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

• Market Cap: HK$91.77M
• Dividend Yield: 4.55%
• Average Volume (3M): 30.00K
• Price to Earnings (P/E): 164.0
• Beta (1Y): 0.07
• 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: 55 Neutral
• Price Target: HK$0.17 ▼(-6.67% Downside)

The score is driven primarily by improving fundamentals (revenue growth) and a conservative balance sheet, but is held back by deteriorating margins and weak cash flow growth. Technicals are poor with the stock trading below key moving averages and a very low RSI, and valuation is constrained by an extremely high P/E despite a decent dividend yield.

Positive Factors

Revenue Growth

Consistent top-line growth indicates recovering demand and expanding market penetration across Asia. For a commission-and-fee travel model this supports stronger supplier terms, higher booking volumes and economies of scale, underpinning revenue resilience over the next 2–6 months.

Conservative Balance Sheet

A low leverage profile provides financial flexibility to manage seasonality and invest in product or partnership initiatives without refinancing stress. This resilience reduces bankruptcy risk and supports strategic spending during demand fluctuations over the medium term.

Diversified Revenue Streams & Partnerships

A mix of commissions, consultancy fees and strategic partner deals spreads revenue concentration and improves customer stickiness via loyalty programs. This structural diversity stabilizes cash inflows and supports repeat business through market cycles over coming months.

Negative Factors

Deteriorating Profitability Margins

Material margin compression reduces retained earnings and the firm’s ability to reinvest in growth or absorb shocks. With a very thin net margin, small revenue setbacks or cost increases can quickly erode profits and constrain strategic initiatives in the 2–6 month horizon.

Free Cash Flow Weakness

A steep decline in FCF growth curtails funding for working capital, marketing or partnership investments and increases reliance on external financing. Even with efficient cash conversion ratios, weakened FCF momentum raises operational and strategic funding risk over the medium term.

Falling ROE and Earnings Volatility

Lower ROE reflects diminished profitability on shareholders’ capital; coupled with EPS growth plunging (~-94.8%), it signals earnings volatility and reduced capacity to generate returns. This undermines capital allocation flexibility and limits strategic investments over coming months.

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 commissions from travel bookings, which include flights, hotels, and tour packages. Additionally, Travel Expert (Asia) Enterprises Limited earns income from service fees charged for customized travel planning and consultancy services. Strategic partnerships with airlines, hotels, and local tour operators further enhance its revenue streams by allowing the company to offer exclusive deals and packages. Seasonal promotions and loyalty programs also contribute to customer retention and repeat business, thereby bolstering overall 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	255.24M	255.24M	162.21M	40.27M	10.28M	6.42M
Gross Profit	81.67M	86.00M	67.82M	19.72M	5.27M	-220.00K
EBITDA	8.91M	14.41M	13.94M	1.48M	-16.44M	-25.62M
Net Income	3.37M	3.37M	9.03M	-2.20M	-17.92M	-32.89M
Balance Sheet
Total Assets	161.85M	161.85M	153.22M	105.36M	89.99M	112.62M
Cash, Cash Equivalents and Short-Term Investments	90.65M	90.65M	85.17M	85.16M	75.86M	95.87M
Total Debt	10.72M	10.72M	14.68M	7.49M	9.61M	14.41M
Total Liabilities	96.68M	96.68M	84.46M	45.77M	28.83M	34.16M
Stockholders Equity	65.00M	65.00M	68.59M	59.42M	60.98M	78.28M
Cash Flow
Free Cash Flow	18.53M	17.61M	24.25M	16.43M	-9.84M	-41.50M
Operating Cash Flow	21.09M	20.17M	27.65M	18.61M	-6.94M	-40.61M
Investing Cash Flow	33.10M	36.45M	-21.61M	-22.66M	19.94M	79.84M
Financing Cash Flow	-14.72M	-15.54M	-7.78M	-4.89M	-8.46M	-18.60M

Travel Expert (Asia) Enterprises Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.18
• 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:1235, the sentiment is Positive. The current price of 0.18 is above the 20-day moving average (MA) of 0.18, above the 50-day MA of 0.17, and above the 200-day MA of 0.16, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 63.02 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 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	64 Neutral	HK$122.00M	4.50	16.79%	―	80.68%	131.62%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1235	55 Neutral	HK$91.77M	164.00	0.79%	4.55%	32.99%	-94.85%
8668	51 Neutral	HK$124.80M	-27.37	-18.19%	―	1.28%	60.00%
8069	50 Neutral	HK$30.22M	-5.87	-7.99%	―	-17.40%	51.54%
1901	43 Neutral	HK$399.36M	-14.87	-29.79%	―	68.29%	41.90%
1620	39 Underperform	HK$132.00M	-4.51	-574.47%	―	-19.12%	-7.24%

Travel Expert (Asia) Enterprises Limited Corporate Events

Travel Expert (Asia) Reports Revenue Growth but Declining Profitability in Interim Results

Travel Expert (Asia) Enterprises Limited reported its interim financial results for the six months ended September 30, 2025. The company experienced a 4.5% decrease in total customer sales proceeds from continuing operations, amounting to HK$296.7 million, compared to the same period last year. However, revenue from continuing operations increased by 29.3% to HK$148.0 million. Despite the revenue growth, the company reported a loss of HK$0.4 million from continuing operations, down from a profit of HK$3.0 million the previous year. The Board decided not to declare an interim dividend for this period. These results indicate a challenging period for the company, with increased revenue but declining profitability, impacting its financial performance and stakeholder returns.

The most recent analyst rating on (HK:1235) stock is a Hold with a HK$0.18 price target. To see the full list of analyst forecasts on Travel Expert (Asia) Enterprises Limited stock, see the HK:1235 Stock Forecast page.

Travel Expert (Asia) Enterprises Appoints New Executive Director

Travel Expert (Asia) Enterprises Limited has announced the appointment of Mr. Ko Chun Wang, Kelvin as an executive director, effective November 27, 2025. Mr. Ko, who has been with the company since 2015 and is currently a managing director of a subsidiary, will oversee the company’s overall management and operations. This appointment strengthens the company’s leadership team, potentially impacting its strategic direction and operational efficiency.

The most recent analyst rating on (HK:1235) stock is a Hold with a HK$0.18 price target. To see the full list of analyst forecasts on Travel Expert (Asia) Enterprises Limited stock, see the HK:1235 Stock Forecast page.

Travel Expert (Asia) Announces Board Composition and Roles

Travel Expert (Asia) Enterprises Limited has announced the composition of its board of directors and their roles, highlighting the leadership structure within the company. This announcement may impact the company’s strategic direction and governance, potentially affecting its market positioning and stakeholder relations.

The most recent analyst rating on (HK:1235) stock is a Hold with a HK$0.18 price target. To see the full list of analyst forecasts on Travel Expert (Asia) Enterprises Limited stock, see the HK:1235 Stock Forecast page.

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.