U-tour Travel Group Co., Ltd. (002707)

Equity Research Report　|　Industry: Travel Services　|　Report Date: September 13, 2026　|　As of the close on September 11, 2026; technical indicators calculated using unadjusted daily data

This report was automatically compiled by AI based on publicly available information and is for reference only; it does not constitute investment advice.

1. Executive Summary

The most decision-relevant feature of U-tour Travel at present is that “revenue is broadly stable, but profitability remains under pressure”: revenue for the first half of 2026 was RMB 2.79981 billion, down 2.60% year on year; net profit attributable to the parent was RMB 30.7170 million, down 24.06% year on year, while non-recurring-adjusted net profit attributable to the parent fell 23.04% year on year. Although full-year 2025 revenue increased 5.69% to RMB 6.82247 billion, net profit attributable to the parent was only RMB 7.0587 million, down 93.34% year on year, indicating that the recovery in revenue has not yet translated into stable profit growth.

The business mix is being adjusted. In the first half of 2026, travel wholesale revenue was RMB 1.979 billion, down 10.20% year on year, and remained the main source of revenue; travel retail revenue was RMB 477 million, up 20.66%, while integrated marketing services revenue was RMB 332 million, up 28.00%. By comparison, travel wholesale accounted for 74.26% of revenue in 2024, while the gross margin of travel retail was 21.84%, significantly higher than the 11.95% for travel wholesale and 7.33% for integrated marketing services. Accordingly, a higher retail mix, improved product structure and greater channel efficiency are important potential drivers of subsequent profit recovery.

The company operates in the midstream to downstream portion of the tourism value chain. Its core capabilities are primarily in outbound-tourism product development, resource integration, wholesale and retail channels, and customer service, rather than in owning airline, hotel or scenic-area assets. Revenue in 2024 was RMB 6.455 billion, up 95.70% year on year, with tourism services accounting for 99.28%; however, fragmented industry competition, commoditization of tourism products, OTA traffic advantages, and external factors such as airfares, hotel prices, destination services, foreign-exchange rates and destination policies constrain the company’s pricing power and profit stability.

Both valuation and short-term performance reflect considerable uncertainty. As of September 11, 2026, the share price was RMB 5.46, with a total market capitalization of approximately RMB 5.367 billion. Based on institutional forecast EPS, forecast P/E for 2026–2028 was approximately 109x, 68x and 50x, respectively. Over the same period, the share price was below the MA5 and MA10 and aligned with the MA20 and the Bollinger-band middle line; the MACD histogram was negative, and aggregate net outflow of major funds over the most recent 10 trading days was approximately RMB 23.59 million. Institutional forecasts of profit recovery have not yet been sufficiently validated by current operating data. Going forward, key areas to monitor include whether the wholesale business can stabilize and whether growth in retail and integrated marketing can improve the overall profit margin.

2. Company Overview

2.1 Basic Information

2.2 Main Businesses and Product Portfolio

• Travel wholesale: Purchases upstream resources including air tickets, hotels, attractions, restaurants, visas, cruises and destination services; designs tourism products and sells them through travel agencies, travel agents and other distribution channels. Revenue in 2024 was RMB 4.793 billion, representing 74.26% of total revenue and up 136.43% year on year, with a gross margin of 11.95%. The business is mainly carried by brands including United Travel and Bamboo Garden International Travel.
• Travel retail: Sells tourism products directly to end consumers through company-operated outlets, partner-operated outlets, travel consultants, call centers, official websites, social media, livestreaming platforms, online communities and OTA partnerships. Revenue in 2024 was RMB 746 million, representing 11.55% of total revenue and up 59.83% year on year, with a gross margin of 21.84%.
• Integrated marketing services: Provides corporate marketing consulting, conference execution, exhibition participation and visits, roadshows and launches, incentive travel, business-travel services and secondary destination development for corporate, government and institutional clients. Revenue in 2024 was RMB 870 million, representing 13.48% of total revenue and up 11.61% year on year, with a gross margin of 7.33%. The business is mainly operated by U-Tour Bright and related subsidiaries.
• Other extended businesses: Include inbound tourism, domestic tourism, high-end tourism, educational travel and study abroad, immigration and property services, healthcare and medical services, and fragmented destination services. The company also jointly invested with an Alibaba-related entity to establish Hangzhou Axin and develop a B2B distribution platform for the tourism industry.
• Other business revenue in 2024 was RMB 46 million, representing 0.72% of total revenue.

