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TravelSky Technology
(0696)
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Rating:74Outperform
Price Target:
HK$9.50
â–²(4.40% Upside)
Action:Upgraded
Date:08/06/26
The score is driven primarily by strong financial quality (high profitability and a conservatively levered balance sheet) and supportive valuation (low P/E with a solid dividend yield). These positives are tempered by a neutral technical picture and fundamental watch-outs around the 2025 revenue decline and historically volatile free cash flow.
Positive Factors
Strong balance sheet
Very low leverage (debt/equity ~0.086) and steady equity growth give the company financial flexibility to fund platform investments, weather travel-cycle downturns and maintain dividends. Healthy ROE (~9–10%) indicates returns without heavy borrowing, supporting durable stability.
Negative Factors
Recent revenue decline
A drop in revenue in 2025, even modest, signals sensitivity to passenger volumes and contract timing. If travel demand softens or contract renewals become less favorable, top-line declines could compress future investment capacity and slow margin-driven earnings improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet
Very low leverage (debt/equity ~0.086) and steady equity growth give the company financial flexibility to fund platform investments, weather travel-cycle downturns and maintain dividends. Healthy ROE (~9–10%) indicates returns without heavy borrowing, supporting durable stability.
Read all positive factors
TravelSky Technology (0696) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$25.69B
Dividend Yield3.63%
Average Volume (3M)3.01M
Price to Earnings (P/E)9.0
Beta (1Y)0.99
Revenue Growth6.62%
EPS Growth17.91%
CountryHK
Employees6,901
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.83
Shares Outstanding932,562,000
10 Day Avg. Volume4,298,330
30 Day Avg. Volume3,013,045
Financial Highlights & Ratios
PEG Ratio0.91
Price to Book (P/B)1.13
Price to Sales (P/S)3.08
P/FCF Ratio12.61
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$11.99Price Target Upside31.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.84
Revenue Forecast (FY)HK$9.33B
TravelSky Technology Business Overview & Revenue Model
Company Description
TravelSky Technology Limited, established in Beijing, China, in 1979, specializes in providing comprehensive information technology services to the aviation and travel sectors across the People's Republic of China. The company's principal offering...
How the Company Makes Money
TravelSky generates revenue primarily by operating mission-critical transaction and IT platforms for airline and travel customers and charging for their usage and ongoing support. Key revenue streams typically include: (1) Aviation IT services and...
TravelSky Technology Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
65
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.88B | 8.77B | 8.82B | 6.98B | 5.21B | 5.48B |
| Gross Profit | 4.62B | 4.46B | 4.51B | 6.33B | 2.12B | 2.16B |
| EBITDA | 3.08B | 2.72B | 3.64B | 2.63B | 1.77B | 1.46B |
| Net Income | 2.42B | 2.34B | 2.07B | 1.40B | 627.05M | 551.30M |
Balance Sheet | ||||||
| Total Assets | 34.95B | 33.20B | 29.69B | 27.50B | 25.24B | 24.11B |
| Cash, Cash Equivalents and Short-Term Investments | 14.88B | 13.48B | 12.77B | 10.87B | 10.92B | 10.35B |
| Total Debt | 1.24B | 2.06B | 1.45B | 1.11B | 374.47M | 62.25M |
| Total Liabilities | 9.26B | 8.57B | 6.80B | 6.48B | 5.50B | 4.88B |
| Stockholders Equity | 25.03B | 23.99B | 22.30B | 20.47B | 19.23B | 18.76B |
Cash Flow | ||||||
| Free Cash Flow | 1.23B | 2.14B | 2.17B | -390.47M | 1.04B | 2.46B |
| Operating Cash Flow | 1.68B | 2.96B | 2.53B | 137.43M | 1.34B | 2.94B |
| Investing Cash Flow | 2.02B | -2.93B | 893.67M | -796.24M | -142.23M | -796.76M |
| Financing Cash Flow | -424.36M | -498.83M | -196.81M | 449.45M | -97.55M | -165.57M |
TravelSky Technology Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | HK$25.69B | 9.02 | 9.86% | 3.63% | 6.62% | 17.91% | |
64 Neutral | HK$541.94M | 5.93 | 6.36% | 4.25% | 8.20% | 286.36% | |
64 Neutral | HK$463.47M | 9.12 | 1.79% | 8.77% | -6.58% | -71.22% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | HK$306.19M | -0.99 | -14.17% | 13.93% | -7.04% | -163.40% | |
49 Neutral | HK$2.91B | -37.50 | -0.96% | 2.00% | 16.16% | 83.77% | |
45 Neutral | HK$10.68B | 22.94 | 2.97% | 1.22% | 3.18% | -31.38% |
* Technology Sector Average
HK:0696
TravelSky Technology
8.75
-1.62
-15.64%
HK:0354
Chinasoft International
3.82
-1.88
-33.05%
HK:0861
Digital China Holdings
1.80
-1.18
-39.64%
HK:1075
Capinfo Co., Ltd. Class H
1.87
-0.77
-29.17%
HK:1522
BII Railway Transportation Technology Holdings Co., Ltd.
