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

• Market Cap: HK$82.60M
• Dividend Yield: 4.32%
• Average Volume (3M): 315.17K
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.04
• Revenue Growth: 139.07%
• EPS Growth: 193.94%
• Country: HK
• Employees: 153
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Travel Services
• EPS (TTM): <0.01
• Shares Outstanding: 509,859,000
• 10 Day Avg. Volume: 861,000
• 30 Day Avg. Volume: 315,166
• PEG Ratio: 0.47
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.59
• 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

• Rating: 72 Outperform
• Price Target: ―

Travel Expert (Asia) Enterprises Limited demonstrates strong financial performance with significant revenue growth and improved profitability. The valuation is attractive, with a low P/E ratio and a high dividend yield, suggesting an undervalued stock with good income potential. However, technical indicators show mixed signals, with the stock trading below key moving averages and a high Stochastic suggesting caution. Overall, the company is well-positioned financially, but technical factors warrant careful monitoring.

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

Travel Expert (Asia) Enterprises Limited generates revenue through a variety of streams linked to its travel services. Primarily, the company earns income from commissions on the sale of airline tickets and hotel bookings. Additionally, it makes money by organizing and selling package tours, which often include mark-ups over the negotiated rates with service providers. The company also earns fees from ancillary services such as visa processing, travel insurance, and car rentals. Partnerships with airlines, hotels, and other travel-related service providers play a critical role in expanding its offerings and maintaining competitive pricing, thereby contributing significantly to its earnings.

Travel Expert (Asia) Enterprises Limited Financial Statement Overview

Summary

Travel Expert (Asia) Enterprises Limited has shown remarkable recovery and growth in its financial performance. The income statement reflects significant revenue and profit growth, while the balance sheet remains stable with low leverage and good equity structure. Strong cash flow generation further complements the financial health, enabling the company to fund operations and invest in growth opportunities. Overall, the company is on a positive financial trajectory with improving profitability and stability.

Income Statement

The company has demonstrated significant revenue growth, increasing from 40.27M in 2023 to 162.21M in 2024, marking a strong recovery post-pandemic. Gross profit margin is healthy at 41.8%, and net profit margin is positive at 5.57%, indicating improved profitability. The transition from a negative EBIT margin to a positive 4.12% in 2024 showcases improved operational efficiency. These metrics reflect a robust turnaround and a positive trajectory.

Balance Sheet

The company's debt-to-equity ratio is low at 0.21, indicating strong leverage management and financial stability. The return on equity is modest at 13.16%, reflecting moderate profitability for shareholders. The equity ratio is 44.8%, suggesting a balanced asset structure. The balance sheet is stable, with ample cash reserves and manageable liabilities, supporting future growth potential.

Cash Flow

Operating cash flow has improved significantly, with a strong operating cash flow to net income ratio of 3.06, indicating effective cash generation. Free cash flow growth is robust, increasing from 16.43M to 24.25M, demonstrating improved cash management. The company has a solid free cash flow to net income ratio of 2.69, highlighting efficient use of cash resources. Overall, cash flow metrics are strong, supporting financial health and operational sustainability.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	217.15M	162.21M	40.27M	10.28M	6.42M	287.16M
Gross Profit	79.87M	67.82M	19.72M	5.27M	-220.00K	135.22M
EBITDA	11.30M	13.94M	1.48M	-16.44M	-25.62M	-12.58M
Net Income	9.90M	9.03M	-2.20M	-17.92M	-32.89M	-45.31M
Balance Sheet
Total Assets	183.35M	153.22M	105.36M	89.99M	112.62M	198.93M
Cash, Cash Equivalents and Short-Term Investments	112.48M	85.17M	85.16M	75.86M	95.87M	45.75M
Total Debt	11.41M	14.68M	7.49M	9.61M	14.41M	26.96M
Total Liabilities	119.16M	84.46M	45.77M	28.83M	34.16M	87.90M
Stockholders Equity	64.02M	68.59M	59.42M	60.98M	78.28M	110.85M
Cash Flow
Free Cash Flow	37.29M	24.25M	16.43M	-9.84M	-41.50M	-64.93M
Operating Cash Flow	39.23M	27.65M	18.61M	-6.94M	-40.61M	-63.05M
Investing Cash Flow	3.24M	-21.61M	-22.66M	19.94M	79.84M	29.70M
Financing Cash Flow	-15.92M	-7.78M	-4.89M	-8.46M	-18.60M	-35.42M

Travel Expert (Asia) Enterprises Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.16
• 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 0.16 is above the 20-day moving average (MA) of 0.15, above the 50-day MA of 0.15, and above the 200-day MA of 0.15, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.75 is Neutral, neither overbought nor oversold. The STOCH value of 21.51 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	72 Outperform	HK$82.60M	24.55	5.77%	4.32%	139.07%	193.94%
Sector *	56 Neutral	HK$23.97B	4.08	-1.57%	8.88%	0.06%	-64.88%
1620		HK$74.40M	―	-174.96%	―	―	―
1701	67 Neutral	HK$120.00M	11.21	7.26%	―	128.45%	9.18%
8069	50 Neutral	HK$22.46M	―	-1.51%	―	23.13%	-226.21%
1901	48 Neutral	HK$108.99M	―	-61.77%	―	29.04%	-393.69%
8668	44 Neutral	HK$87.60M	―	-33.00%	―	10.86%	-276.19%