2.3 Position in the Upstream and Downstream Value Chain and Cost-Profit Structure

U-tour Travel operates in the midstream to downstream portion of the tourism value chain and is an integrated tourism service provider combining “upstream resource integration and product design + downstream channel distribution and end-customer services.” The company does not own scarce natural resources or large-scale proprietary airline, hotel or scenic-area assets. Its resource advantages are mainly reflected in procurement scale, product-organization efficiency, channel coverage and brand trust.

• The company’s principal purchased resources include air tickets and air transportation, domestic and overseas hotels, overseas destination services, tour guides, vehicles, catering, attraction tickets, destination experience programs, visa services, cruise resources, as well as convention and exhibition venues, event execution and business-service resources.
• In 2024, purchases from the five largest suppliers totaled RMB 1.043 billion, accounting for 18.57% of total annual purchases. Supplier names were disclosed anonymously as “Supplier 1” and similar designations, making it impossible to determine whether they were concentrated among airlines, hotel groups or overseas destination-service providers.
• The largest supplier accounted for 8.90% of purchases in 2024, indicating some dependence on key resources. The five-largest-supplier concentration data came from the company’s 2024 annual report, but supplier identities were not disclosed, preventing further cross-checking of the nature of the business.
• The company’s upstream bargaining power mainly comes from centralized procurement, wholesale scale, long-term cooperation and product-integration capabilities. However, airfares, hotel prices, overseas service fees, foreign-exchange rates and destination policies are subject to significant external constraints, and the company does not have absolute pricing power over upstream costs.
• Outbound-tourism operations involve payments in foreign currencies such as U.S. dollars and euros. The company manages part of its foreign-exchange risk through measures including forward foreign-exchange purchases.
• Travel wholesale reaches end consumers mainly through travel-agent distributors, retail travel agencies and other distribution channels; travel retail directly serves individual tourists; integrated marketing services mainly target government, corporate and institutional clients.
• As of 2024, sales to the five largest customers totaled RMB 978 million, accounting for 15.16% of annual sales, while the largest customer accounted for 10.43%. The data came from the company’s 2024 annual report, but customer names were disclosed anonymously as “Customer 1” and similar designations. It is therefore impossible to determine whether they were large OTAs, travel-agent distributors, corporate clients or other institutions. The data source is single-source and should be confirmed against the latest annual report.
• Tourism products are relatively commoditized, making consumer price comparisons easy. Large OTA platforms have advantages in traffic and search entry points; wholesalers need to rely on product combinations, destination resources, service quality and channel efficiency to maintain profitability.
• Retail directly reaches consumers and generally has a higher gross margin than wholesale, but it must bear more customer-acquisition, store, personnel and marketing expenses. Integrated marketing services depend on major-client acquisition, project bidding and execution capabilities, and have relatively low margins.
• Downstream competition is not the “annual price reduction” model seen in the auto-parts industry. It is mainly reflected in consumer price comparisons, OTA traffic competition, travel-agency channel competition and competition to win institutional-client projects.
• As of December 31, 2024, accounts receivable were RMB 298 million, representing approximately 4.61% of revenue; prepayments were RMB 451 million, or approximately 6.99% of revenue; accounts payable were RMB 426 million, or approximately 6.59% of revenue; and contract liabilities were RMB 579 million, or approximately 8.97% of revenue. The increase in prepayments was mainly attributable to business growth and higher advance payments for air tickets and hotels. The increase in contract liabilities was mainly due to advance payments received for tourism services during periods such as the Chinese New Year holiday. Accounts receivable represented a lower proportion of revenue than prepayments and contract liabilities, reflecting to some extent a pattern of “collecting customer payments before paying suppliers.” However, this does not establish that the company has strong upstream bargaining power; it may still incur greater capital occupation during peak seasons when resources are secured in advance.
• In 2024, purchases from the five largest suppliers accounted for 18.57% of total annual purchases, while sales to the five largest customers accounted for 15.16% of total annual sales. Both figures came from the company’s 2024 annual report, and names were disclosed anonymously, preventing further verification of the specific counterparties and business nature. The supplier and customer concentration data are available only on the basis described in the annual-report summary for that year. No other annual data suitable for cross-checking were provided; the latest annual report should be regarded as authoritative.

