UBS Global Research initiated coverage on TravelSky Technology (00696) with a "buy" rating and a target price of HK$21.5.
The research house said TravelSky's main business aviation information technology (AIT) provides flight management and air ticket distribution system services for over 90% of flights in China.
UBS expects a steady AIT business with a deep moat to defend against competition. It forecast around 10% earnings growth p.a. in the next five years. The stock has traded lower amid negative sentiment on China's airlines sector, which is unfair as it prices in high correlation to China's airline industry but overlooks TravelSky's lower level of cyclicality, solid FCF and healthy balance sheet.
全新節目《說說心理話》青少年不可以戀愛！？真實個案講述驚心動魄經歷► 即睇
