The Hang Seng Index recovered yesterday following Wall Street to above the 50 days moving average but the daily turnover was still low. If you selected the right shares, you still have a chance to make profit. Tencent (700) hit a new record high yesterday while mobile game developer IGG (799) rose 6.8 percent.
China has made great efforts to develop civil aviation. The National Tourism Administration also said that the number of outbound trips in the next five years will exceed 600 million, and the average annual compound growth of the aeronautical information technology business is expected to reach 10-15 percent over the next few years.
Travelsky Tech (696) is the sole China civil aviation data provider. The company has also expanded its business to tourism information. Last May it spent US$39.4 million (HK$307 million) to acquire Irish tourism technology OpenJaw.
Daiwa Research has raised its target price for TravelSky Tech to HK$21, and maintained its "buy" rating. Daiwa expects TravelSky to record 13-15 percent year-on-year EPS growth for 2017-19 on continued growth in air traffic in China.
You should accumulate this share on dips.
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