SEHK:1235

Stock Analysis Report

Travel Expert (Asia) Enterprises

Executive Summary

Travel Expert (Asia) Enterprises Limited, an investment holding company, provides travel agency services in Hong Kong and the People’s Republic of China.

Snowflake

Fundamentals

Adequate balance sheet unattractive dividend payer.

Share Price & News

How has Travel Expert (Asia) Enterprises's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

1235

1.1%

HK Hospitality

0.3%

HK Market


1 Year Return

-45.3%

1235

18.3%

HK Hospitality

1.3%

HK Market

Return vs Industry: 1235 underperformed the Hong Kong Hospitality industry which returned 18.3% over the past year.

Return vs Market: 1235 underperformed the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

1235IndustryMarket
7 Day0%1.1%0.3%
30 Day-5.5%1.3%0.5%
90 Day-26.8%-5.1%-4.6%
1 Year-41.4%-45.3%22.2%18.3%4.9%1.3%
3 Year-59.9%-64.9%23.9%12.3%15.3%3.7%
5 Year-65.9%-73.2%-5.7%-20.9%20.0%-0.006%

Price Volatility Vs. Market

How volatile is Travel Expert (Asia) Enterprises's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Travel Expert (Asia) Enterprises undervalued compared to its fair value and its price relative to the market?

0.79x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 1235 (HK$0.26) is trading above our estimate of fair value (HK$0.15)

Significantly Below Fair Value: 1235 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1235 is unprofitable, so we can't compare its PE Ratio to the Hospitality industry average.

PE vs Market: 1235 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1235's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1235 is good value based on its PB Ratio (0.8x) compared to the HK Hospitality industry average (0.9x).


Next Steps

Future Growth

How is Travel Expert (Asia) Enterprises forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.8%

Forecasted Consumer Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Travel Expert (Asia) Enterprises has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Travel Expert (Asia) Enterprises performed over the past 5 years?

-62.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1235 is unprofitable, and losses have increased over the past 5 years at a rate of -62.1% per year.

Accelerating Growth: Unable to compare 1235's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1235 is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-5.3%).


Return on Equity

High ROE: 1235 has a negative Return on Equity (-8.19%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 1235 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 1235 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Travel Expert (Asia) Enterprises's financial position?


Financial Position Analysis

Short Term Liabilities: 1235's short term assets (HK$204.1M) exceeds its short term liabilities (HK$167.4M)

Long Term Liabilities: 1235's short term assets (204.1M) exceeds its long term liabilities (56.0K)


Debt to Equity History and Analysis

Debt Level: 1235's debt to equity ratio (2%) is considered satisfactory

Reducing Debt: 1235's debt to equity ratio has reduced from 15.9% to 2% over the past 5 years.

Debt Coverage: 1235's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 1235's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 1235 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1235's debt is covered by short term assets (assets are 59.812420x debt).


Next Steps

Dividend

What is Travel Expert (Asia) Enterprises's current dividend yield, its reliability and sustainability?

7.69%

Current Dividend Yield


Dividend Yield vs Market

company7.7%marketbottom25%2.3%markettop25%6.2%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1235's dividend (7.69%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1235's dividend (7.69%) is in the top 25% of dividend payers in the Hong Kong market (6.18%)

Stable Dividend: 1235 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1235 has only been paying a dividend for 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: 1235 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Travel Expert (Asia) Enterprises's salary, the management and board of directors tenure and is there insider trading?

8.1yrs

Average management tenure


CEO

Hang Fan Cheng (60yo)

8.1yrs

Tenure

HK$1,123,000

Compensation

Ms. Hang Fan Cheng is a co-founder and has been the Chief Executive Officer at Travel Expert (Asia) Enterprises Limited since September 6, 2011. Ms. Cheng has over 26 years of experience in the travel indu ...


CEO Compensation Analysis

Compensation vs. Market: Hang Fan's total compensation ($USD143.19K) is about average for companies of similar size in the Hong Kong market ($USD215.97K).

Compensation vs Earnings: Hang Fan's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

8.1yrs

Average Tenure

59yo

Average Age

Experienced Management: 1235's management team is seasoned and experienced (8.1 years average tenure).


Board Age and Tenure

8.3yrs

Average Tenure

59yo

Average Age

Experienced Board: 1235's board of directors are considered experienced (8.3 years average tenure).


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


Management Team

  • Yin Wah Cheng (49yo)

    COO, Company Secretary & Executive Director

    • Tenure: 0.3yrs
  • Daniel Ko (59yo)

    Chairman

    • Tenure: 8.1yrs
    • Compensation: HK$126.00k
  • Hang Fan Cheng (60yo)

    CEO & Executive Director

    • Tenure: 8.1yrs
    • Compensation: HK$1.12m
  • Elsa Ho (59yo)

    Division Head of Talent Management

    • Tenure: 0yrs
  • Siu Cheong Cheung (62yo)

    Division Head of Product Development

    • Tenure: 0yrs
  • Wan Fung Chan (50yo)

    CFO & Executive Director

    • Tenure: 7.5yrs
    • Compensation: HK$1.64m
  • Yuet Lai Au-Yeung

    Manager of Human Resources & Administration

    • Tenure: 0yrs
  • Yee Mee Chan

    Manager of Corporate Communications

    • Tenure: 0yrs

Board Members

  • Victor Yung (65yo)

    Independent Non-Executive Director

    • Tenure: 8.5yrs
    • Compensation: HK$180.00k
  • Yin Wah Cheng (49yo)

    COO, Company Secretary & Executive Director

    • Tenure: 0.3yrs
  • King Sau Mak (45yo)

    Independent Non-Executive Director

    • Tenure: 8.3yrs
    • Compensation: HK$144.00k
  • Daniel Ko (59yo)

    Chairman

    • Tenure: 8.1yrs
    • Compensation: HK$126.00k
  • Hang Fan Cheng (60yo)

    CEO & Executive Director

    • Tenure: 8.1yrs
    • Compensation: HK$1.12m
  • Chi Man Szeto (62yo)

    Independent Non-Executive Director

    • Tenure: 8.5yrs
    • Compensation: HK$144.00k
  • Wan Fung Chan (50yo)

    CFO & Executive Director

    • Tenure: 7.5yrs
    • Compensation: HK$1.64m

Company Information

Travel Expert (Asia) Enterprises Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Travel Expert (Asia) Enterprises Limited
  • Ticker: 1235
  • Exchange: SEHK
  • Founded: 1986
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: HK$132.563m
  • Shares outstanding: 509.86m
  • Website: https://www.tegroup.com.hk

Number of Employees


Location

  • Travel Expert (Asia) Enterprises Limited
  • Units A-C, D2 Place TWO
  • 9th Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1235SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 2011

Biography

Travel Expert (Asia) Enterprises Limited, an investment holding company, provides travel agency services in Hong Kong and the People’s Republic of China. It operates through Travel and Travel/Wedding Relat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:49
End of Day Share Price2019/10/22 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.