TravelSky Technology (0696) AI Stock Analysis

• Market Cap: $32.77B
• Dividend Yield: 1.57%
• Average Volume (3M): 5.49M
• Price to Earnings (P/E): 14.6
• Beta (1Y): 1.31
• Revenue Growth: 24.17%
• EPS Growth: 43.01%
• Country: HK
• Employees: 6,722
• Sector: Technology
• Sector Strength: 78
• Industry: Information Technology Services
• EPS (TTM): 0.26
• Shares Outstanding: 932,562,000
• 10 Day Avg. Volume: 10,248,094
• 30 Day Avg. Volume: 5,485,797
• PEG Ratio: 6.46
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 40.93
• 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: $10.91
• Price Target Upside: -2.59% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: ―

TravelSky Technology scores well due to its strong financial performance, characterized by robust revenue growth, profitability, and efficient cash management. However, the technical analysis reveals a lack of strong momentum, and the valuation indicates fair pricing relative to earnings. The stock's overall score reflects these strengths, tempered by neutral technical signals.

TravelSky Technology Business Overview & Revenue Model

Company Description

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. It also provides cargo management services, as well as sells and installs related information systems; computer hardware and software development, and data network services; and computer system engineering design and installation services. In addition, the company engages in technology development, support, and transfer services; sales of computers, software, and auxiliary equipment; contracting of computer software and hardware engineering projects; technical consultation and service; system integration; real estate development and sales; self-developed commercial housing contracting; labor service subcontracting; freight management services; and trade financing services. TravelSky Technology Limited was founded in 1979 and is based in Beijing, the People's Republic of China.

How the Company Makes Money

TravelSky Technology generates revenue primarily by providing IT solutions and services to airlines, airports, and travel agencies. Its core revenue streams include fees from electronic travel distribution services, which facilitate ticket sales and reservations for airlines. Additionally, the company earns money from its airport passenger processing systems through service fees for managing passenger check-in and boarding processes. TravelSky also offers air cargo management solutions, contributing to its revenue. The company has established significant partnerships with major Chinese airlines and travel agencies, which bolster its market presence and financial performance.

TravelSky Technology Financial Statement Overview

Summary

TravelSky Technology presents a robust financial profile with strong revenue growth and profitability. The balance sheet is solid with low leverage and high equity, while cash flows are healthy, reflecting effective cash management. There is potential to further boost returns on equity.

Income Statement

TravelSky Technology's income statement reflects strong financial performance with a significant improvement in revenue and profitability. The company achieved a gross profit margin of approximately 51.2% and a net profit margin of 23.5% for 2024. Revenue grew by 26.3% from 2023 to 2024, showcasing robust growth. The EBIT margin stands at 27.2%, and the EBITDA margin at 37.1%, indicating efficient operational performance. Overall, the company demonstrates a strong trajectory in revenue growth and profitability.

Balance Sheet

The balance sheet of TravelSky Technology displays a strong equity position with a debt-to-equity ratio of 0.065, indicating low leverage. The return on equity is 9.3%, reflecting a moderate return on shareholders' investments. The equity ratio is 75.1%, underscoring financial stability with a significant portion of assets funded by equity. While the company maintains a strong balance sheet, there is room for improving returns on equity.

