Core Viewpoint - TravelSky Technology preannounced a net profit growth of approximately 5% YoY to around Rmb1.45 billion for 1H25, driven by steady revenue growth from aviation information technology services [1]. Revenue and Financial Performance - Revenue from aviation information technology services showed steady growth, while revenue from system integration services declined YoY due to construction and acceptance progress of airport system integration projects, leading to an overall decrease in total revenue [2]. - In 1H25, flight bookings increased by mid-single digits YoY, with domestic flight bookings rising by 4% and international flight bookings by domestic airlines increasing by 21%, while international flights provided by overseas airlines fell by 8% YoY [3]. - The firm slightly lowered its revenue forecasts for 2025 and 2026 by 3% to Rmb9.18 billion and Rmb9.82 billion, respectively, primarily due to lower assumptions on bookings for the AIT business and revenue from system integration services [6]. Business Segments and Trends - The firm expects a decline in the unit price for the AIT business in 1H25 due to changes in contracts and a decrease in the proportion of bookings for international flights provided by domestic airlines [3]. - The firm suggests monitoring the revenue recognition progress for project-based businesses, including system integration services and technical support, given the high revenue base in 2024 [4]. Associate Performance - The operation of TravelSky Mobile Technology, which holds a 20.66% stake by the firm, is noteworthy, especially after the launch of a direct-sale platform for the Umetrip app, allowing users to compare and purchase tickets without agency fees [5]. Valuation Metrics - The stock is currently trading at 14.5x 2025 estimated P/E and 12.9x 2026 estimated P/E, with an OUTPERFORM rating maintained and a target price of HK$13, reflecting a 15x 2025 estimated P/E with a 5% upside [6].