BTG Hotels (Group) Co Ltd

BTG Hotels maintains a capital structure characterized by significant leverage and constrained liquidity. The company holds total assets of 24.39 billion CNY against total liabilities of 12.32 billion CNY, resulting in a debt-to-equity ratio of 0.73. Long-term debt stands at 8.86 billion CNY, while cash and equivalents are minimal at 0.56 million CNY, creating a net cash position that is deeply negative. This imbalance is reflected in a current ratio of 0.88, indicating that current liabilities exceed current assets, which aligns with the medium liquidity risk assessment. Despite the leverage, the company generates substantial operating cash flow of 3.31 billion CNY, providing a buffer against immediate solvency concerns.

Profitability metrics indicate modest returns on capital. The company reports a net income of 811.14 million CNY on revenue of 7.61 billion CNY, yielding a net margin of approximately 10.7%. Return on equity (ROE) is 6.94%, and return on assets (ROA) is 3.43%. These returns are generated with a gross profit of 3.03 billion CNY and operating income of 1.13 billion CNY. Without cohort median data for direct comparison, these figures must be evaluated against the broader hospitality industry norms, where asset-heavy models often exhibit lower ROA but stable cash flows. The valuation multiples reflect this profile, with a P/E of 15.8 and an EV/EBITDA of 18.73.

Revenue concentration and geographic exposure details are not provided in the available data. The company’s activity is broadly classified under Hotels, Restaurants & Leisure, suggesting a diversified portfolio of properties or management contracts, but specific segment breakdowns are absent. Consequently, the analysis cannot assess the risk associated with specific geographic regions or business segments.

Growth trajectory analysis is limited by the absence of historical period data. The current financial snapshot provides a single-period view of revenue and net income, preventing the calculation of year-over-year growth rates or trend analysis. The free cash flow of 1.20 billion CNY, derived from operating cash flow of 3.31 billion CNY less capital expenditures of 0.43 billion CNY, suggests the company is maintaining its asset base while generating excess cash.

Risk factors are primarily centered on liquidity and leverage. The key flag notes that net cash is negative after subtracting total debt, highlighting the reliance on debt financing. The medium liquidity risk is corroborated by the current ratio below 1.0. Dilution risk is assessed as low, with basic and diluted shares outstanding being identical at 1.12 billion shares, indicating no significant options or convertible securities currently impacting the share count.

Recent events and market sentiment are reflected in analyst estimates. The mean price target is 16.90 CNY, with a median of 17.60 CNY, suggesting upside potential from the current market price of 11.85 CNY. The mean recommendation is 2.21, leaning towards a buy, with 5 strong buys and 8 buys recorded. This positive sentiment contrasts with the conservative valuation metrics, potentially indicating expectations for future earnings growth or multiple expansion.

Analysts project 28.2% upside to a mean price target of 16.90, reflecting strong buy consensus from 19 analysts.

Net income surged with a 95.4% four-year CAGR, demonstrating robust long-term profitability recovery and growth trajectory.

Cash conversion ratio of 3.96 is best-in-class, far surpassing the cohort median of 1.2, highlighting exceptional cash generation.

Long-term debt decreased steadily from 11.9 billion CNY in 2022 to 8.9 billion CNY in 2026, reducing leverage risk.

The company faces high credit risk, posing a significant threat to financial stability and potential asset quality deterioration.

Medium liquidity risk flags indicate potential challenges in meeting short-term obligations or managing cash flow volatility.

Revenue ¥1.78B, +0,7% YoY; Operating income +22,9% YoY.

• ▍Revenue ¥1.78B, +0,7% YoY
• ▍Operating income +22,9% YoY
• ▍Net income +18,5% YoY
• ▍Net margin 9.5%

Revenue ¥1.82B, −2,0% YoY; Operating income −18,8% YoY.

• ▍Revenue ¥1.82B, −2,0% YoY
• ▍Operating income −18,8% YoY
• ▍Net income −32,1% YoY
• ▍Net margin 3.1%

Revenue ¥2.12B, −1,6% YoY; Operating income −5,4% YoY.

• ▍Revenue ¥2.12B, −1,6% YoY
• ▍Operating income −5,4% YoY
• ▍Net income −2,2% YoY
• ▍Net margin 16.9%

Revenue ¥1.90B, +0,4% YoY; Operating income +13,0% YoY.

• ▍Revenue ¥1.90B, +0,4% YoY
• ▍Operating income +13,0% YoY
• ▍Net income +7,4% YoY
• ▍Net margin 13.4%

Revenue ¥1.77B; Operating income ¥202.1M.

• ▍Revenue ¥1.77B
• ▍Operating income ¥202.1M
• ▍Net margin 8.1%

Revenue ¥1.86B; Operating income ¥126.5M.

• ▍Revenue ¥1.86B
• ▍Operating income ¥126.5M
• ▍Net margin 4.5%

Revenue ¥2.16B; Operating income ¥507.7M.

• ▍Revenue ¥2.16B
• ▍Operating income ¥507.7M
• ▍Net margin 17.0%

Revenue ¥1.89B; Operating income ¥307.8M.

• ▍Revenue ¥1.89B
• ▍Operating income ¥307.8M
• ▍Net margin 12.6%

Revenue ¥7.61B, −1,9% YoY; Operating income +1,2% YoY.

• ▍Revenue ¥7.61B, −1,9% YoY
• ▍Operating income +1,2% YoY
• ▍Net income +0,6% YoY
• ▍Free cash flow −6,2% YoY
• ▍Net margin 10.7%

Revenue ¥7.75B, −0,5% YoY; Operating income +2,0% YoY.

• ▍Revenue ¥7.75B, −0,5% YoY
• ▍Operating income +2,0% YoY
• ▍Net income +1,4% YoY
• ▍Free cash flow −14,7% YoY
• ▍Net margin 10.4%

Revenue ¥7.79B, +53,1% YoY; Operating income +248,1% YoY.

• ▍Revenue ¥7.79B, +53,1% YoY
• ▍Operating income +248,1% YoY
• ▍Net income +237,8% YoY
• ▍Free cash flow +5 522,1% YoY
• ▍Net margin 10.2%

Revenue ¥5.09B, −17,3% YoY; Operating income −18 378,1% YoY.

• ▍Revenue ¥5.09B, −17,3% YoY
• ▍Operating income −18 378,1% YoY
• ▍Net income −1 136,0% YoY
• ▍Free cash flow −106,8% YoY
• ▍Net margin -11.3%