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

• Market Cap: HK$84.13M
• Dividend Yield: 4.71%
• Average Volume (3M): 30.00K
• Price to Earnings (P/E): 25.0
• Beta (1Y): 0.03
• Revenue Growth: 32.99%
• EPS Growth: -94.85%
• Country: HK
• Employees: 153
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Services
• EPS (TTM): >-0.01
• Shares Outstanding: 509,859,000
• 10 Day Avg. Volume: 31,500
• 30 Day Avg. Volume: 30,000
• PEG Ratio: -0.37
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 4.49
• 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: 64 Neutral
• Price Target: HK$0.18 ▲(3.53% Upside)

The overall stock score is primarily driven by strong technical indicators and stable financial performance, despite challenges in profitability and cash flow. The high P/E ratio suggests potential overvaluation, but the attractive dividend yield provides some compensation for investors.

Positive Factors

Revenue Growth

Strong revenue growth indicates a robust recovery trajectory and expanding market presence, which supports long-term business sustainability.

Stable Balance Sheet

A low debt-to-equity ratio suggests conservative leverage, providing financial stability and flexibility for future investments and growth.

Efficient Cash Conversion

Efficient cash conversion enhances liquidity and supports the company's ability to reinvest in growth opportunities and manage financial obligations.

Negative Factors

Declining Profitability Margins

Declining profitability margins indicate operational challenges, which can impact the company's ability to sustain long-term profitability and competitiveness.

Reduced Free Cash Flow Growth

A decline in free cash flow growth limits the company's ability to fund operations and invest in future growth, potentially affecting financial health.

Decreased Return on Equity

A decrease in return on equity indicates lower efficiency in generating profits from shareholders' investments, impacting investor confidence and long-term growth potential.

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

Company Description

Travel Expert (Asia) Enterprises Limited (1235) is a leading travel and tourism company specializing in providing comprehensive travel solutions across Asia. The company operates in various sectors, including leisure travel, corporate travel management, and travel technology services. Its core products and services encompass tailored travel packages, booking services, travel consultancy, and innovative travel technology platforms designed to enhance customer experience and streamline travel processes.

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 exhibits strong revenue growth and a stable balance sheet with low leverage. However, declining profitability margins and reduced free cash flow growth are concerning, indicating challenges in operational efficiency and cash flow generation.

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: Negative
• 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 0.17, below the 50-day MA of 0.17, and above the 200-day MA of 0.15, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.10 is Neutral, neither overbought nor oversold. The STOCH value of 41.27 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
1235	64 Neutral	HK$84.13M	25.00	5.77%	4.71%	32.99%	-94.85%
1701	62 Neutral	HK$107.00M	3.95	16.79%	―	80.68%	131.62%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8668	51 Neutral	HK$109.20M	-23.95	-18.19%	―	1.28%	60.00%
8069	50 Neutral	HK$29.40M	-21.18	-7.99%	―	-17.40%	51.54%
1901	45 Neutral	HK$319.49M	―	-29.79%	―	68.29%	41.90%
1620	39 Underperform	HK$129.60M	-4.56	-574.47%	―	-19.12%	-7.24%

Travel Expert (Asia) Enterprises Limited Corporate Events

Travel Expert (Asia) Issues Profit Warning Amid Rising Costs and Market Challenges

Travel Expert (Asia) Enterprises Limited has issued a profit warning, indicating an expected loss of up to HK$0.5 million for the six months ending September 2025, compared to a profit of HK$3.0 million for the same period in 2024. This downturn is attributed to increased rental and staff costs due to business expansion, higher consultancy fees for back-office projects, and decreased revenue from travel products following negative market sentiment due to earthquake rumors in Japan. The company remains committed to expanding its business channels and enhancing its brand image.

Travel Expert (Asia) Enterprises Schedules Board Meeting for Interim Results

Travel Expert (Asia) Enterprises Limited has announced a board meeting scheduled for November 27, 2025, to approve the interim results for the six months ending September 30, 2025, and to consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market position and stakeholder interests.

Travel Expert (Asia) Enterprises Limited Successfully Passes All AGM Resolutions

Travel Expert (Asia) Enterprises Limited announced that all resolutions proposed at its Annual General Meeting on August 20, 2025, were successfully passed by shareholders. The resolutions included the approval of audited financial statements, declaration of a final dividend, re-election of directors, re-appointment of the auditor, and granting of mandates to the directors for share repurchase and issuance. This successful AGM outcome reinforces the company’s operational stability and shareholder confidence, potentially strengthening its position in the travel industry.

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.