TravelSky Technology Limited

SEHK:696 Stock Report

Market Cap: HK$32.4b

TravelSky Technology Valuation

Is 696 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 696 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 696 (HK$11.06) is trading below our estimate of fair value (HK$19.89)

Significantly Below Fair Value: 696 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 696?

Key metric: As 696 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 696. This is calculated by dividing 696's market cap by their current earnings.
What is 696's PE Ratio?
PE Ratio19.3x
EarningsCN¥1.57b
Market CapCN¥30.24b

Price to Earnings Ratio vs Peers

How does 696's PE Ratio compare to its peers?

The above table shows the PE ratio for 696 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average29.1x
780 Tongcheng Travel Holdings
20.3x16.4%HK$42.0b
69 Shangri-La Asia
17x34.5%HK$19.5b
308 China Travel International Investment Hong Kong
72.6x39.0%HK$5.7b
71 Miramar Hotel and Investment Company
6.5xn/aHK$6.3b
696 TravelSky Technology
19.3x17.2%HK$32.4b

Price-To-Earnings vs Peers: 696 is good value based on its Price-To-Earnings Ratio (19.3x) compared to the peer average (29.1x).


Price to Earnings Ratio vs Industry

How does 696's PE Ratio compare vs other companies in the HK Hospitality Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1383 LET Group Holdings
1.3xn/aUS$38.09m
1655 Okura Holdings
0.7xn/aUS$9.41m
8052 Luk Hing Entertainment Group Holdings
1.3xn/aUS$2.68m
8475 E-Station Green Technology Group
0.4xn/aUS$2.28m
696 19.3xIndustry Avg. 16.9xNo. of Companies6PE01020304050+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 696 is expensive based on its Price-To-Earnings Ratio (19.3x) compared to the Hong Kong Hospitality industry average (16.9x).


Price to Earnings Ratio vs Fair Ratio

What is 696's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

696 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.3x
Fair PE Ratio14.4x

Price-To-Earnings vs Fair Ratio: 696 is expensive based on its Price-To-Earnings Ratio (19.3x) compared to the estimated Fair Price-To-Earnings Ratio (14.4x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 696 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$11.06
HK$11.68
+5.6%
14.7%HK$15.04HK$9.48n/a7
Dec ’25HK$10.46
HK$11.68
+11.7%
14.7%HK$15.04HK$9.48n/a7
Nov ’25HK$11.10
HK$11.70
+5.4%
13.8%HK$15.12HK$9.52n/a8
Oct ’25HK$11.56
HK$11.77
+1.8%
13.8%HK$15.22HK$9.59n/a8
Sep ’25HK$9.69
HK$11.72
+21.0%
13.8%HK$15.15HK$9.54n/a8
Aug ’25HK$8.70
HK$11.41
+31.2%
20.5%HK$16.89HK$9.20n/a8
Jul ’25HK$9.16
HK$11.89
+29.8%
17.7%HK$16.95HK$9.50n/a8
Jun ’25HK$10.26
HK$11.67
+13.7%
18.4%HK$16.97HK$9.51n/a8
May ’25HK$10.24
HK$11.56
+12.9%
19.8%HK$16.99HK$8.60n/a8
Apr ’25HK$9.48
HK$11.44
+20.6%
21.8%HK$17.01HK$7.48n/a8
Mar ’25HK$9.33
HK$11.19
+20.0%
32.8%HK$19.80HK$7.50n/a8
Feb ’25HK$8.11
HK$13.54
+67.0%
34.0%HK$19.88HK$7.53n/a8
Jan ’25HK$13.50
HK$19.72
+46.0%
7.8%HK$23.31HK$17.57n/a8
Dec ’24HK$13.30
HK$19.29
+45.0%
7.6%HK$22.69HK$17.42HK$10.468
Nov ’24HK$12.24
HK$19.46
+59.0%
7.6%HK$22.75HK$17.46HK$11.108
Oct ’24HK$13.58
HK$19.46
+43.3%
7.6%HK$22.75HK$17.46HK$11.568
Sep ’24HK$14.06
HK$19.51
+38.8%
7.6%HK$22.82HK$17.52HK$9.698
Aug ’24HK$15.12
HK$19.13
+26.5%
8.8%HK$21.83HK$17.13HK$8.708
Jul ’24HK$13.30
HK$19.10
+43.6%
8.9%HK$22.13HK$17.37HK$9.168
Jun ’24HK$14.42
HK$19.06
+32.2%
9.6%HK$22.21HK$16.70HK$10.268
May ’24HK$15.62
HK$19.56
+25.2%
8.9%HK$22.50HK$17.24HK$10.248
Apr ’24HK$14.66
HK$18.57
+26.7%
18.7%HK$22.44HK$10.49HK$9.488
Mar ’24HK$16.06
HK$17.74
+10.5%
17.4%HK$20.75HK$10.64HK$9.338
Feb ’24HK$16.56
HK$17.74
+7.1%
17.4%HK$20.75HK$10.64HK$8.118
Jan ’24HK$16.50
HK$15.95
-3.3%
22.8%HK$20.02HK$9.75HK$13.509
Dec ’23HK$15.72
HK$15.52
-1.3%
22.2%HK$19.01HK$9.62HK$13.309

Analyst Forecast: Target price is less than 20% higher than the current share price.


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