HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

China Travel International Investment Hong Kong / Equity Bottom-Up

China Travel International Investment Hong Kong

<p>We think <a href="https://www.smartkarma.com/entities/china-travel-intl-inv-hk" target="_blank" data-smartkarma-citation="entities:3879:1" rel="noopener">China Travel Intl Inv Hk (308 HK)</a> (CTII) is an interesting name misunderstood, overlooked and under-researched by the market. As such, this will potentially provide promising upside return given its undemanding valuation relative to the travel agency and package tour peers. </p><p>CTII is not a travel agency and instead it is a major operator of tourist attractions in China that is well positioned to benefit from the recovery of the domestic travel market. Trading at just 0.4x P/B and with net cash equals to 36% of current share price, CTII is also a potential candidate for privatisation by its ultimate parent China Tourism Group.   </p>

We think China Travel Intl Inv Hk (308 HK) (CTII) is an interesting name misunderstood, overlooked and under-researched by the market. As such, this will potentially provide promising upside return given its undemanding valuation relative to the travel agency and package tour peers. CTII is not a travel agency and instead it is a major operator of tourist attractions in China that is well positioned to benefit from the recovery of the domestic travel market. Trading at just 0.4x P/B and with net cash equals to 36% of current share price, CTII is also a potential candidate for privatisation by its ultimate parent China Tourism Group.   

China Travel Intl Inv (308 HK): Recovery Play Overlooked by the Market + Privatisation Possibility

Hong Kong

Travel Expert Asia Enterprises Ltd. offers travel services. The Company provides airline reservations, hotel packages, and booking for cruises, rental cars, ferries, trains, hotels, and escorted tours.

Travel Expert (Asia) Enterprises (1235 HK)

China Travel Intl Inv (308 HK): Recovery Play Overlooked by the Market + Privatisation Possibility

China Travel Intl Inv is an interesting recovery play yet to be full appreciated by the market. Its depressed valuation and exposure to the...

Osbert Tang, CFA