The company operates in the midstream to downstream portion of the tourism value chain and is an integrated service provider combining upstream resource procurement and integration, tourism-product design and downstream channel distribution. Overall, it is neither a high-margin upstream-resource business nor a strongly branded consumer-goods company. Further profit improvement will mainly depend on the recovery of outbound-tourism flows, a higher share of travel retail, product-mix upgrades, centralized procurement and product differentiation, as well as improved online and offline channel efficiency and economies of scale. At the same time, results remain affected by airfares, hotel and destination-service prices, foreign-exchange rates, destination policies, tourist demand and marketing expenses.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

In the first half of 2026, non-recurring-adjusted net profit attributable to the parent was RMB 27.1629 million, down 23.04% year on year; basic EPS was RMB 0.031, down 24.39% year on year; and net operating cash flow was RMB 290.07 million, down 17.05% year on year. As of June 30, 2026, net assets attributable to shareholders of the listed company were RMB 928.01 million, up 3.95% from the end of 2025; total assets were RMB 2.77428 billion, up 14.67% from the end of 2025. Non-recurring-adjusted net profit attributable to the parent in 2025 was RMB 71.4640 million, down 32.05% year on year, while basic EPS was approximately RMB 0.007.

Revenue and net profit attributable to the parent both declined year on year in the first half of 2026, and profit has not yet returned to growth. By business, travel wholesale revenue was approximately RMB 1.979 billion, down 10.20% year on year; travel retail revenue was approximately RMB 477 million, up 20.66%; and integrated marketing-services revenue was approximately RMB 332 million, up 28.00%. Revenue growth mainly came from travel retail and integrated marketing, while the traditional travel-wholesale business remained under pressure. Revenue continued to grow in 2025, but profit fell markedly, showing a severe divergence between revenue and profit growth. The company recorded a net loss attributable to the parent of approximately RMB 59.36 million in the fourth quarter of 2025.

3.2 Earnings Forecasts

According to data from Tonghuashun, as of September 10, 2026, six institutions had issued forecasts for 2026 results within the preceding six months. The above Tonghuashun data were compiled from extracts of broker research reports and do not constitute guidance from the listed company or represent Tonghuashun’s investment views. Consensus forecasts for 2027–2028 revenue are incompletely disclosed and should not be directly treated as reliable market consensus expectations. Forecasts differ among brokers, and institutional estimates are relatively sensitive to outbound-tourism demand, foreign-exchange rates, the geopolitical environment and household willingness to consume.

3.3 Valuation and Institutional Ratings

As of September 11, 2026, the share price was approximately RMB 5.47, total shares outstanding were approximately 982.7 million, total market capitalization was approximately RMB 5.375 billion, and the 52-week price range was approximately RMB 4.60–9.09. Based on net assets attributable to shareholders of the listed company of RMB 928.01 million as of June 30, 2026, net asset value per share was approximately RMB 0.944 and static P/B was approximately 5.79x. Since net profit attributable to the parent over the past 12 months was low, some market-data platforms display a negative, blank or uncalculable trailing P/E. Forecast P/E is therefore more appropriate for current valuation. Based on the Tonghuashun institutional forecast EPS average, forecast P/E for 2026–2028 was approximately 109x, 68x and 50x, respectively. Based on Caitong Securities’ or China Everbright Securities’ 2026 EPS forecast of approximately RMB 0.06, the corresponding P/E was approximately 91x. Overall, the current share price already assigns a relatively high valuation to future profit recovery. Valuation is not inexpensive and depends mainly on the realization of future profits rather than current earnings. The main verifiable recent broker target price is RMB 7.33 from Guotai Haitong; Investing.com’s target price is RMB 5.90 but is based on only one analyst. The two figures differ considerably, and target-price data lack sufficient cross-validation. The “six institutional forecasts” disclosed by Tonghuashun are not fully consistent with the specific institutional details visible on its page. The 2026 net profit attributable to the parent of approximately RMB 55 million should therefore be viewed as the midpoint of an institutional forecast range rather than a definitive earnings conclusion.

4. Recent News and Announcements

4.1 Independent Director Resigns at End of Term and By-Election Process Initiated

On September 12, 2026, the company disclosed announcements regarding the resignation and by-election of an independent director. Former independent director Zhang Zhishun applied to resign as independent director of the sixth Board of Directors, convener of the Board Audit Committee, member of the Remuneration and Appraisal Committee, and member of the Nomination Committee, as his consecutive tenure is approaching six years. Because his resignation would cause the proportion of independent directors on the Board to fall below one-third and leave the Board without an accounting professional, the resignation will take effect after the shareholders’ meeting elects a new independent director. Until then, he will continue to perform the relevant duties. The company nominated Zhang Yonghui as a candidate for independent director of the sixth Board and intends for the candidate to serve as convener of the Audit Committee and as a member of the Remuneration and Appraisal Committee and Nomination Committee after election. Zhang Yonghui has not yet obtained an independent-director qualification certificate and has undertaken to attend the most recent independent-director training organized by the Shenzhen Stock Exchange and obtain the relevant qualification. The candidate’s eligibility and independence remain subject to review by the Shenzhen Stock Exchange without objection before submission to the shareholders’ meeting.

