Elevator Pitch
Hong Kong-listed Chinese aviation information technology services company TravelSky Technology Limited (TSYHF) (TSYHY) [696:HK] is currently trading at 17.4 times consensus forward FY2019 P/E which represents a discount to the stock's historical five-year average forward P/E of approximately 19 times.
I think this is justified due to TravelSky's cost pressures and slowing revenue growth in the near term, notwithstanding the company's status as a proxy for long-term secular Chinese air traffic growth. The company's operating expenses should continue to be on the uptrend (albeit at a slower pace compared