Cash Flow

Cash flow analysis shows healthy cash generation with a positive free cash flow of approximately 1.98 billion CNY in 2024. The operating cash flow to net income ratio is 1.22, and the free cash flow to net income ratio is 0.95, highlighting efficient cash conversion. There is an impressive growth in free cash flow from 2023 to 2024, indicating enhanced cash management. Overall, the company exhibits strong cash flow performance with effective operational cash generation.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.82B	6.98B	5.21B	5.48B	5.49B
	Gross Profit
4.51B	6.33B	2.12B	2.16B	2.40B
	EBIT
2.40B	1.60B	328.84M	525.33M	-62.29M
	EBITDA
3.64B	2.63B	1.77B	1.46B	1.26B
	Net Income Common Stockholders
2.07B	1.40B	627.05M	551.30M	362.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.77B	10.87B	10.92B	10.35B	7.71B
	Total Assets
29.69B	27.50B	25.24B	24.11B	22.77B
	Total Debt
1.45B	1.11B	300.23M	62.25M	27.35M
	Net Debt
-9.10B	-6.26B	-7.28B	-6.40B	-4.43B
	Total Liabilities
6.80B	6.48B	5.50B	4.88B	4.00B
	Stockholders Equity
22.30B	20.47B	19.23B	18.76B	18.30B
Cash Flow		Free Cash Flow
2.17B	―	1.04B	2.46B	-369.38M
	Operating Cash Flow
2.53B	137.43M	1.34B	2.94B	164.21M
	Investing Cash Flow
893.67M	-796.24M	-142.23M	-796.76M	-311.91M
	Financing Cash Flow
―	449.45M	-97.55M	-165.57M	-691.12M

TravelSky Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.20
• 50DMA: Positive
• 100DMA: Positive
• 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:0696, the sentiment is Positive. The current price of 11.2 is below the 20-day moving average (MA) of 11.22, above the 50-day MA of 11.11, and above the 200-day MA of 10.56, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 50.91 is Neutral, neither overbought nor oversold. The STOCH value of 37.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0696.

TravelSky Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0696	74 Outperform	$32.77B	14.57	9.69%	1.57%	24.17%	43.01%
Sector *	62 Neutral	$11.80B	10.08	-7.46%	2.99%	7.37%	-8.21%
CFTLF		$1.73B	22.79	4.43%	1.08%	―	―
DCHIF		$630.12M	―	-4.20%	0.70%	―	―
G401		€4.35B	―	0.84%	―	―	―
CF90		€68.69M	―	-1.19%	―	―	―
3680	39 Underperform	HK$775.05M	―	-127.76%	―	1.50%	43.09%

TravelSky Technology Corporate Events

TravelSky Technology Secures New Data Center Contracts with CTCD

TravelSky Technology has announced new agreements with CTCD for leasing data center racks and ancillary services at the Jiaxing Data Center, effective from May 2025 to April 2028. These contracts replace previous agreements and are classified as continuing connected transactions under the Listing Rules, requiring reporting and annual review but exempt from independent shareholders’ approval due to the applicable percentage ratios.

TravelSky Technology Announces Strong 2024 Financial Results and Dividend Policy Adjustment

TravelSky Technology Limited reported a significant financial performance for the year ended December 31, 2024, with a total revenue of approximately RMB8,823.0 million, marking a 26.3% increase from the previous year. The net profit attributable to shareholders rose by 48.3% to RMB2,074.3 million. The company announced a proposed adjustment to its dividend policy, increasing the payout range from 30%-40% to 35%-45% of the net profit. This strategic move, alongside the recommendation of a final cash dividend of RMB0.239 per share, reflects the company’s robust financial health and commitment to enhancing shareholder value.

TravelSky Technology Declares Final Dividend for 2024

TravelSky Technology Limited has announced a final cash dividend of RMB 0.239 per share for the financial year ending December 31, 2024. This announcement reflects the company’s ongoing commitment to returning value to its shareholders, although specific details regarding the payment date and other related information are yet to be disclosed. The dividend declaration could potentially impact the company’s financial standing and shareholder relations positively.

TravelSky Technology Announces Upcoming Board Meeting to Review Annual Results

TravelSky Technology Limited has announced that its board of directors will meet on March 27, 2025, to consider and approve the company’s annual results for the year ending December 31, 2024, and discuss dividend distribution. This meeting is significant as it will provide insights into the company’s financial health and future strategies, potentially impacting stakeholders and market positioning.

TravelSky Technology Projects Strong Profit Growth for 2024

TravelSky Technology Limited has issued a profit warning for the year 2024, expecting a significant increase in net profit of at least 41.4% compared to the previous year. This anticipated growth is largely due to a rise in revenue from its aviation information technology services and system integration services, driven by the resumption and expansion of China’s civil aviation industry and airport construction projects. The company is in the process of finalizing its financial results, which may be subject to adjustments, and advises investors to exercise caution.