The Corporate Travel Management Ltd (ASX: CTD) share price pushed higher again on Tuesday and finished the day up around 1% at $28.95.
At one stage its shares traded at an all-time high of $29.33, bringing its year-to-date price return to an impressive 38%.
Is it too late to buy Corporate Travel Management shares?
I don't think it is. Although its shares trade at a premium to the market average at 38x estimated full-year earnings, I believe the company is more than capable of growing its earnings at a level that justifies this.
Especially after the recent acquisition of Hong Kong-based Lotus Travel Group for a base consideration of approximately $50 million.
Lotus Travel has been operating for over 60 years and is one of the largest travel companies in Greater China, generating total transaction value (TTV) of A$1 billion in 2017 from its 1,000 local and international clients.
Combined with the company's Asia business, Corporate Travel Management will be the largest player in Hong Kong serving the Greater China market with a TTV approaching A$2.5 billion.
Management believes that this creates optimum scale which it can best leverage its technology, support costs and enhance its excellent supplier relationships across a wider base to best support long term sustainable growth.
But it isn't just Asia which I expect to provide the company with meaningful growth in the future.
The North American market is a massive opportunity which the company has barely scratched at the surface of. At present Corporate Travel Management has TTV of $1.3 billion in the market, meaning it has only a tiny share of the US$350 billion market.
Overall, I think there's still a long runway for growth ahead of the company that makes it a growth share that I want in my portfolio along with fellow travel shares Helloworld Travel Ltd (ASX: HLO) and Webjet Limited (ASX: WEB).
