China CYTS Tours Holding Co Ltd

China CYTS Tours Holding Co Ltd maintains a capital structure characterized by significant leverage, with total liabilities of 11.32 billion CNY against total equity of 6.34 billion CNY. The debt-to-equity ratio stands at 0.99, indicating that debt nearly equals equity, while long-term debt comprises 6.28 billion CNY of the total liabilities. Liquidity is assessed as medium risk, supported by a current ratio of 1.06, which suggests the company can meet short-term obligations but with limited buffer. Operating cash flow of 937.36 million CNY provides some operational liquidity, though free cash flow is constrained to 147.14 million CNY after capital expenditures of 142.80 million CNY. The company holds a negative net cash position after subtracting total debt, highlighting reliance on external financing or operational cash generation to service obligations.

Profitability metrics reveal thin margins and low returns on capital. The company reported revenue of 11.34 billion CNY, with gross profit of 2.19 billion CNY, resulting in a gross margin of approximately 19.3%. Operating income is 267.96 million CNY, and net income is 83.51 million CNY, yielding a net margin of roughly 0.74%. Return on equity is 1.32%, and return on assets is 0.47%, both indicating inefficient use of capital relative to the equity and asset base. These returns are likely below industry medians for the Hotels, Restaurants & Leisure sector, reflecting the capital-intensive nature of the business and current margin pressures.

Segment and geographic revenue mix data is not provided in the available input, preventing a detailed analysis of revenue concentration or regional exposure. The company’s activity is broadly classified under tourism and leisure, but specific segment contributions to the 11.34 billion CNY revenue are not disclosed in the current dataset.

Growth trajectory analysis is limited due to the absence of historical period data in the input. Without multi-year revenue or net income trends, it is not possible to assess the direction or acceleration of growth. The current financial snapshot reflects a single normalized period, offering no insight into year-over-year changes or seasonal patterns.

Risk factors include medium liquidity risk and low dilution risk. The key flag notes that net cash is negative after subtracting total debt, which could constrain financial flexibility in downturns. The debt-to-equity ratio of 0.99 and current ratio of 1.06 suggest moderate financial stress, particularly if operating cash flows decline. Dilution risk is low, as basic and diluted shares outstanding are identical at 723.84 million, indicating no significant convertible securities or options impacting share count.

Recent events include analyst estimates with a mean price target of 8.72 CNY and a median of 8.50 CNY, suggesting potential upside from the current market price of 6.65 CNY. The mean recommendation is 3.17, indicating a neutral to slightly negative sentiment, with three buy ratings and no strong buy or hold ratings. No specific filing, news, or transcript observations are provided in the input to detail recent corporate actions or strategic shifts.

Revenue grew 13.9% year-over-year to CNY 11.3 billion in FY2026, demonstrating strong top-line expansion momentum.

Free cash flow turned positive in FY2024 and remains positive at CNY 147 million in FY2026, indicating improved operational efficiency.

The stock trades at CNY 7.92, offering 10.1% upside to the mean analyst price target of CNY 8.72.

Cash conversion ratio of 11.22 ranks best-in-class compared to the cohort median of 1.2, highlighting superior cash generation.

Long-term debt decreased from CNY 7.0 billion in FY2023 to CNY 6.3 billion in FY2026, showing deleveraging efforts.

The company carries a high credit risk flag, suggesting significant concerns regarding its ability to meet financial obligations.

Return on equity of 1.32% is significantly below the cohort median of 7.87%, indicating poor capital efficiency.

Debt-to-equity ratio of 0.99 is more than double the cohort median of 0.40, reflecting higher financial leverage risk.

Revenue ¥3.31B, +13,8% YoY; Operating income −154,6% YoY.

• ▍Revenue ¥3.31B, +13,8% YoY
• ▍Operating income −154,6% YoY
• ▍Net income −604,9% YoY
• ▍Net margin -1.1%

Revenue ¥3.16B, +17,2% YoY; Operating income −31,1% YoY.

• ▍Revenue ¥3.16B, +17,2% YoY
• ▍Operating income −31,1% YoY
• ▍Net income −32,9% YoY
• ▍Net margin 1.7%

Revenue ¥2.81B, +15,8% YoY; Operating income −4,3% YoY.

• ▍Revenue ¥2.81B, +15,8% YoY
• ▍Operating income −4,3% YoY
• ▍Net income −1,0% YoY
• ▍Net margin 3.6%

Revenue ¥2.05B; Operating income -¥27.0M.

• ▍Revenue ¥2.05B
• ▍Operating income -¥27.0M
• ▍Net margin -1.6%

Revenue ¥2.91B; Operating income ¥53.8M.

• ▍Revenue ¥2.91B
• ▍Operating income ¥53.8M
• ▍Net margin 0.3%

Revenue ¥2.70B; Operating income ¥184.9M.

• ▍Revenue ¥2.70B
• ▍Operating income ¥184.9M
• ▍Net margin 3.0%

Revenue ¥2.43B; Operating income ¥205.7M.

• ▍Revenue ¥2.43B
• ▍Operating income ¥205.7M
• ▍Net margin 4.2%

Revenue ¥11.34B, +13,9% YoY; Operating income −35,5% YoY.

• ▍Revenue ¥11.34B, +13,9% YoY
• ▍Operating income −35,5% YoY
• ▍Net income −48,0% YoY
• ▍Free cash flow −33,6% YoY
• ▍Net margin 0.7%

Revenue ¥9.96B, +3,3% YoY; Operating income −5,7% YoY.

• ▍Revenue ¥9.96B, +3,3% YoY
• ▍Operating income −5,7% YoY
• ▍Net income −17,3% YoY
• ▍Free cash flow +6,4% YoY
• ▍Net margin 1.6%

Revenue ¥9.63B, +50,1% YoY; Operating income +180,8% YoY.

• ▍Revenue ¥9.63B, +50,1% YoY
• ▍Operating income +180,8% YoY
• ▍Net income +158,2% YoY
• ▍Free cash flow +123,0% YoY
• ▍Net margin 2.0%

Revenue ¥6.42B, −25,7% YoY; Operating income −820,2% YoY.

• ▍Revenue ¥6.42B, −25,7% YoY
• ▍Operating income −820,2% YoY
• ▍Net income −1 670,9% YoY
• ▍Free cash flow −103,2% YoY
• ▍Net margin -5.2%

Revenue ¥8.64B; Operating income ¥75.7M.

• ▍Revenue ¥8.64B
• ▍Operating income ¥75.7M
• ▍Net margin 0.2%