.6yrs
              • Compensation: HK$1.49m
            • Hong Jiang (49yo)

              GM & Executive Director

              • Tenure: 1.3yrs
              • Compensation: HK$454.35k
            • Cheng You (44yo)

              Executive Director

              • Tenure: 1.3yrs
              • Compensation: HK$837.98k
            • Hao Yang (42yo)

              Executive Director

              • Tenure: 1.1yrs
              • Compensation: HK$12.00k
            • Qiang Wu (47yo)

              Executive Deputy GM & Executive Director

              • Tenure: 0.8yrs
            • Dongsheng Fan (40yo)

              Executive Director

              Company Information

              China Travel International Investment Hong Kong Limited's company bio, employee growth, exchange listings and data sources


              Key Information

              • Name: China Travel International Investment Hong Kong Limited
              • Ticker: CTI
              • Exchange: DB
              • Founded:
              • Industry: Hotels, Resorts and Cruise Lines
              • Sector: Consumer Services
              • Market Cap: HK$7.198b
              • Listing Market Cap: HK$839.900m
              • Shares outstanding: 5.54b
              • Website: https://null

              Number of Employees


              Location

              • China Travel International Investment Hong Kong Limited
              • CTS House
              • 12th Floor
              • Central
              • Hong Kong

              Listings

              TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
              CTVI.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1992
              CTIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1992
              308SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 1992
              308SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 1992
              308SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 1992

              Biography

              China Travel International Investment Hong Kong Limited, an investment holding company, provides travel and tourism services. Its Tourist Attraction Operations segment operates theme parks, scenic spots, cable car systems, skiing facilities, hotspring resorts, and other resorts, as well as engages in arts performance and tourism property development activities in the Mainland China. The company’s Travel Agency, Travel Document, and Related Operations segment provides travel agency, travel document, and related services in Hong Kong, Mainland China, South East Asia, Oceania, the United States, and countries in the European Union. Its Hotel Operations segment offers hotel accommodation, and food and beverage services in Hong Kong, Macau, and Mainland China. The company’s Passenger Transportation Operations segment provides cross-border transportation services to individuals travelling between Hong Kong, Macau, and Mainland China; and vehicle rental and charter operations in Hong Kong, Macau, and Mainland China. It also trades in computer equipment and provides computer services; and offers travel and air ticketing, printing and advertising, and entry permit handling agency services. In addition, the company is involved in property investment and software system development activities; and conference and exhibition operations. The company is based in Central, Hong Kong. China Travel International Investment Hong Kong Limited is a subsidiary of China Travel Service (Holdings) Hong Kong Limited. 


              Company Analysis and Financial Data Status

              All financial data provided by Standard & Poor's Capital IQ.
              DataLast Updated (UTC time)
              Company Analysis2020/01/24 20:33
              End of Day Share Price2020/01/24 00:00
              Earnings2019/06/30
              Annual Earnings2018/12/31


              Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.