Shanghai Jin Jiang International Hotels Co Ltd

Shanghai Jin Jiang International Hotels Co Ltd maintains a capital structure characterized by significant leverage, with total liabilities of 29.9 billion CNY against total equity of 16.0 billion CNY. The debt-to-equity ratio stands at 1.27, indicating a highly leveraged balance sheet, while the current ratio of 1.0 suggests tight short-term liquidity. Long-term debt comprises 20.3 billion CNY of the total liabilities, creating substantial fixed obligations. Despite generating 3.3 billion CNY in operating cash flow, free cash flow is compressed to 191.4 million CNY due to capital expenditures of 1.8 billion CNY, resulting in negative net cash after debt subtraction.

Profitability metrics reflect modest returns on capital, with a return on equity of 6.41% and a return on assets of 2.24%. The company reports a net income of 925.5 million CNY on revenues of 13.8 billion CNY, yielding a net margin of approximately 6.7%. Operating income of 1.49 billion CNY indicates that core operations generate positive earnings before interest and taxes, though the high debt load likely exerts pressure on net income through interest expenses. The price-to-earnings ratio of 16.61 and price-to-book ratio of 1.07 suggest the market values the company near its book value, reflecting the capital-intensive nature of the hospitality industry and the associated leverage risks.

Revenue concentration and segment details are not explicitly provided in the available data, preventing a detailed analysis of geographic or business segment exposure. The company’s total revenue of 13.8 billion CNY serves as the primary aggregate metric for scale, but without segment breakdowns, the specific drivers of this revenue remain opaque in the current dataset. The absence of segment data limits the ability to assess diversification benefits or concentration risks within the hospitality portfolio.

Growth trajectory analysis is constrained by the absence of historical period data in the input. Without five-year annual or eight-quarter quarterly revenue and net income trends, it is not possible to evaluate the company’s historical growth rates or momentum. The current financial snapshot provides a static view of performance, lacking the temporal context necessary to determine whether the company is expanding, contracting, or stabilizing its operations.

Risk assessment highlights medium liquidity risk and low dilution risk, with a key flag noting that net cash is negative after subtracting total debt. The high debt-to-equity ratio of 1.27 and current ratio of 1.0 underscore the financial strain associated with maintaining a large debt burden in a capital-intensive industry. The negative net cash position implies that the company relies on external financing or operating cash flow to service its debt obligations, increasing vulnerability to interest rate fluctuations or revenue downturns.

Recent events and market sentiment are reflected in analyst estimates, with a mean price target of 27.07 CNY and a median target of 26.50 CNY, suggesting potential upside from the current market price of 18.73 CNY. The mean recommendation of 2.38 indicates a moderate buy sentiment, supported by four strong-buy and six buy ratings against two hold ratings. No specific filing, news, or transcript observations are provided to detail recent corporate actions or strategic announcements, leaving the analyst estimates as the primary indicator of market expectations.

Analysts project 33.5% upside to a mean price target of 27.07 CNY, reflecting strong market confidence.

Net income surged with a 76.4% four-year CAGR, demonstrating robust long-term profitability growth for the company.

Cash conversion ratio of 3.22 ranks best-in-class, significantly outperforming the cohort median of 1.2.

Long-term debt decreased to 21.1 billion CNY in 2025, showing a positive trend in leverage reduction.

Free cash flow plummeted 76.2% year-over-year to 804 million CNY, signaling severe liquidity generation issues.

The company faces high credit risk, posing significant potential threats to financial stability and debt servicing.

Debt-to-equity ratio of 1.27 sits in the bottom quartile, indicating excessive leverage compared to peers.

Revenue ¥3.12B, +6,1% YoY; Operating income +161,3% YoY.

• ▍Revenue ¥3.12B, +6,1% YoY
• ▍Operating income +161,3% YoY
• ▍Net income +280,1% YoY
• ▍Net margin 4.4%

Revenue ¥3.57B, +9,1% YoY; Operating income +328,2% YoY.

• ▍Revenue ¥3.57B, +9,1% YoY
• ▍Operating income +328,2% YoY
• ▍Net income +192,2% YoY
• ▍Net margin 5.0%

Revenue ¥3.71B, −4,7% YoY; Operating income +2,8% YoY.

• ▍Revenue ¥3.71B, −4,7% YoY
• ▍Operating income +2,8% YoY
• ▍Net income +45,5% YoY
• ▍Net margin 10.1%

Revenue ¥3.58B, −2,7% YoY; Operating income −38,9% YoY.

• ▍Revenue ¥3.58B, −2,7% YoY
• ▍Operating income −38,9% YoY
• ▍Net income −49,1% YoY
• ▍Net margin 9.3%

Revenue ¥2.94B; Operating income ¥93.9M.

• ▍Revenue ¥2.94B
• ▍Operating income ¥93.9M
• ▍Net margin 1.2%

Revenue ¥3.27B; Operating income -¥122.5M.

• ▍Revenue ¥3.27B
• ▍Operating income -¥122.5M
• ▍Net margin -5.9%

Revenue ¥3.90B; Operating income ¥536.2M.

• ▍Revenue ¥3.90B
• ▍Operating income ¥536.2M
• ▍Net margin 6.6%

Revenue ¥3.69B; Operating income ¥945.7M.

• ▍Revenue ¥3.69B
• ▍Operating income ¥945.7M
• ▍Net margin 17.8%

Revenue ¥13.81B, −1,8% YoY; Operating income −11,7% YoY.

• ▍Revenue ¥13.81B, −1,8% YoY
• ▍Operating income −11,7% YoY
• ▍Net income +1,6% YoY
• ▍Free cash flow −76,2% YoY
• ▍Net margin 6.7%

Revenue ¥14.06B, −4,0% YoY; Operating income −5,8% YoY.

• ▍Revenue ¥14.06B, −4,0% YoY
• ▍Operating income −5,8% YoY
• ▍Net income −9,1% YoY
• ▍Free cash flow −55,2% YoY
• ▍Net margin 6.5%

Revenue ¥14.65B, +29,5% YoY; Operating income +273,4% YoY.

• ▍Revenue ¥14.65B, +29,5% YoY
• ▍Operating income +273,4% YoY
• ▍Net income +691,1% YoY
• ▍Free cash flow +48,2% YoY
• ▍Net margin 6.8%

Revenue ¥11.31B, −0,8% YoY; Operating income −16,0% YoY.

• ▍Revenue ¥11.31B, −0,8% YoY
• ▍Operating income −16,0% YoY
• ▍Net income +32,4% YoY
• ▍Free cash flow −7,2% YoY
• ▍Net margin 1.1%