4.2 Extraordinary Shareholders’ Meeting Scheduled for October 13, 2026 to Consider Independent-Director By-Election

The company plans to convene its first extraordinary shareholders’ meeting of 2026 on October 13, 2026, to consider the Proposal on the By-Election of an Independent Director. The record date is October 8, 2026. The proposal is an ordinary resolution and requires approval by more than one-half of the valid voting rights represented by the attending shareholders. Some announcement-transcription pages have missing fields for the online voting dates. The relevant official dates should be based on the original announcement disclosed by the company on the CNINFO website.

4.3 First-Half 2026 Results Under Pressure, with Growth in Retail and Integrated Marketing

The company disclosed its 2026 interim report on August 29, 2026. Revenue for the first half of 2026 was RMB 2.79981 billion, down 2.60% year on year; net profit attributable to shareholders of the listed company was RMB 30.7170 million, down 24.06%; non-recurring-adjusted net profit attributable to the parent was RMB 27.1629 million, down 23.04%; and net cash flow from operating activities was RMB 290.07 million, down 17.05%. By business, travel wholesale revenue was RMB 1.97897 billion, down 10.20% year on year; travel retail revenue was RMB 477.43 million, up 20.66%; and integrated marketing-services revenue was RMB 331.64 million, up 28.00%. The company plans not to pay a cash dividend, issue bonus shares or increase share capital through capital reserves for the first half of 2026. The company highlighted risks including industry competition, political and economic changes in outbound destinations, visa policies, foreign-exchange fluctuations and merger integration, and stated that it is advancing destination-resource integration, channel expansion into lower-tier markets, digital-intelligence transformation and “tourism +” business development.

4.4 RMB 57 Million of New Financing Guarantees for Subsidiaries, Bringing Total Outstanding Guarantees to RMB 270 Million

On August 29, 2026, the company disclosed an update regarding guarantees provided for wholly owned subsidiaries. The new maximum principal balance totaled RMB 57 million, comprising: RMB 30 million from Bank of China’s Beijing Chongwen Sub-branch and RMB 10 million from the Beijing Branch of Bank of Nanjing for United Travel (Beijing) International Travel Service Co., Ltd.; RMB 7 million from the Beijing Branch of Bank of Nanjing for U-Tour Bright (Beijing) International Business Conference and Exhibition Co., Ltd.; and RMB 10 million from the Beijing Branch of Bank of Nanjing for Bamboo Garden International Travel Service Co., Ltd. All guarantees are joint and several liability guarantees, with a guarantee period of three years from the date on which the debt-performance period expires. The guarantees fall within the RMB 20 billion mutual-guarantee quota previously approved by the company for 10 controlled subsidiaries for 2026 and do not require resubmission to the Board or shareholders’ meeting. As of the announcement date, the company’s actual guarantees for subsidiaries totaled RMB 270 million, representing 30.24% of the latest audited net assets attributable to shareholders of the listed company. Apart from guarantees for subsidiaries, neither the company nor its subsidiaries had other external guarantees, and there were no overdue guarantees.

4.5 Subsidiary Receives RMB 1.20 Million in Government Subsidy

On August 5, 2026, the company disclosed that a subsidiary of its wholly owned subsidiary U-Tour Bright Integrated Marketing Consulting Co., Ltd., namely U-Tour Bright (Beijing) International Business Conference and Exhibition Co., Ltd., received a government subsidy of RMB 1.20 million related to income. The subsidy had been received in cash and is expected to be recognized as non-operating income for 2026, increasing 2026 total profit by RMB 1.20 million. Final accounting treatment and the impact on profit will be subject to the annual audit confirmation of the accounting firm. The amount represents approximately 17.00% of the company’s latest audited net profit attributable to shareholders of the listed company, but it is a one-off government subsidy with limited sustainability.

4.6 No Recent Earnings Forecast, Share Repurchase, Shareholding Change or Major M&A Announcements Identified

As of September 13, 2026, among the 2026 August-to-September announcements identified in this search, no newly disclosed third-quarter 2026 earnings forecast or earnings-forecast revision was found. No share-repurchase plan, repurchase update or repurchase cancellation announcement newly disclosed in September 2026 was found. No newly disclosed plan or implementation update regarding share purchases or sales by the controlling shareholder, actual controller or major shareholders during August–September 2026 was identified. No newly disclosed major merger and acquisition, asset restructuring or acquisition transaction announcement during August–September 2026 was found. These conclusions reflect the announcement search results as of the time of the summary and do not represent an explicit statement by the company that it will not undertake such matters in the future.

