SEHK:696

Stock Analysis Report

TravelSky Technology

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with questionable track record.


Similar Companies

Share Price & News

How has TravelSky Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.7%

696

0.5%

HK IT

2.2%

HK Market


1 Year Return

-3.1%

696

-0.6%

HK IT

-1.3%

HK Market

Return vs Industry: 696 underperformed the Hong Kong IT industry which returned -0.6% over the past year.

Return vs Market: 696 underperformed the Hong Kong Market which returned -1.3% over the past year.


Shareholder returns

696IndustryMarket
7 Day1.7%0.5%2.2%
30 Day1.1%-0.9%-2.9%
90 Day2.9%-7.5%-5.8%
1 Year-1.2%-3.1%1.2%-0.6%2.3%-1.3%
3 Year2.3%-2.1%-13.3%-17.6%15.6%3.9%
5 Year126.2%110.9%40.4%24.7%20.1%0.06%

Price Volatility Vs. Market

How volatile is TravelSky Technology's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

0.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 696 (HK$17.08) is trading below our estimate of fair value (HK$17.2)

Significantly Undervalued: 696 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 696 is poor value based on its PE Ratio (18.8x) compared to the IT industry average (11.1x).

PE vs Market: 696 is poor value based on its PE Ratio (18.8x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 696 is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: 696 is overvalued based on its PB Ratio (2.6x) compared to the HK IT industry average (1x).


Next Steps

Future Growth

How is TravelSky Technology forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 696's forecast earnings growth (12.3% per year) is above the savings rate (2%).

Earnings vs Market: 696's earnings (12.3% per year) are forecast to grow faster than the Hong Kong market (11.2% per year).

High Growth Earnings: 696's earnings are forecast to grow, but not significantly.

Revenue vs Market: 696's revenue (9.7% per year) is forecast to grow slower than the Hong Kong market (10.1% per year).

High Growth Revenue: 696's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 696's Return on Equity is forecast to be low in 3 years time (14.5%).


Next Steps

Past Performance

How has TravelSky Technology performed over the past 5 years?

7.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 696's earnings have grown by 7.9% per year over the past 5 years.

Accelerating Growth: 696's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 696 had negative earnings growth (-0.2%) over the past year, making it difficult to compare to the IT industry average (-3.7%).


Return on Equity

High ROE: 696's Return on Equity (13.5%) is considered low.


Return on Assets

ROA vs Industry: 696 has a higher Return on Assets than the IT industry average last year.


Return on Capital Employed

ROCE Improving: 696's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is TravelSky Technology's financial position?


Financial Position Analysis

Short Term Liabilities: 696's short term assets (CN¥15.0B) exceeds its short term liabilities (CN¥4.9B)

Long Term Liabilities: 696's short term assets (15.0B) exceeds its long term liabilities (248.7M)


Debt to Equity History and Analysis

Debt Level: 696 is debt free.

Reducing Debt: 696 had no debt 5 years ago.

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

Inventory Level: 696 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 696's debt is covered by short term assets.


Next Steps

Dividend

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

1.74%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%2.3%markettop25%6.3%industryaverage2.0%forecastin3Years2.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 696's dividend (1.74%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 696's dividend (1.74%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).

Stable Dividend: Whilst dividend payments have been stable, 696 has been paying a dividend for less than 10 years.

Growing Dividend: 696's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.8%), 696's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 696's dividends in 3 years are forecast to be well covered by earnings (34% payout ratio).


Next Steps

Management

What is the CEO of TravelSky Technology's salary, the management and board of directors tenure and is there insider trading?

10.8yrs

Average management tenure


CEO

Yinhong Xiao (56yo)

0yrs

Tenure

CN¥844,000

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 ($USD119.07K) is about average for companies of similar size in the Hong Kong market ($USD608.87K).

Compensation vs Earnings: Yinhong's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

10.8yrs

Average Tenure

56yo

Average Age

Experienced Management: 696's management team is seasoned and experienced (10.8 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

57yo

Average Age

Experienced Board: 696's board of directors are considered experienced (3.7 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.


Recent Insider Transactions

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Ownership Breakdown


Management Team

  • Yinhong Xiao (56yo)

    CEO, GM & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥844.00k
  • Gang Rong (57yo)

    Vice General Manager

    • Tenure: 10.8yrs
    • Compensation: CN¥281.00k
  • Xiaoxing Zhu (55yo)

    Vice General Manager

    • Tenure: 11.2yrs
    • Compensation: CN¥546.00k
  • Zhixiong Cui (59yo)

    Chairman of the Board

    • Tenure: 3.6yrs
    • Compensation: CN¥845.00k
  • Wei Wang (59yo)

    Vice General Manager

    • Tenure: 10.8yrs
  • Xiaochun Yu (51yo)

    Company Secretary

    • Tenure: 6.6yrs
  • Jinsong Li (49yo)

    CFO & Vice GM

    • Tenure: 2.9yrs

Board Members

  • Maurice Ngai (57yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥102.00k
  • Yinhong Xiao (56yo)

    CEO, GM & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥844.00k
  • Yuanchang Huang (56yo)

    Chairperson of Supervisory Committee

    • Tenure: 4.6yrs
  • Geping Rao (71yo)

    Independent Supervisor

    • Tenure: 15.8yrs
    • Compensation: CN¥60.00k
  • Xiaohang Zhao (57yo)

    Non-Executive Director

    • Tenure: 0.3yrs
  • Zhixiong Cui (59yo)

    Chairman of the Board

    • Tenure: 3.6yrs
    • Compensation: CN¥845.00k
  • Xiangqun Liu (65yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: CN¥60.00k
  • Sheng Xi (56yo)

    Non-Executive Director

    • Tenure: 0.08yrs
  • Shiqing Cao (65yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥60.00k
  • Wensheng Han (52yo)

    Non-Executive Director

    • Tenure: 1.2yrs

Company Information

TravelSky Technology Limited's company bio, 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$49.043b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TSYH.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDFeb 2001
696SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDFeb 2001
TVLDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURFeb 2001
696SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDFeb 2001
696SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDFeb 2001
TSYH.YOTCPK (Pink Sheets LLC)SPON ADR H SHSUSUSDJan 2003

Biography

TravelSky Technology Limited provides information technology solutions for aviation and travel industry in the People’s Republic of China. It primarily offers aviation information technology (AIT), distrib ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:34
End of Day Share Price2019/10/14 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.