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.


Write to Jiahui Huang at jiahui.huang@wsj.com


(END) Dow Jones Newswires

01-16-24 2311ET