The good news keeps on travelling in for shareholders of Corporate Travel Management Ltd (ASX: CTD) who have enjoyed a share price gain of 82% over the past 12 months; for comparison, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has gained just 3.2%, while peer Flight Centre Travel Group Ltd (ASX: FLT) has lost 13% over the same one-year period.
The start of trading on Monday could see those gains increase even further thanks to the latest announcement from the fast-growing provider of corporate travel solutions.
What's happened: Alert investors who were still watching their screens at 4:14pm on Friday afternoon after the close of trade would have seen the release from CTM announcing a strategic joint venture (JV) with "one of China's fastest growing e-commerce companies, World99".
According to the group, the JV "enables a travel solution that more suitably caters for the cultural, language and service expectations of the Chinese consumer both within China and abroad."
The JV announcement wasn't the only exciting news to be released. The last paragraph of the announcement also noted an upgrade to full year profit guidance.
What's next: CTM is certainly doing an impressive job of growing both its top line and its bottom line. For the half year ending 31 December 2014 the group achieved a 93% increase in revenue, a 69% increase in underlying profit and raised its interim dividend by 33% to 6 cents per share.
The group is growing strongly, however, with a market capitalisation of over $1 billion, the stock is trading on a hefty multiple and arguably this fast growth is well-and-truly priced in to the stock.
