TravelSky Technology (0696) AI Stock Analysis

• Market Cap: HK$30.73B
• Dividend Yield: 2.44%
• Average Volume (3M): 8.20M
• Price to Earnings (P/E): 13.2
• Beta (1Y): 1.35
• Revenue Growth: 12.23%
• EPS Growth: 36.90%
• Country: HK
• Employees: 6,722
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.55
• Shares Outstanding: 932,562,000
• 10 Day Avg. Volume: 7,119,383
• 30 Day Avg. Volume: 8,200,826
• PEG Ratio: 0.29
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 3.24
• P/FCF Ratio: 13.16
• 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: HK$12.80
• Price Target Upside: 24.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: HK$11.00 ▲(6.90% Upside)

The score is supported by strong profitability and a low-leverage balance sheet, but is held back by weak technical momentum (price below key moving averages, RSI ~39, slightly negative MACD) and mixed cash flow consistency. Valuation is reasonable and provides a modest support.

Positive Factors

Strong Profitability

TravelSky's robust profitability with high margins indicates effective cost management and strong pricing power, supporting long-term financial health.

Conservative Balance Sheet

A conservatively financed balance sheet with low leverage enhances financial stability and provides flexibility for future investments or downturns.

Leadership and Governance Update

The appointment of Jiang Bo as chairman may strengthen strategic oversight and governance, potentially enhancing decision-making and corporate strategy.

Negative Factors

Cash Flow Volatility

Volatile cash flow indicates potential challenges in cash management and could impact the company's ability to fund operations or growth consistently.

Revenue Base Volatility

Revenue volatility suggests sensitivity to industry cycles, which could affect long-term growth stability and predictability of earnings.

Weak Cash Conversion

Weak cash conversion from operations compared to earnings may indicate inefficiencies in working capital management, affecting liquidity.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.68B	8.82B	6.98B	5.21B	5.48B	5.49B
Gross Profit	4.39B	4.51B	6.33B	2.12B	2.16B	2.40B
EBITDA	3.29B	3.64B	2.63B	1.77B	1.46B	879.47M
Net Income	2.15B	2.07B	1.40B	627.05M	551.30M	362.80M
Balance Sheet
Total Assets	32.12B	29.69B	27.50B	25.24B	24.11B	22.77B
Cash, Cash Equivalents and Short-Term Investments	14.24B	12.77B	10.87B	10.92B	10.35B	7.71B
Total Debt	1.70B	1.45B	1.11B	374.47M	62.25M	27.35M
Total Liabilities	8.45B	6.80B	6.48B	5.50B	4.88B	4.00B
Stockholders Equity	23.08B	22.30B	20.47B	19.23B	18.76B	18.30B
Cash Flow
Free Cash Flow	1.80B	2.17B	―	1.04B	2.46B	-369.38M
Operating Cash Flow	2.55B	2.53B	137.43M	1.34B	2.94B	164.21M
Investing Cash Flow	-4.91B	893.67M	-796.24M	-142.23M	-796.76M	-311.91M
Financing Cash Flow	-581.10M	-196.81M	449.45M	-97.55M	-165.57M	-691.12M

TravelSky Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.29
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 10.29 is below the 20-day moving average (MA) of 10.54, below the 50-day MA of 10.60, and below the 200-day MA of 10.95, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 53.19 is Neutral, neither overbought nor oversold. The STOCH value of 69.57 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	64 Neutral	HK$30.73B	13.23	9.65%	2.44%	12.23%	36.90%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0354	54 Neutral	HK$14.11B	22.29	4.70%	1.06%	5.43%	-6.88%
9698	53 Neutral	HK$64.65B	72.76	5.43%	―	1.73%	―
1075	51 Neutral	HK$927.39M	43.66	1.79%	2.52%	8.90%	―
0861	44 Neutral	HK$3.98B	-15.07	-4.20%	2.65%	-6.07%	86.55%
3680	39 Underperform	HK$1.08B	348.57	4.78%	―	-25.92%	―

TravelSky Technology Corporate Events

TravelSky Extends Connected Technology Service Deal With Affiliate to 2028

TravelSky Technology has approved a three-year extension of its Service Framework Agreement with its connected company TravelSky Mobile Tech, under which TravelSky Mobile Tech will continue to provide technology development, product R&D, technical support, and operation and maintenance services from 1 January 2026 to 31 December 2028, with the possibility of two further three-year renewals if neither party objects in writing. The renewed arrangement, which qualifies as a continuing connected transaction under Hong Kong listing rules, will remain subject to reporting, annual review and announcement requirements but is exempt from independent shareholders’ approval, underpinning the company’s long-term technology support structure and clarifying compliance obligations for stakeholders as it maintains and develops services for airline and airport clients.

