[ET Net News Agency, 30 August 2019] Morgan Stanley lowered its target price for
TravelSky Technology (00696) to HK$17.35 from HK$23.02 and maintained its "overweight"
rating.
The research house sees a limited probability for TravelSky's re-rating, given its
projection of a 12% earnings CAGR for 2019-2021. Morgan also sees a low probability for a
further de-rating - margins have likely stabilized following an erosion in the past 12
months.
It said TravelSky's 1H net profit of Rmb1.4bn accounts for 51% of Morgan's previous
full-year estimate. Net margin contracted slightly to 37%. Management expects margins to
stay largely stable in 2019 and onwards.
Following 1H results, Morgan cut its net profit forecasts 9% for 2019, 12% for 2020, and
15% for 2021. It expects TravelSky's recurring net profit growth to slightly recover from
0.9% in 2018, to 9.5% in 2019, 12% in 2020, and 11% in 2021. (KL)
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00696 TRAVELSKY TECH
Nominal 
10.240 +0.200 (+1.992%) Research Report
30/08/2019 18:01
{I-bank focus}Morgan cuts TravelSky Tech (00696) to HK$17.35
| Remark: | Real time quote last updated: 25/04/2024 18:00 |
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