By Jiahui Huang
TravelSky Technology shares slumped after the company issued weaker-than-expected guidance for 2023 earnings.
The Beijing-based travel company’s shares slid 23% to 9.78 Hong Kong dollars (US$1.25) on Wednesday morning, on track for their largest one-day percentage drop on record.
TravelSky said late Tuesday that its expects net profit for 2023 to be between 1.25 billion yuan (US$174.3 million) and CNY1.45 billion, compared with CNY679 million for 2022.
The company said the expected profit increase was due to a higher number of civil aviation passengers.
However, TravelSky’s 2023 guidance is “much lower than our expectation,” which should drive a share-price correction, Daiwa analysts Kelvin Lau and Frank Yip said in a note.
Citi analysts said in a note that the results are softer than expected at first glance, but will wait for further clarification over the weakness in results.
Both banks maintained buy ratings on TravelSky.
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