0.23
-0.11
-31.53%
HK:1900
China ITS Holdings Co., Ltd.
0.18
-0.13
-42.58%
TravelSky Technology Corporate Events
TravelSky sets 2025 final dividend and clarifies tax treatment for shareholders
Jun 26, 2026
TravelSky Technology has declared a final ordinary dividend of RMB 0.276 per share for the financial year ended 31 December 2025, with shareholders approving the payout on 26 June 2026. The dividend will be paid in Hong Kong dollars at HKD 0.31734...
TravelSky Shareholders Approve 2025 Dividend and Governance Changes at AGM
Jun 26, 2026
TravelSky Technology said shareholders approved all resolutions at its 26 June 2026 annual general meeting, including the 2025 board report, audited group financial statements, amendments to the board’s working rules and articles of associat...
TravelSky Details Board Line-up and Governance Committees
Jun 26, 2026
TravelSky Technology has disclosed the current composition of its board of directors, led by chairman and executive director Jiang Bo, and including non-executive, independent non-executive and employee representative directors. The announcement c...
TravelSky updates board rules to strengthen governance framework
Jun 26, 2026
TravelSky Technology Limited has updated its Working Rules of the Board of Directors, incorporating all amendments up to June 26, 2026. The latest revisions were approved by ordinary resolution at the company’s annual general meeting of shar...
TravelSky appoints new employee representative director in board reshuffle
Jun 26, 2026
TravelSky Technology has appointed 55-year-old Sun Minghe as its new employee representative director, following his election at an employee representative meeting on 26 June 2026, while former employee representative director Liang Shuang stepped...
TravelSky Non-Executive Director Sun Yuquan Resigns Amid Board Reshuffle
Jun 11, 2026
TravelSky Technology Limited announced the resignation of non-executive director Sun Yuquan, who also stepped down from the company’s Strategy and Investment Committee (Legal Compliance Committee) due to a change in his work arrangements. Th...
TravelSky details board composition and governance committee roles
Jun 11, 2026
TravelSky Technology Limited has disclosed the current composition of its board of directors, led by chairman and executive director Jiang Bo, and comprising non-executive, independent non-executive, and employee representative directors. The boar...
TravelSky Extends Connected Cloud Service Deal With TravelSky Mobile Tech to 2029
Jun 10, 2026
TravelSky Technology has agreed to extend its service arrangement with its connected affiliate TravelSky Mobile Tech for a further three-year term from 1 August 2026 to 31 July 2029, under which it will continue providing cloud computing infrastru...
TravelSky Adds Board Appointment Resolution to 2025 AGM Agenda
Jun 9, 2026
TravelSky Technology has issued a supplemental notice for its 2025 annual general meeting, to be held on 26 June 2026 in Beijing, adding an additional ordinary resolution to the agenda. The new proposal, submitted by shareholder China Southern Air...
TravelSky updates timetable for 2025 final cash dividend
Jun 3, 2026
TravelSky Technology Limited announced an updated timetable for its final cash dividend for the financial year ended 31 December 2025, declaring a payout of RMB 0.276 per share. The update revises the date of shareholder approval to 26 June 2026, ...
TravelSky Sets 2025 AGM, Proposes Dividend and Governance Changes
Jun 3, 2026
TravelSky Technology has called its 2025 annual general meeting for 26 June 2026 in Beijing, where shareholders will vote on standard annual items including the 2025 board report, audited group financial statements, profit allocation, and the appo...
TravelSky Moves to Tighten Governance With Amendments to Articles and Board Rules
Jun 1, 2026
TravelSky Technology Limited plans to amend its Articles of Association and the working rules of its board of directors to better align with the corporate governance framework under PRC company law and relevant domestic and foreign regulations. Th...
TravelSky Proposes Auditor Change to WUYIGE After Eight-Year Tenure of BDO
Jun 1, 2026
TravelSky Technology plans to replace its long-time auditor BDO China SHU LUN PAN Certified Public Accountants LLP, which has served the group for eight consecutive years, in line with regulatory requirements on auditor rotation for state-owned en...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.