Travel Expert (Asia) Enterprises Limited (1235) AI Stock Analysis

• Market Cap: HK$85.66M
• Dividend Yield: 4.17%
• Average Volume (3M): 110.33K
• Price to Earnings (P/E): 25.5
• Beta (1Y): 0.01
• Revenue Growth: 57.36%
• EPS Growth: -62.71%
• Country: HK
• Employees: 153
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Travel Services
• EPS (TTM): <0.01
• Shares Outstanding: 509,859,000
• 10 Day Avg. Volume: 76,500
• 30 Day Avg. Volume: 110,333
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Hold
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The stock's overall score is primarily driven by its strong revenue growth and stable balance sheet, despite challenges in profitability and cash flow. Technical indicators suggest mixed signals with a positive short-term trend but potential bearish momentum. The valuation is moderate, with an attractive dividend yield. The absence of recent earnings call data and corporate events limits further insights.

Travel Expert (Asia) Enterprises Limited Business Overview & Revenue Model

Company Description

Travel Expert (Asia) Enterprises Limited, an investment holding company, provides travel agency services in Hong Kong and the People's Republic of China. It operates through Travel and Travel/Wedding Related Business, Food and Beverage Business, Treasury Activities, and Others segments. The company engages in the provision of services relating to the sale of air tickets, hotel accommodation, and other travel/wedding related products and services; and package tours, property investments, and investment in treasury activities, as well as sells frozen food and groceries through teSTORE and online. It also provides marketing and management services. As of March 31, 2022, it operated a total of 5 retail shops in Hong Kong under the Travel Expert and Premium Holidays brands; and a café under the brand name of Café Another brand. The company was founded in 1986 and is headquartered in Sheung Wan, Hong Kong. Travel Expert (Asia) Enterprises Limited is a subsidiary of Colvin & Horne Holdings Limited.

How the Company Makes Money

The company generates revenue primarily through multiple streams, including commission-based income from travel bookings, service fees for customized travel packages, and subscription fees for its technology platforms used by travel agents and corporate clients. Additionally, Travel Expert (Asia) Enterprises Limited has established partnerships with airlines, hotels, and tour operators, allowing them to earn commissions on sales made through these partnerships. The company also benefits from seasonal promotions and travel trends, which drive higher booking volumes during peak travel periods, further contributing to its earnings.

Travel Expert (Asia) Enterprises Limited Financial Statement Overview

Summary

The company shows strong revenue growth and a stable balance sheet with low leverage. However, declining profitability margins and reduced free cash flow growth present challenges. The company is on a recovery path but needs to address operational efficiency and cash flow generation to sustain long-term growth.

Income Statement

The company has shown a significant revenue growth rate of 17.54% in the latest year, indicating a strong recovery trajectory. However, the gross profit margin has decreased from 41.81% to 33.69%, and the net profit margin is relatively low at 1.32%. The EBIT and EBITDA margins are modest, reflecting operational challenges. Overall, the income statement shows positive growth but with declining profitability margins.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.165, indicating conservative leverage. The return on equity has decreased to 5.19%, suggesting reduced profitability on shareholders' investments. The equity ratio is healthy, showing a strong equity base relative to total assets. Overall, the balance sheet is stable with low leverage but declining returns.

Cash Flow

The cash flow statement shows a significant decline in free cash flow growth by 52.79%, which is concerning. The operating cash flow to net income ratio is 0.217, indicating limited cash generation relative to net income. The free cash flow to net income ratio is strong at 0.873, suggesting efficient cash conversion. Overall, the cash flow position is weakened by declining free cash flow growth, despite efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	217.15M	255.24M	162.21M	40.27M	10.28M	6.42M
Gross Profit	79.87M	86.00M	67.82M	19.72M	5.27M	-220.00K
EBITDA	11.30M	14.41M	13.94M	1.48M	-16.44M	-25.62M
Net Income	9.90M	3.37M	9.03M	-2.20M	-17.92M	-32.89M
Balance Sheet
Total Assets	183.35M	161.85M	153.22M	105.36M	89.99M	112.62M
Cash, Cash Equivalents and Short-Term Investments	112.48M	90.65M	85.17M	85.16M	75.86M	95.87M
Total Debt	11.41M	10.72M	14.68M	7.49M	9.61M	14.41M
Total Liabilities	119.16M	96.68M	84.46M	45.77M	28.83M	34.16M
Stockholders Equity	64.02M	65.00M	68.59M	59.42M	60.98M	78.28M
Cash Flow
Free Cash Flow	37.29M	17.61M	24.25M	16.43M	-9.84M	-41.50M
Operating Cash Flow	39.23M	20.17M	27.65M	18.61M	-6.94M	-40.61M
Investing Cash Flow	1.63M	36.45M	-21.61M	-22.66M	19.94M	79.84M
Financing Cash Flow	-15.51M	-15.54M	-7.78M	-4.89M	-8.46M	-18.60M

Travel Expert (Asia) Enterprises Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1235, the sentiment is Positive. The current price of 0.17 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.16, and above the 200-day MA of 0.15, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.55 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1235.

