Key Takeaways:
(Bloomberg) -- Hong Kong China Travel Service (Holdings) Co. Ltd. (00308.HK) expects to achieve double-digit revenue growth this year, shifting its focus toward high-growth tourism assets such as ski resorts to fuel expansion.
"Driven by acquisitions related to our ice and snow businesses and the development of new projects, revenue is expected to record double-digit growth this year," Ng Qiang, the company's chairman, said.
The company is targeting a compound annual growth rate of over 10 percent in both revenue and profit over the next five years. This growth strategy follows a year where the company reported a net loss of HKD282 million. The new guidance hinges on the performance of newly acquired ski resorts and hotels, alongside developments like the Qinghai Heidushan project.
Shares of Hong Kong China Travel Service have been volatile, and this forward-looking statement aims to reassure investors about the company's new growth trajectory. The company's travel permit business, which saw revenue decline by HKD64 million last year as demand returned to normal post-pandemic, is expected to remain stable.
The new strategy marks a significant pivot for the travel services group, diversifying its revenue streams beyond the traditional travel permit business. Investors will be watching the performance of the new ice and snow assets in the upcoming quarters to validate the company's ambitious growth targets.
This article is for informational purposes only and does not constitute investment advice.
