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696

TravelSky TechnologySEHK:696 Stock Report

Market Cap

HK$42.5b

7D

2.1%

1Y

-9.6%

Updated

27 Sep, 2021

Data

Company Financials +
696 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance4/6
Financial Health6/6
Dividends0/6

696 Overview

TravelSky Technology Limited, together with its subsidiaries, provides information technology solutions for aviation and travel industry in the People’s Republic of China.

Rewards

Earnings are forecast to grow 47.38% per year

Earnings grew by 23.3% over the past year

Risk Analysis

No risks detected for 696 from our risk checks.

Price History & Performance

Summary of all time highs, changes and price drops for TravelSky Technology
Historical stock prices
Current Share PriceHK$14.54
52 Week HighHK$12.24
52 Week LowHK$21.35
Beta0.86
1 Month Change2.68%
3 Month Change-14.87%
1 Year Change-9.58%
3 Year Change-28.55%
5 Year Change-22.50%
Change since IPO813.51%

Recent News & Updates

Shareholder Returns

696HK ITHK Market
7D2.1%-1.2%-2.4%
1Y-9.6%11.2%9.1%

Return vs Industry: 696 underperformed the Hong Kong IT industry which returned 11.2% over the past year.

Return vs Market: 696 underperformed the Hong Kong Market which returned 9.1% over the past year.

Price Volatility

Is 696's price volatile compared to industry and market?
696 volatility
696 Beta0.86
Industry Beta0.91
Market Beta1

Stable Share Price: 696 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 696's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20006,760Yinhong Xiaohttps://www.travelskyir.com

TravelSky Technology Limited, together with its subsidiaries, provides information technology solutions for aviation and travel industry in the People’s Republic of China. It primarily offers aviation information technology (AIT), distribution information technology, accounting, settlement, and clearing services. The company’s AIT services consist of electronic travel distribution services, including inventory control system, computer reservation system, and airport passenger processing system services, as well as other related information technology solutions.

TravelSky Technology Fundamentals Summary

How do TravelSky Technology's earnings and revenue compare to its market cap?
696 fundamental statistics
Market CapCN¥35.34b
Earnings (TTM)CN¥961.18m
Revenue (TTM)CN¥6.04b

36.8x

P/E Ratio

5.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
696 income statement (TTM)
RevenueCN¥6.04b
Cost of RevenueCN¥3.22b
Gross ProfitCN¥2.81b
ExpensesCN¥1.85b
EarningsCN¥961.18m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.33
Gross Margin46.61%
Net Profit Margin15.92%
Debt/Equity Ratio0%

How did 696 perform over the long term?

See historical performance and comparison

Dividends

0.1%

Current Dividend Yield

5%

Payout Ratio

Valuation

Is TravelSky Technology undervalued compared to its fair value and its price relative to the market?

36.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 696 (HK$14.54) is trading above our estimate of fair value (HK$11.14)

Significantly Below Fair Value: 696 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 696 is poor value based on its PE Ratio (36.8x) compared to the Hong Kong IT industry average (11.7x).

PE vs Market: 696 is poor value based on its PE Ratio (36.8x) compared to the Hong Kong market (9.6x).


Price to Earnings Growth Ratio

PEG Ratio: 696 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 696 is overvalued based on its PB Ratio (1.9x) compared to the HK IT industry average (1.3x).


Future Growth

How is TravelSky Technology forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

47.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 696's forecast earnings growth (47.4% per year) is above the savings rate (1.5%).

Earnings vs Market: 696's earnings (47.4% per year) are forecast to grow faster than the Hong Kong market (17.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 696's revenue (13.8% per year) is forecast to grow faster than the Hong Kong market (12.3% per year).

High Growth Revenue: 696's revenue (13.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 696's Return on Equity is forecast to be low in 3 years time (11.9%).


Past Performance

How has TravelSky Technology performed over the past 5 years?

-17.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 696 has high quality earnings.

Growing Profit Margin: 696's current net profit margins (15.9%) are higher than last year (11.9%).


Past Earnings Growth Analysis

Earnings Trend: 696's earnings have declined by 17.9% per year over the past 5 years.

Accelerating Growth: 696's earnings growth over the past year (23.3%) exceeds its 5-year average (-17.9% per year).

Earnings vs Industry: 696 earnings growth over the past year (23.3%) exceeded the IT industry 18.9%.


Return on Equity

High ROE: 696's Return on Equity (5.3%) is considered low.


Financial Health

How is TravelSky Technology's financial position?


Financial Position Analysis

Short Term Liabilities: 696's short term assets (CN¥14.6B) exceed its short term liabilities (CN¥4.6B).

Long Term Liabilities: 696's short term assets (CN¥14.6B) exceed its long term liabilities (CN¥118.0M).


Debt to Equity History and Analysis

Debt Level: 696 is debt free.

Reducing Debt: 696 has no debt compared to 5 years ago when its debt to equity ratio was 2.1%.

Debt Coverage: 696 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 696 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is TravelSky Technology current dividend yield, its reliability and sustainability?

0.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 696's dividend (0.13%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 696's dividend (0.13%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.84%).


Stability and Growth of Payments

Stable Dividend: 696 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 696 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 696 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 696's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.2yrs

Average management tenure


CEO

Yinhong Xiao (58 yo)

no data

Tenure

CN¥757,407

Compensation

Mr. Xiao Yinhong has been General Manager of TravelSky Technology Limited since August 29, 2008 and serves as its Chief Executive Officer. Mr. Xiao has nearly 20 years of management and technical support e...


CEO Compensation Analysis

Compensation vs Market: Yinhong's total compensation ($USD117.14K) is below average for companies of similar size in the Hong Kong market ($USD619.94K).

Compensation vs Earnings: Yinhong's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 696's management team is seasoned and experienced (8.2 years average tenure).


Board Members

Experienced Board: 696's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

TravelSky Technology Limited's employee growth, exchange listings and data sources


Key Information

  • Name: TravelSky Technology Limited
  • Ticker: 696
  • Exchange: SEHK
  • Founded: 2000
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: HK$42.547b
  • Shares outstanding: 2.93b
  • Website: https://www.travelskyir.com

Number of Employees


Location

  • TravelSky Technology Limited
  • TravelSky High-Tech Industrial Park
  • Houshayu Town
  • Beijing
  • 101308
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 15:34
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.