Tiangong International Co Ltd

Tiangong International maintains a conservative capital structure with a debt-to-equity ratio of 0.46 and a current ratio of 1.75, indicating adequate short-term liquidity coverage. The company holds total assets of 13.8 billion CNY against total liabilities of 6.4 billion CNY, resulting in total equity of 7.4 billion CNY. Long-term debt stands at 3.4 billion CNY, and while the company generates positive free cash flow of 371 million CNY, the risk assessment flags that net cash is negative after subtracting total debt, suggesting reliance on debt financing for operations or growth.

Profitability metrics show a return on equity of 5.39% and a return on assets of 2.9%, which are modest returns on the capital base. The company reported revenue of 4.72 billion CNY with a gross profit of 952 million CNY, yielding a gross margin of approximately 20.2%. Operating income was 588 million CNY, leading to a net income of 400 million CNY, or a net margin of roughly 8.5%. Without cohort median data for direct comparison, these margins reflect the baseline profitability of the business in the current period.

Analysts project 42.2% upside to a mean price target of 5.445, signaling strong market confidence in future performance.

Operating margin of 12.5% significantly exceeds the cohort median of 7.5%, demonstrating superior operational efficiency relative to peers.

Net margin of 8.5% outperforms the cohort median of 5.3%, indicating robust profitability despite broader industry challenges.

Net income grew 11.6% year-over-year to 400.2 million CNY, showing recent earnings resilience amidst revenue declines.

Free cash flow increased 6.7% year-over-year to 371.0 million CNY, supporting liquidity and potential dividend sustainability.

Revenue declined 4.8% annually over four years, reflecting a persistent and significant contraction in top-line growth.

High credit risk flags suggest potential vulnerabilities in asset quality or counterparty reliability that could impact future earnings.

Long-term debt rose to 3.43 billion CNY in FY2026, increasing leverage and interest expense burdens over the period.

Return on equity of 5.4% trails the cohort median of 7.9%, indicating inefficient use of shareholder capital.

Net income CAGR of -11.9% over four years highlights a long-term deterioration in profitability trends.

Revenue ¥4.72B, −2,3% YoY; Operating income +8,3% YoY.

• ▍Revenue ¥4.72B, −2,3% YoY
• ▍Operating income +8,3% YoY
• ▍Net income +11,6% YoY
• ▍Free cash flow +6,7% YoY
• ▍Net margin 8.5%

Revenue ¥4.83B, −6,4% YoY; Operating income −13,4% YoY.

• ▍Revenue ¥4.83B, −6,4% YoY
• ▍Operating income −13,4% YoY
• ▍Net income −3,1% YoY
• ▍Free cash flow −18,8% YoY
• ▍Net margin 7.4%

Revenue ¥5.16B, +1,9% YoY; Operating income +1,1% YoY.

• ▍Revenue ¥5.16B, +1,9% YoY
• ▍Operating income +1,1% YoY
• ▍Net income −26,5% YoY
• ▍Free cash flow +119,0% YoY
• ▍Net margin 7.2%

Revenue ¥5.07B, −11,8% YoY; Operating income −28,1% YoY.

• ▍Revenue ¥5.07B, −11,8% YoY
• ▍Operating income −28,1% YoY
• ▍Net income −24,2% YoY
• ▍Free cash flow −37,2% YoY
• ▍Net margin 9.9%

Revenue ¥5.74B; Operating income ¥861.2M.

• ▍Revenue ¥5.74B
• ▍Operating income ¥861.2M
• ▍Net margin 11.6%