4.7 No Recent New Regulatory Measures, Administrative Penalties or Exchange Disciplinary Actions Identified

As of September 13, 2026, the search of announcements for August–September 2026 found no new regulatory measures, administrative penalties or exchange disciplinary actions involving the company. Earlier foreign-exchange administrative penalty information falls outside the scope of this recent-announcement review.

5. Share-Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, U-tour Travel closed at RMB 5.46, down 4.04% on the day. The share price fell below the MA5 and MA10 but remained aligned with the MA20 and the Bollinger-band middle line. RSI6 was in the weaker portion of the neutral range, the MACD histogram was negative, and major funds recorded an aggregate net outflow over the most recent 10 trading days. Short-term technical and fund-flow conditions were weak. After trading in a range around RMB 5.68–5.74 from September 7 to September 10, the share price broke below that range on September 11. However, turnover value of approximately RMB 132 million was not materially higher than the RMB 194 million recorded on September 3, and there was not yet an extreme volume-backed sell-off.

5.3 Short-Term Outlook (Next Week, Scenario Analysis for Reference Only)

⚠️ Risk warning: The following is a subjective scenario analysis based on closing data as of September 11, 2026. It does not constitute investment advice or a definitive forecast of future share prices.

① Key Technical Levels

② Scenarios for the Coming Week (Subjective Weights, Not Statistical Probabilities)

• Range-bound consolidation (relatively high subjective weight, approximately six-tenths; a heuristic subjective weight based on current technical indicators, price position and fund flows rather than a statistical probability): Price range of approximately RMB 5.40–5.70. Trigger conditions include the share price holding RMB 5.40–5.46, turnover value remaining around RMB 120–150 million, and no consecutive volume-backed declines. If the price retakes RMB 5.62–5.66, it may oscillate back toward approximately RMB 5.70 in the short term. This scenario is based on the price remaining close to the MA20 and Bollinger-band middle line, while the MACD histogram is negative and aggregate major-fund flows over the past 10 days are negative.
• Moderately weak decline (medium subjective weight; a heuristic subjective judgment based on current technical indicators, price position and fund flows rather than a statistical probability): Price range of approximately RMB 5.05–5.40. Trigger conditions include the closing price breaking below RMB 5.40 for consecutive sessions, turnover value rising above RMB 150–180 million, and continued net outflows of major funds. If RMB 5.40 is lost, support near RMB 5.20 should be monitored; if RMB 5.20 is also lost, the lower Bollinger band near RMB 5.05 should be observed.
• Strengthening rebound (low subjective weight; a heuristic subjective judgment based on current technical indicators, price position and fund flows rather than a statistical probability): Price range of approximately RMB 5.66–5.87. Trigger conditions include regaining RMB 5.62–5.66, consecutive increases in turnover value with at least one day exceeding RMB 180 million, and major-fund flows shifting from consecutive net outflows to sustained net inflows. Only a further break above the recent rebound high near RMB 5.74 could bring the price closer to the upper Bollinger band at RMB 5.87. If the price rebounds without support from volume and fund flows, the sustainability of the rebound will require further observation.

③ Fund-Flow and Liquidity Background

As of September 11, 2026, the company’s total market capitalization was approximately RMB 5.37 billion and its free-float market capitalization was approximately RMB 4.72 billion. Daily turnover value was approximately RMB 132 million and the turnover rate was 2.78%. Average turnover value over the most recent five trading days was approximately RMB 133 million, with an average turnover rate of approximately 2.73%. Recent normal turnover value was approximately RMB 130–150 million, indicating adequate but not particularly active liquidity. Aggregate major-fund net outflow over the most recent 10 trading days was approximately RMB 23.59 million, including a net outflow of approximately RMB 13.28 million on September 11. Shareholder-structure data came from the June 30, 2026 interim report and the relevant institutional-holding classification snapshot, published on August 29, 2026: the 10 largest tradable shareholders collectively held approximately 268 million shares, representing 31.01% of the free float; the 10 largest shareholders collectively held approximately 382 million shares, or approximately 38.84% of total shares; as of that date, 23 institutions collectively held approximately 119 million shares, representing 13.80% of the free float. Of these, 21 funds held approximately 12.5391 million shares, representing 1.44% of the free float, while other institutions held approximately 107 million shares, representing 12.36%. The 10 largest shareholders included the Fullgoal CSI Tourism Theme ETF, with a holding of approximately 1.01%. Institutional holdings were primarily classified as “other institutions,” while public funds accounted for a relatively limited proportion of the free float; it would therefore be inappropriate to simply regard public-fund holdings as highly concentrated. The above shareholder data were approximately two and a half months old as of September 11, 2026, and the structure may have changed during that period. Concentration data should therefore be used as historical ownership background rather than as a direct inference of current holdings. Based on normal recent turnover value of approximately RMB 130–150 million and a turnover rate of approximately 2.7%, any improvement in liquidity accompanied by sustained increases in turnover value should be assessed together with price volatility and fund absorption.

