[ET Net News Agency, 8 February 2018] Macquarie Research lifted its target price for
Travelsky Technology (00696) to HK$27.1 from HK$22.3, and maintained its "outperform"
rating.
The research house revisited its investment thesis and raised its FY2017-19 earnings
estimates by 5-7%. It factored in lower staff cost ratios and better miscellaneous cost
control (eg travel) offsetting higher depreciation expenses.
Macquarie said TravelSky remains its preferred long exposure to long-term structural air
travel growth in China. In addition, it introduced the blue-sky fair value of HK$36.5, in
case of price reforms in the GDS (global distribution system) sector. (KL)