China’s two top travel companies can expect results to improve this year
TravelSky Technology and China Travel International have stock price targets upgraded by analysts
Morgan Stanley said it was positive about TravelSky Technology’s results for this year. It reiterated an ‘overweight’ rating for the firm and raised its target price for the company’s stock to HK$15.86 from HK$13.77.
TravelSky Technology, a provider of information technology to China’s aviation and travel industries, had a 16 per cent net profit boost last year to 1.9 billion yuan. The result was better than a 14 per cent rise estimated by Morgan Stanley. The investment bank said it expects net profit at the firm will increase between 18 and 23 per cent in the coming three years.
“TravelSky is actively looking for suitable investors for UmeTrip with potential synergies and business opportunities,” Lau said in the report. “We have also factored in a potential value of HK$2.4 billion for the Umetrip application into our bull-case scenario.”
China’s government is planning to build 50 more airports under its current five-year plan. TravelSky Technology expects that will generate greater revenue for one of its businesses, Lau said.