Travel Expert (Asia) Enterprises Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1701	72 Outperform	HK$137.00M	5.06	16.79%	―	80.68%	131.62%
Sector *	61 Neutral	$17.99B	12.87	-3.58%	2.97%	1.27%	-14.28%
1235	59 Neutral	HK$85.66M	25.45	5.77%	4.17%	57.36%	-62.71%
1620	―	HK$178.80M	―	-174.96%	―	―	―
1901	53 Neutral	HK$329.47M	―	-29.79%	―	68.29%	41.90%
8069	50 Neutral	HK$30.22M	―	-1.51%	―	-8.32%	84.82%
8668	46 Neutral	HK$99.60M	―	-18.19%	―	1.28%	60.00%

Travel Expert (Asia) Enterprises Limited Corporate Events

Travel Expert (Asia) Enterprises Limited Announces 2025 Annual General Meeting

Travel Expert (Asia) Enterprises Limited has announced its upcoming annual general meeting scheduled for August 20, 2025, in Hong Kong. Key agenda items include the consideration of audited financial statements, a proposed final dividend, re-election of directors, and the re-appointment of BDO Limited as auditors. Additionally, resolutions will be proposed to authorize the company’s directors to repurchase shares and issue additional shares, potentially impacting the company’s market operations and shareholder value.

Travel Expert (Asia) Enterprises Limited Establishes Nomination Committee Guidelines

Travel Expert (Asia) Enterprises Limited has outlined the terms of reference for its Nomination Committee, emphasizing the importance of independent non-executive directors in its composition. The committee is tasked with reviewing the board’s structure and composition to align with the company’s corporate strategy, which may impact the company’s governance and strategic direction.

Travel Expert (Asia) Reports Strong Revenue Growth Amid Profit Decline

Travel Expert (Asia) Enterprises Limited reported a significant increase in its financial performance for the year ended March 31, 2025, with total customer sales proceeds rising by 22.3% to HK$576.3 million and revenue from continuing operations increasing by 62.4% to HK$255.2 million. Despite these gains, the company’s profit before income tax decreased to HK$4.6 million, and earnings per share dropped to HK0.7 cents. The company announced a final dividend of HK0.8 cents per share, reflecting its ongoing commitment to shareholder returns. The changes in the composition of the nomination committee were also noted, which may impact the company’s governance and strategic direction.

Travel Expert (Asia) Enterprises Announces Final Dividend for FY2025

Travel Expert (Asia) Enterprises Limited announced a final dividend of HKD 0.008 per share for the financial year ending March 31, 2025. This decision reflects the company’s financial performance and commitment to shareholder returns, with key dates for shareholders including an ex-dividend date of September 8, 2025, and a payment date of September 26, 2025.

Travel Expert (Asia) Announces Board Composition and Roles

Travel Expert (Asia) Enterprises Limited announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement provides clarity on the leadership structure, potentially impacting the company’s strategic direction and governance, which is crucial for stakeholders and investors.

Travel Expert (Asia) Schedules Board Meeting for Fiscal Year Results

Travel Expert (Asia) Enterprises Limited has announced that its board of directors will meet on June 26, 2025, to approve and publish the final results for the fiscal year ending March 31, 2025. The meeting will also consider the recommendation of a final dividend, which could impact the company’s financial outlook and shareholder returns.

Travel Expert (Asia) Announces Key Leadership Change

Travel Expert (Asia) Enterprises Limited has announced a change in its company secretary and authorized representative roles. Ms. Cheng Yin Wah has resigned from both positions, effective June 13, 2025, and Ms. Chan Wing Ting, with over a decade of experience in corporate governance and compliance, has been appointed as her successor. This transition is expected to maintain the company’s compliance and governance standards, with no disagreements reported between Ms. Cheng and the company.