The observable price-volume confirmation signal is as follows: if daily turnover value subsequently rises above approximately RMB 180 million for consecutive sessions, the turnover rate is clearly higher than the recent norm of approximately 2.7%, and major-fund flows simultaneously turn positive, this may be regarded as a relatively clear signal that short-term funds are re-entering. If increased volume is primarily accompanied by declines, it should be interpreted as the release of selling pressure and not independently regarded as a bullish signal.

④ Key Points to Monitor (Observation Framework Only, Not Trading Instructions)

• Observe whether the RMB 5.40–5.46 support zone can hold effectively; this is an observation framework, not a trading instruction.
• Observe whether RMB 5.62–5.66 can be regained and whether turnover value increases when it is regained; this is an observation framework, not a trading instruction.
• If the share price falls below RMB 5.20, observe the support near the lower Bollinger band around RMB 5.05; this is an observation framework, not a trading instruction.
• If daily turnover value reaches approximately RMB 180 million or more on consecutive occasions and major-fund flows turn positive, this may serve as a price-volume signal of improving fund conditions; this is an observation framework, not a trading instruction.

The above scenario analysis is based on closing data as of September 11, 2026, and historical price and technical-indicator calculations. Short-term share prices may also be affected by news, fund flows, the broader market environment and other factors. Technical indicators themselves have lags and limitations. This does not guarantee the actual future trend or constitute a buy or sell recommendation. Investors should independently assess the situation based on the latest market information and bear investment risks themselves.

6. Industry Landscape and Competitor Analysis

6.1 Industry Conditions

The tourism-services industry has many participants and is highly fragmented. Competition has shifted from competition among individual travel agencies to competition involving “resources + products + channels + traffic.” Industry participants include traditional large travel agencies and tourism groups, specialized outbound-tourism wholesalers, OTA platforms, and scenic-area and destination operators.

6.2 Competitive Landscape

• As of the end of 2024, China had 64,616 travel agencies. In 2024, national travel-agency revenue was RMB 565.77 billion and operating profit was RMB 3.78 billion. A simple calculation of operating profit divided by revenue gives an industry operating margin of approximately 0.67%, which is not equivalent to the net margin of listed travel-agency companies.
• In 2024, outbound trips by mainland Chinese residents reached 122.792 million, up 41% year on year. The recovery of outbound tourism was an important growth driver for the travel-agency industry.
• The leading outbound-tourism destinations by organized traveler volume in the third quarter of 2024 included Thailand, Japan, Hong Kong, South Korea, Macao, Russia, Singapore, Malaysia, Vietnam and Indonesia.
• OTA platforms control traffic entry points, user search, transactions and data capabilities. Traditional travel agencies remain valuable in complex outbound tourism, group travel, visas, destination services and after-sales support. The two sides compete for traffic while also cooperating in supply chains and channels.
• U-tour Travel’s relative advantages include its scale and brand accumulation in outbound-tourism wholesale, experience with long-haul destinations, integration of wholesale, retail and integrated marketing, nationwide agents and online/offline channels, and comprehensive organizational capabilities covering air tickets, hotels, visas, cruises and destination services.
• The company’s limitations include reliance primarily on cooperative procurement of upstream resources, a lack of large-scale proprietary airline, hotel or scenic-area assets, generally limited industry entry barriers, commoditization and price competition in tourism products, and dependence on the recovery of outbound tourism and discretionary household consumption.

6.3 Major Competitors

U-tour Travel is representative in nationwide outbound-tourism wholesale, long-haul outbound-tourism products, resource organization and wholesale-retail integration. However, its upstream resources are primarily procured through cooperation, and it lacks large-scale proprietary airline, hotel or scenic-area assets. Compared with Caesar Tourism, the two have relatively similar travel-agency business models. Compared with China CYTS, U-tour Travel has a weaker asset-based destination-operations profile. Compared with Lingnan Holdings, U-tour Travel emphasizes nationwide outbound-tourism wholesale and long-haul products. Compared with China Tourism Group Duty Free and OTAs, business definitions and commercial models differ substantially, making fully like-for-like comparisons of revenue, gross margin or valuation inappropriate.

