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China Ecotourism Group Limited (1371) AI Stock Analysis

HK:1371

China Ecotourism Group Limited

(HKEX:1371)

Select Model
Rating:42.15Neutral
Price Target:HKD 1.00â–¼(-1.48% Downside)
Action:reiterated
Date:10/08/26

The score is held down primarily by very weak financial performance—recurring losses, a recent revenue drop, and a highly stressed capital structure with negative equity and heavy debt versus assets. Technicals add additional caution with the stock trading below key moving averages despite neutral momentum indicators. Valuation screens as low on P/E, but that support is limited given the underlying profitability and balance-sheet risks.

Positive Factors
Recent operating cash-flow improvementPositive operating cash flow in the latest reported period is a constructive sign that the business generated cash from operations despite its losses. If sustained, this could reduce reliance on external funding, although the record remains inconsistent and does not yet form a stable cushion.
Negative Factors
Persistent unprofitable operationsRecurring losses indicate that the current business model is not converting revenue and gross profit into sustainable earnings. Continued deficits can consume financial resources, restrict reinvestment, and make any recovery dependent on operational improvement or additional financing.

China Ecotourism Group Limited (1371) vs. iShares MSCI Hong Kong ETF (EWH)

-80%-60%-40%-20%0%20%HK:1371-63.75%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 347.24M
Dividend Yield
―
Average Volume (3M)
37.72K
Price to Earnings (P/E)
0.3
Beta (1Y)
0.61
Revenue Growth
-24.87%
EPS Growth
66.85%
Country
Hong Kong
Employees
192
Sector
Consumer Cyclical
Sector Strength
61
Industry
Gambling, Resorts & Casinos

China Ecotourism Group Limited Business Overview & Revenue Model

Company Description

China Ecotourism Group Limited is an investment holding company that provides technology and operation services for lottery systems, terminal equipment, and game products. It also engages in the development and operation of ecotourism projects, as we...

China Ecotourism Group Limited Financial Statement Overview

Summary

Overall financial health is very weak: recurring net losses (e.g., ~-52% net margin in 2025-12-31) and a sharp revenue decline (~-42% YoY in 2025-12-31) are compounded by a highly stressed balance sheet with persistently negative shareholders’ equity and leverage that exceeds the asset base (2025-12-31 total debt ~346M vs. total assets ~132M). Cash flow shows some recent improvement with positive operating cash flow (~11.4M at 2025-12-31), but free cash flow remains volatile and does not yet offset the elevated solvency and profitability risk.

Income Statement

18Very Negative

Balance Sheet

9Very Negative

Cash Flow

28Negative
Financial statement breakdown
BreakdownTTMJun 2025Jun 2024Jun 2024Dec 2022Dec 2021
Income Statement
Total Revenue65.16M65.16M67.32M111.89M138.53M124.92M
Gross Profit15.36M15.36M27.69M40.11M41.88M49.28M
EBITDA24.57M26.72M-36.85M-36.20M-63.73M-193.16M
Net Income-34.03M-34.03M-271.97M-72.36M-146.02M-280.91M
Balance Sheet
Total Assets131.62M131.62M114.60M157.56M504.61M573.21M
Cash, Cash Equivalents and Short-Term Investments76.16M76.16M40.73M63.84M88.46M107.97M
Total Debt346.44M346.44M64.56M162.64M454.33M330.89M
Total Liabilities649.77M649.77M534.91M648.97M642.20M472.98M
Stockholders Equity-752.00M-752.00M-652.81M-723.19M-372.73M-143.60M
Cash Flow
Free Cash Flow00-38.08M27.76M-10.34M-53.31M
Operating Cash Flow11.40M11.40M-38.08M27.89M-7.33M-48.02M
Investing Cash Flow2.63M2.63M-1.06M-128.00K-9.96M-4.91M
Financing Cash Flow-4.43M-4.43M-15.48M1.43M61.47M78.09M

China Ecotourism Group Limited Technical Analysis

Technical Analysis SentimentNegative
Last Price1.01

Price Trends

50DMA1.15Negative
100DMA1.18Negative
200DMA1.50Negative

Market Momentum

MACD-0.05Positive
RSI37.53Neutral
STOCH28.18Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1371, the sentiment is Negative. The current price of 1.01 is below the 20-day moving average (MA) of 1.08, below the 50-day MA of 1.15, and below the 200-day MA of 1.50, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 37.53 is Neutral, neither overbought nor oversold. The STOCH value of 28.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1371.

