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 Analysis

Flawless balance sheet with solid track record and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 696's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.3%

696

-0.6%

HK IT

0.2%

HK Market


1 Year Return

-32.4%

696

-31.4%

HK IT

-22.0%

HK Market

Return vs Industry: 696 matched the Hong Kong IT industry which returned -30.7% over the past year.

Return vs Market: 696 underperformed the Hong Kong Market which returned -20.4% over the past year.


Shareholder returns

696IndustryMarket
7 Day-4.3%-0.6%0.2%
30 Day-19.5%-13.6%-10.8%
90 Day-29.5%-20.9%-16.5%
1 Year-31.1%-32.4%-30.1%-31.4%-19.1%-22.0%
3 Year-31.1%-34.1%-33.1%-36.2%-3.7%-13.4%
5 Year7.7%0.5%-20.2%-28.4%-15.2%-28.8%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 696 (HK$13.64) is trading below our estimate of fair value (HK$30.23)

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


Price To Earnings Ratio

PE vs Industry: 696 is poor value based on its PE Ratio (14.3x) compared to the IT industry average (13.7x).

PE vs Market: 696 is poor value based on its PE Ratio (14.3x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 696 is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: 696 is overvalued based on its PB Ratio (1.9x) compared to the HK IT industry average (0.9x).


Next Steps

Future Growth

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

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 696's forecast earnings growth (10.2% per year) is above the savings rate (1.6%).

Earnings vs Market: 696's earnings (10.2% per year) are forecast to grow slower than the Hong Kong market (11.8% per year).

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

Revenue vs Market: 696's revenue (8.4% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 696's revenue (8.4% 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 (13.7%).


Next Steps

Past Performance

How has TravelSky Technology performed over the past 5 years?

7.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 696 has high quality earnings.

Growing Profit Margin: 696's current net profit margins (31.3%) are higher than last year (31.1%).


Past Earnings Growth Analysis

Earnings Trend: 696's earnings have grown by 7.1% per year over the past 5 years.

Accelerating Growth: 696's earnings growth over the past year (9.4%) exceeds its 5-year average (7.1% per year).

Earnings vs Industry: 696 earnings growth over the past year (9.4%) exceeded the IT industry -8.4%.


Return on Equity

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


Next Steps

Financial Health

How is TravelSky Technology's financial position?


Financial Position Analysis

Short Term Liabilities: 696's short term assets (CN¥14.1B) exceed its short term liabilities (CN¥4.2B).

Long Term Liabilities: 696's short term assets (CN¥14.1B) exceed its long term liabilities (CN¥212.3M).


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?

2.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 696's dividend (2.32%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.56%).

High Dividend: 696's dividend (2.32%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.14%).


Stability and Growth of Payments

Stable Dividend: 696's dividends per share have been stable in the past 10 years.

Growing Dividend: 696's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.3%), 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 (31.7% payout ratio).


Next Steps

Management

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

9.2yrs

Average management tenure


CEO

Yinhong Xiao (56yo)

no data

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 ($USD119.18K) is below average for companies of similar size in the Hong Kong market ($USD691.67K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Zhixiong Cui
Chairman of the Board4.08yrsCN¥845.00kno data
Yinhong Xiao
CEO, GM & Executive Directorno dataCN¥844.00kno data
Jinsong Li
CFO & Vice GM3.42yrsno datano data
Yuanchang Huang
Vice General Manager0.25yrno datano data
Gang Rong
Vice General Manager11.33yrsCN¥281.00kno data
Xiaoxing Zhu
Vice General Manager11.67yrsCN¥546.00kno data
Wei Wang
Vice General Manager11.33yrsno datano data
Xiaochun Yu
Company Secretary7.08yrsno datano data

9.2yrs

Average Tenure

56yo

Average Age

Experienced Management: 696's management team is seasoned and experienced (9.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Zhixiong Cui
Chairman of the Board4.08yrsCN¥845.00kno data
Yinhong Xiao
CEO, GM & Executive Directorno dataCN¥844.00kno data
Wai Fung Ngai
Independent Non-Executive Director4.25yrsCN¥102.00kno data
Xiaohang Zhao
Non-Executive Director0.83yrno datano data
Yiwei Zeng
Shareholder Representative Supervisor10.08yrsno datano data
Xiangqun Liu
Independent Non-Executive Director3.5yrsCN¥60.00kno data
Sheng Xi
Non-Executive Director0.58yrno datano data
Shiqing Cao
Independent Non-Executive Director4.25yrsCN¥60.00kno data
Laijun Luo
Non Executive Director0.17yrno datano data
Wanzhi Ding
Chairman of the Supervisory Committee0.17yrno datano data

3.8yrs

Average Tenure

57yo

Average Age

Experienced Board: 696's board of directors are considered experienced (3.8 years average tenure).


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 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$38.977b
  • 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), distribution information technology, clearing, and accounting and settlement 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. It also provides cargo management services, and sells and installs related information systems; computer hardware and software development, and data network services; and Internet exchange platform services. In addition, the company is involved in the research, development, marketing, and sale of travel distribution software to travel industry. TravelSky Technology Limited was incorporated in 2000 and is based in Beijing, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 12:36
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.