7. Risk Factors

• Risk of a decline in travel wholesale: Travel-wholesale revenue fell 10.20% year on year in the first half of 2026, while the business accounted for 74.26% of the company’s revenue in 2024. If wholesale remains under pressure, growth in retail and integrated marketing may not be sufficient to offset the impact.
• Risk that profit recovery falls short of expectations: In 2025, revenue increased 5.69% year on year, but net profit attributable to the parent fell 93.34% year on year to RMB 7.0587 million. In the first half of 2026, net profit attributable to the parent fell another 24.06% year on year. Revenue growth or recovery may therefore not translate into corresponding profit growth.
• Outbound-destination risk: The company’s main businesses rely heavily on outbound tourism and related services. Political and economic changes in destinations, adjustments to visa policies, changes in the cross-border travel environment or fluctuations in tourist demand could affect product sales, resource organization and revenue recognition.
• Upstream-cost and foreign-exchange risk: The company mainly procures air tickets, hotels, overseas destination services, visas and cruises and does not have absolute pricing power over upstream costs. Fluctuations in airfares, hotel prices, overseas service fees and exchange rates for payments in U.S. dollars, euros and other foreign currencies could compress tourism-product gross margins.
• Traffic and price-competition risk: Tourism products are relatively commoditized, and large OTAs control user search and transaction entry points, making consumer price comparisons easy. The company may face rising customer-acquisition costs, higher channel fees and product-price competition, affecting retail and wholesale margins.
• Subsidiary-guarantee and capital-occupation risk: As of the announcement date in August 2026, the company’s actual guarantees for subsidiaries totaled RMB 270 million, representing 30.24% of the latest audited net assets attributable to the parent. If the solvency of relevant subsidiaries changes, the company’s cash flow and asset security could be affected.
• Institutional-client and project-execution risk: Integrated marketing services depend on acquiring government, corporate and institutional clients, winning project bids and executing projects. The business had a gross margin of only 7.33% in 2024. If project acquisition falls short or labor, execution and marketing costs rise, business growth may be difficult to convert into profit.
• Valuation-compression risk: As of September 11, 2026, the share price was approximately RMB 5.46, corresponding to a 2026 forecast P/E of approximately 109x based on institutional forecast EPS. Current valuation relies heavily on future earnings recovery. If actual results fall short of forecasts, the valuation center could face adjustment pressure.
• Weakening technical and fund-flow risk: As of the September 11, 2026 close, the share price was below the MA5 and MA10, the MACD histogram was negative, and aggregate major-fund net outflow over the most recent 10 trading days was approximately RMB 23.59 million. If the share price decisively breaks below RMB 5.40 on increased volume, short-term volatility could intensify.
• Risk related to corporate-governance procedures: The former independent director resigned because the six-year consecutive service limit is approaching. The by-election candidate has not yet obtained an independent-director qualification certificate, and the relevant eligibility and independence remain subject to review by the Shenzhen Stock Exchange without objection and consideration by the shareholders’ meeting. The by-election process therefore remains subject to pending review and approval.

8. Conclusion and Outlook

The company’s medium-term growth thesis lies in the recovery of outbound-tourism demand, expansion of travel retail and integrated marketing, wholesale-retail integration, and destination-resource integration, channel expansion into lower-tier markets and digital-intelligence transformation. If travel wholesale returns to growth while retail maintains rapid growth and increases its revenue share, product-mix improvements and economies of scale could support profit recovery. Institutional forecasts place the 2026–2028 midpoint of net profit attributable to the parent at approximately RMB 55 million, RMB 78 million and RMB 111 million, respectively. However, these forecasts are relatively sensitive to outbound-tourism demand, foreign-exchange rates, the geopolitical environment and household willingness to consume.

Near-term operations remain in a recovery and validation phase. Revenue and profit both declined year on year in the first half of 2026, and the company recorded a net loss attributable to the parent of approximately RMB 59.36 million in the fourth quarter of 2025, indicating that it has not yet established stable profit-release capabilities. As of the end of June 2026, net operating cash flow was RMB 290.07 million, down 17.05% year on year. At the same time, actual guarantees for subsidiaries totaled RMB 270 million, representing 30.24% of the latest audited net assets attributable to the parent. Going forward, the sustainability of the growth thesis should be assessed by considering the recovery of wholesale, the profit contributions from retail and integrated marketing, and changes in cash flow and guarantee risks.

The current share price corresponds to a high forecast valuation, while technical conditions are weak. Future performance will depend on a joint improvement in earnings delivery and fund absorption. Technically, RMB 5.40–5.46 is an important short-term observation range, RMB 5.05–5.20 is a stronger lower-support reference range, and RMB 5.64–5.87 is an upper resistance range. These levels reflect only historical prices and indicator conditions as of September 11, 2026 and cannot replace an assessment of the company’s fundamentals and market environment.