China Ecotourism Group Limited Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

HK:1371 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:0027HK:002780OutperformHKD 140.33B13.0912.77%5.30%8.39%11.34%
HK:3918HK:391869NeutralHKD 9.73B4.1312.46%7.30%11.65%17.97%
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
HK:0200HK:020052NeutralHKD 5.09B4.8752.47%―6.61%―
HK:1680HK:168049NeutralHKD 124.64M-0.48-19.55%―-33.88%86.14%
HK:1128HK:112848NeutralHKD 23.80B7.88-22.18%9.92%9.38%60.07%
HK:1371HK:137142NeutralHKD 347.24M0.26-19.56%―-24.87%66.85%

* Consumer Cyclical Sector Average

Performance Comparison

-60%-40%-20%0%HK:1371HK:0200HK:0027HK:1680HK:3918HK:1128Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:1371 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:1371China Ecotourism Group Limited1.01-1.78-63.75%
HK:0200Melco International Development Limited2.24-2.54-53.13%
HK:0027Galaxy Entertainment Group 32.06-4.44-12.15%
HK:1680Macau Legend Development Ltd.0.13-0.25-65.19%
HK:3918NagaCorp 2.20-2.78-55.79%
HK:1128Wynn Macau 4.49-1.65-26.87%

China Ecotourism Group Limited Corporate Events

China Ecotourism Group Swings to Profit on Liability Gains and Improved Credit Metrics

Sep 24, 2026

China Ecotourism Group Limited reported a sharp turnaround in its financial performance for the year ended 30 June 2026, as continuing operations generated revenue of HK$84.1 million and a gross profit of HK$36.4 million, compared with revenue of HK$...

China Ecotourism Group Signals Profit on One‑Off Liability Gain

Sep 18, 2026

China Ecotourism Group Limited has issued a profit alert stating it expects to report profit attributable to owners of between HK$95 million and HK$105 million for the year ended 30 June 2026, compared with a loss of HK$72.4 million in the previous y...

China Ecotourism Group Sets Board Meeting to Approve Annual Results and Consider Dividend

Sep 11, 2026

China Ecotourism Group Limited, incorporated in Bermuda and listed on the Hong Kong Stock Exchange, operates in the ecotourism sector through its subsidiaries. The company’s board, led by Chairman and Executive Director Chan Ka Wang Chris, incl...

China Ecotourism Group Wins Dismissal of Winding-Up Petition in Hong Kong

Sep 8, 2026

China Ecotourism Group Limited has announced that a winding-up petition previously filed against the company has been dismissed by order of the Hong Kong High Court. The dismissal follows a joint application by the company and the petitioner via cons...

China Ecotourism Defends New Independent Director After Past Regulatory Censures

Aug 12, 2026

China Ecotourism Group Limited has issued a supplemental announcement providing additional details on the regulatory history of newly appointed independent non-executive director Mr. Chiang Chi Kin Stephen. The company disclosed that Chiang was publi...

China Ecotourism Group Names Chan Ka Wang Chris as New Chairman

Jul 27, 2026

China Ecotourism Group Limited has appointed Mr. Chan Ka Wang Chris as chairman of the board and an executive director, effective 27 July 2026, in a move that refreshes its top leadership. Chan, a 49-year-old York University graduate, brings more tha...

China Ecotourism Group Updates Board and Governance Committee Roles

Jul 27, 2026

China Ecotourism Group Limited has updated the market on the composition of its board of directors, confirming Chris Chan Ka Wang as chairman, Zhu Xinxin as chief executive officer and Di Ling as executive director, alongside three independent non-ex...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 08, 2026