Orient Victory Travel Group Company Limited (0265) AI Stock Analysis

• Market Cap: HK$439.35M
• Dividend Yield: N/A
• Average Volume (3M): 48.49K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.44
• Revenue Growth: 2.10%
• EPS Growth: 1.68%
• Country: HK
• Employees: 2,100
• Sector: Real Estate
• Sector Strength: 53
• Industry: Travel Services
• EPS (TTM): 0.05
• Shares Outstanding: 258,441,500
• 10 Day Avg. Volume: 104,920
• 30 Day Avg. Volume: 48,494
• PEG Ratio: 0.22
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 31.14
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: HK$2.00 ▲(5.26% Upside)

The overall stock score reflects a moderate financial performance with significant recovery in profitability and cash flows, offset by increased leverage and cash flow volatility. Technical indicators suggest weak momentum, while the valuation is reasonable but lacks a dividend yield.

Positive Factors

Revenue and profitability recovery

Sustained recovery in top-line and margins indicates stronger demand and improved pricing or cost control, which supports durable earnings power. Over 2–6 months this underpins reinvestment capacity, creditworthiness and the ability to convert operating performance into shareholder returns.

Return to positive operating and free cash flow

Re-establishing positive operating and free cash flow enhances financial flexibility and funds capital expenditure, working capital and debt servicing without relying on external financing. This structural cash generation reduces refinancing risk and supports sustainable business operations.

Improved return on equity

Rising ROE signals management is allocating capital more effectively, translating profits into shareholder value. If sustained, this metric supports long-term competitive positioning by enabling reinvestment, strategic initiatives and stronger stakeholder confidence.

Negative Factors

Rising leverage / higher debt-to-equity

An increasing debt-to-equity ratio raises financial risk and interest burden, reducing flexibility to invest or weather demand shocks. Given a travel firm's cyclical revenues, higher leverage can amplify downturn impacts and constrain strategic options over the medium term.

Volatility in cash flows

Irregular operating and free cash flows impair planning and make debt servicing and capex timing uncertain. For a services business dependent on bookings, sustained volatility can force precautionary liquidity measures, raising funding costs and limiting growth initiatives.

Historical EBIT/EBITDA margin weakness

Past negative operating margins point to structural cost or scale inefficiencies. Even with recent margin gains, underlying operational weaknesses could resurface under cost pressure or slower demand, threatening long-term margin sustainability and cash conversion.

Orient Victory Travel Group Company Limited Business Overview & Revenue Model

Company Description

Orient Victory Smart Urban Services Holding Limited, an investment holding company, provides property management and leasing services for residential and commercial properties in Hong Kong and Mainland China. The company operates through Diversified Tourism Products and Services, Integrated Development, and Property Management segments. It also sells air tickets and other tourism products, as well as offers travel related and other services primarily to corporate clients. In addition, the company develops and operates tourism and cultural attractions; and sells products. Further, it provides property development and ecological environment engineering services. The company was formerly known as Orient Victory Travel Group Company Limited and changed its name to Orient Victory Smart Urban Services Holding Limited in August 2022. The company was founded in 1999 and is based in Admiralty, Hong Kong. Orient Victory Smart Urban Services Holding Limited is a subsidiary of Orient Victory Real Estate Group Holdings Limited.

How the Company Makes Money

Orient Victory Travel Group generates revenue primarily through the sale of travel packages and services. Key revenue streams include commissions from airline ticket sales, hotel bookings, and tour packages. The company also earns income from corporate travel management services, providing tailored travel solutions for businesses. Additionally, strategic partnerships with airlines, hotels, and other travel service providers enhance its service offerings and contribute to earnings. Seasonal promotions and targeted marketing campaigns help drive customer acquisition and retention, further supporting the company's financial performance.

Orient Victory Travel Group Company Limited Financial Statement Overview

Summary

The company has shown significant recovery in revenue and profitability, with improved margins and a return to positive cash flows. However, increased leverage and cash flow volatility pose risks that need careful management.

Income Statement

The company has shown consistent revenue growth over the past few years, with a notable improvement in profitability metrics. The gross profit margin has increased, indicating better cost control and operational efficiency. The net profit margin has improved significantly, reflecting a strong recovery in profitability. However, historical losses in EBIT and EBITDA margins highlight challenges in operational efficiency, although recent improvements are promising.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, which has increased in the latest period, suggesting a rise in leverage. The return on equity has improved, indicating effective use of shareholder funds. However, the equity ratio has decreased, reflecting a decline in the proportion of equity financing. The company needs to manage its leverage carefully to maintain financial stability.

Cash Flow

The cash flow statement shows a return to positive operating cash flow, improving from previous deficits. Free cash flow has also turned positive, enhancing financial flexibility. However, the volatility in cash flows over the years indicates some instability in cash management, which could pose risks if not addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	347.55M	345.91M	342.37M	226.97M	128.35M	162.43M
Gross Profit	95.44M	97.26M	85.18M	68.48M	38.78M	30.85M
EBITDA	83.47M	79.65M	74.83M	40.33M	-9.50M	-38.32M
Net Income	34.96M	30.13M	33.50M	29.82M	-22.55M	-2.07M
Balance Sheet
Total Assets	637.62M	630.64M	814.74M	811.82M	892.42M	850.39M
Cash, Cash Equivalents and Short-Term Investments	110.35M	86.35M	272.16M	205.86M	259.98M	193.86M
Total Debt	42.31M	46.36M	49.22M	54.84M	72.30M	2.17M
Total Liabilities	177.40M	197.09M	192.60M	205.54M	246.43M	147.83M
Stockholders Equity	434.07M	407.54M	594.82M	589.16M	623.37M	624.82M
Cash Flow
Free Cash Flow	-51.45M	9.54M	-45.55M	-23.94M	58.82M	24.58M
Operating Cash Flow	-49.36M	11.63M	-36.78M	42.67M	76.53M	44.77M
Investing Cash Flow	7.45M	3.55M	63.53M	-42.64M	1.50M	289.67M
Financing Cash Flow	-204.28M	-234.45M	-21.07M	-30.08M	-9.61M	-280.67M

Orient Victory Travel Group Company Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0265, the sentiment is Negative. The current price of 1.9 is above the 20-day moving average (MA) of 1.82, above the 50-day MA of 1.78, and above the 200-day MA of 1.36, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 40.63 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0265.

Orient Victory Travel Group Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
1701	64 Neutral	HK$106.00M	3.91	16.79%	―	80.68%	131.62%
6882	64 Neutral	HK$246.20M	5.81	54.71%	12.00%	-1.27%	-50.18%
0265	63 Neutral	HK$439.35M	13.38	12.44%	―	2.10%	1.68%
1235	55 Neutral	HK$86.68M	170.00	0.79%	4.55%	32.99%	-94.85%
8668	51 Neutral	HK$120.00M	-26.32	-18.19%	―	1.28%	60.00%
1901	46 Neutral	HK$409.34M	-15.24	-29.79%	―	68.29%	41.90%