Data Sources

• https://static.cninfo.com.cn/finalpage/2025-04-29/1223361712.PDF
• U-tour Travel Group Co., Ltd. 2024 Annual Report
• U-tour Travel (002707)_Company Announcements_U-tour Travel: 2024 Annual Report_Sina Finance
• U-tour Travel (002707)_Company Announcements_U-tour Travel: 2022 Annual Report_Sina Finance
• U-tour Travel (002707)_Company Announcements_U-tour Travel: 2023 Annual Report_Sina Finance
• Ministry of Culture and Tourism of the People’s Republic of China<div>Statistical Bulletin on Culture and Tourism Development in 2024</div>
• China Travel Service Industry Development Report 2025 Released Online
• Caissa Tourism Group Co., Ltd. 2025 Annual Report Summary
• China CYTS Tours Holding Co., Ltd. 2024 Annual Report
• Lingnan Holdings Co., Ltd. 2024 Annual Report
• China Tourism Group Duty Free Corporation Limited
• https://static.cninfo.com.cn/finalpage/2026-08-29/1225525456.PDF
• U-tour Travel (002707)_Company Announcements_U-tour Travel: 2026 Interim Report Summary_Sina Finance
• U-tour Travel Group Co., Ltd. 2026 Interim Report Summary
• U-tour Travel: First-half travel-wholesale product revenue fell by 10%; the era of rapid tourism-industry growth has passed_East Money
• U-tour Travel (002707) Earnings Forecast_F10_Tonghuashun Financial Services
• Company Announcements_U-tour Travel: 2025 Annual Report_Sina Finance
• U-tour Travel (002707) 2025 Annual Report and 2026Q1 Results Review: Overseas Destination Demand Fluctuations Weigh on Results_Sina Finance
• U-tour Travel (002707) Earnings Forecast_F10_Tonghuashun Financial Services
• U-tour Travel (002707) 2026 Interim Results Review: Short-Term Earnings Disruption Does Not Alter the Transformation Direction; Long-Term Growth Value Gradually Realizing_Sina Finance
• Shanxi Securities Consumer Sector: U-tour Travel 2025 Annual Report and 2026 Q1 Results Review: Business Mix Shows Positive Changes, with Retail and Franchise Revenue Shares Rising_Sina Finance
• U-tour Travel (002707) 2026 Interim Results Review: Short-Term Earnings Disruption Does Not Alter the Transformation Direction; Long-Term Growth Value Gradually Realizing_Sina Finance
• U-tour Travel (002707) Latest Share Price, Real-Time Chart, Share-Price Analysis and Forecast_Investing.com
• U-tour Travel (002707)_Company Announcements_U-tour Travel: 2026 Interim Report Summary_Sina Finance
• U-tour Travel (002707)_Company Announcements_U-tour Travel: Resolution of the Eighth Meeting of the Sixth Board of Directors_Sina Finance
• U-tour Travel (002707)_Company Announcements_U-tour Travel: Notice of the First Extraordinary Shareholders’ Meeting of 2026_Sina Finance
• U-tour Travel (002707)_Company Announcements_U-tour Travel: 2026 Interim Report_Sina Finance
• U-tour Travel (002707)_Company Announcements_U-tour Travel: Announcement on the Progress of Providing Guarantees for Wholly Owned Subsidiaries_Sina Finance
• U-tour Travel (002707)_Company Announcements_U-tour Travel: Announcement on Government Subsidy Received by Subsidiary_Sina Finance
• U-tour Travel (002707) Company Announcements_Sina Finance
• Foreign-Exchange Administrative Penalty Information Search
• List of Main Board Listed Companies of the Shenzhen Stock Exchange
• U-tour Travel (002707)_Historical Top-Trader Data
• U-tour Travel (002707) Latest Developments_F10_Tonghuashun Financial Services
• U-tour Travel (SZ002707) Share Price, Market Data, Financial Reports and Data Reports - Xueqiu
• U-tour Travel (002707.SZ) Share Price, Historical Data and Major-Fund Flows - Dabolang Data
• U-tour Travel (002707) - Historical Trading Data | Dabanke
• U-tour Travel (002707)_Company Announcements_U-tour Travel: 2026 Interim Report_Sina Finance

This report was automatically searched, compiled and generated by AI based on publicly available information. Information is current as of the close on September 11, 2026; technical indicators are calculated using unadjusted daily data and may differ due to timing. Specific data should be based on the company’s official announcements and authoritative data terminals. This report is provided solely for information organization and research reference and does not constitute investment advice. Investors should make independent judgments and bear investment risks themselves.