Investment Rating - The report maintains a "Buy" rating for China TravelSky Technology (00696 HK) with a target price of HKD 14 52 per share based on a 20x PE valuation for 2024 [4][11] Core Views - The company reported strong revenue and profit growth in H1 2024 with revenue reaching RMB 4 042 billion (YoY +22 2%) and net profit attributable to shareholders of RMB 1 367 billion (YoY +13 9%) [2][6] - Domestic air travel recovery remains robust with domestic passenger volume in H1 2024 exceeding 2019 levels by 12 1% while international passenger volume recovered to 76 0% of 2019 levels [2][6] - The AIT (Airline Information Technology) business saw revenue growth of 19 8% YoY to RMB 2 265 billion in H1 2024 driven by strong domestic recovery [2][6] - Settlement and clearing business revenue surged 50 0% YoY to RMB 278 million in H1 2024 due to the recovery of international business volume [2][6] - System integration services revenue increased significantly by 111 9% YoY to RMB 680 million in H1 2024 driven by increased project completions [2][6] - Data network services revenue grew steadily by 7 3% YoY to RMB 216 million in H1 2024 supported by increased distribution information service volume [2][6] Financial Forecasts - Revenue is expected to grow by 22 4% in 2024 and 9 0% in 2025 with net profit attributable to shareholders forecasted at RMB 1 932 billion and RMB 2 297 billion respectively [2][11] - The company's gross margin is expected to improve steadily reaching 53 0% in 2024 and 54 1% in 2025 [11][12] - EPS is projected to be RMB 0 66 in 2024 and RMB 0 79 in 2025 [11][12] Business Performance - The company's AIT business continues to recover with domestic air travel showing strong growth while international travel is gradually recovering [2][6] - The settlement and clearing business is benefiting from the recovery of international air travel and the expansion of system and product services [6][8] - System integration services are experiencing significant growth due to increased project completions and the company's involvement in smart airport construction [6][8] - Data network services are maintaining steady growth with the company expanding its overseas market presence and enhancing its distribution capabilities [6][9] Industry Outlook - The domestic air travel market is expected to continue its natural growth while the international market is projected to further recover in H2 2024 [7] - The company is well-positioned to benefit from the ongoing recovery in the aviation and tourism industry as a key player in civil aviation information technology [11]
中国民航信息网络：收入利润较快增长，国内航线恢复强劲