Travelsky Technology (696.HK) Operating profit significantly below forecasts due to the surge in costs, but should see an improvement in margin later April 9, 2019 476

PSR Recommendation: BUY Status: Upgraded
Target Price: HKDHKD25.47

Investment Summary
Travelsky Technology is the largest provider of the aviation information systems in
China, which developed systems, such as flight control, air ticket distribution, check-in,
boarding and load planning, accounting, settlement and clearing system, and aviation
logistic. Based on DCF valuation, we derived a TP of HK$25.47, implied a P/E of
25.2x and 22.4x in 2018/19F. We update to a “Buy” rating with a potential upside of
29.3%. (Closing price at 4 Apr 2019)

About the author

Profile photo of Terry Li

Terry Li
Investment Analyst

Graduated from Lingnan University, with Master of Science in International Banking and Finance and Bachelor of Business Administration respectively. Specializes in analyzing company fundamentals and valuation to explore investment opportunities in TMT, Education and Financial industry.

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