The most recent analyst rating on (HK:0696) stock is a Buy with a HK$14.70 price target. To see the full list of analyst forecasts on TravelSky Technology stock, see the HK:0696 Stock Forecast page.

TravelSky Updates Audit Committee Working Rules to Strengthen Governance

TravelSky Technology Limited has updated and consolidated the working rules of its Audit Committee, incorporating all amendments up to 18 December 2025. The latest revisions, approved by the board of directors on that date, formalize the committee’s composition, responsibilities, authority, information use, and procedural rules, reinforcing the company’s corporate governance framework and internal oversight processes for the benefit of shareholders and other stakeholders.

The most recent analyst rating on (HK:0696) stock is a Buy with a HK$14.70 price target. To see the full list of analyst forecasts on TravelSky Technology stock, see the HK:0696 Stock Forecast page.

TravelSky Technology Sets Out Board Line-Up and Governance Committee Structure

TravelSky Technology Limited has announced the current composition of its board of directors, naming Jiang Bo as chairman and executive director, alongside a mix of executive, non-executive, independent non-executive and employee representative directors. The company has also clarified the structure and membership of its four key board committees—Audit, Remuneration and Evaluation, Nomination, and Strategy and Investment (Legal Compliance)—in a move that underscores its corporate governance framework and delineates oversight responsibilities for financial reporting, pay, board appointments and long-term strategic planning.

The most recent analyst rating on (HK:0696) stock is a Buy with a HK$14.70 price target. To see the full list of analyst forecasts on TravelSky Technology stock, see the HK:0696 Stock Forecast page.

TravelSky Names Jiang Bo as New Chairman in Boardroom Reshuffle

TravelSky Technology has appointed Jiang Bo as chairman of the board, as well as chairman of both the Nomination Committee and the Strategy and Investment Committee (Legal Compliance Committee), effective from 18 December 2025 and continuing until the end of the current board term. Former chairman Huang Rongshun has stepped down from these chair roles but will remain an executive director, a member of the Strategy and Investment Committee and the company’s general manager, signaling a leadership reshuffle that maintains management continuity while potentially reshaping governance and strategic oversight within the group.

The most recent analyst rating on (HK:0696) stock is a Buy with a HK$14.70 price target. To see the full list of analyst forecasts on TravelSky Technology stock, see the HK:0696 Stock Forecast page.

TravelSky Shareholders Approve Appointment of New Executive Director Jiang Bo

TravelSky Technology Limited announced that shareholders approved, by poll, the appointment of Jiang Bo as an executive director at an extraordinary general meeting held on 18 December 2025, with the resolution receiving approximately 96% of votes in favour and no required abstentions. The addition of Jiang Bo to the board, with a term aligned to the current directors, signals a leadership reinforcement that may influence the company’s strategic direction and governance at a time when board composition and oversight are increasingly scrutinised by investors in China’s listed technology and infrastructure service providers.

The most recent analyst rating on (HK:0696) stock is a Buy with a HK$14.70 price target. To see the full list of analyst forecasts on TravelSky Technology stock, see the HK:0696 Stock Forecast page.

TravelSky Technology Announces Proposed Appointment of New Executive Director

TravelSky Technology Limited has announced the proposed appointment of Mr. Jiang Bo as an executive director, following the recommendation of its controlling shareholder, China TravelSky Holding Company Limited. Mr. Jiang, who has an extensive background in electronic information and computing, has been involved in leading national key R&D programs and holds several prestigious positions in the industry. This appointment is expected to strengthen TravelSky’s technological capabilities and enhance its competitive position in the market.

The most recent analyst rating on (HK:0696) stock is a Buy with a HK$14.70 price target. To see the full list of analyst forecasts on TravelSky Technology stock, see the HK:0696 Stock Forecast page.

TravelSky Technology Announces EGM to Appoint New Executive Director

TravelSky Technology Limited has announced an Extraordinary General Meeting (EGM) scheduled for December 18, 2025, in Beijing. The primary agenda of the meeting is to consider and approve the appointment of Mr. Jiang Bo as an executive director of the company. This appointment is expected to align with the terms of the current board members, potentially impacting the company’s strategic direction and governance.

The most recent analyst rating on (HK:0696) stock is a Buy with a HK$14.70 price target. To see the full list of analyst forecasts on TravelSky Technology stock, see the HK:0696 Stock Forecast page.