TSYHF - TravelSky Technology: Weathering The Storm With Cost Management
Elevator Pitch
I maintain my "Neutral" rating on Hong Kong-listed Chinese aviation information technology services company TravelSky Technology Limited (OTCPK:TSYHF) (OTCPK:TSYHY) [696:HK].
The coronavirus pandemic resulted in TravelSky's flight booking volume to fall by -52.87% YoY in 1Q2020, and market consensus expects the company's full-year FY2020 revenue to decline by -15.7% YoY. The company will be very dependent on effective cost management and its balance sheet strength to weather the current storm.
In the medium to long term, TravelSky is a play on secular Chinese air traffic growth, and recent share