Beijing North Star Company (0588) AI Stock Analysis

• Market Cap: $6.86B
• Dividend Yield: 2.32%
• Average Volume (3M): 22.76M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: -44.25%
• EPS Growth: -406.20%
• Country: HK
• Employees: 5,115
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -0.53
• Shares Outstanding: 707,020,000
• 10 Day Avg. Volume: 16,040,000
• 30 Day Avg. Volume: 22,757,513
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.90
• Enterprise Value/Revenue: 3.97
• Enterprise Value/Gross Profit: 16.25
• Enterprise Value/Ebitda: -9.47
• 1Y Price Target: $1.01
• Price Target Upside: 4.20% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: HK$1.00 ▲(3.09% Upside)

The overall stock score reflects significant financial challenges, including declining revenues and high leverage, which pose risks. Technical analysis shows mixed signals, with potential for a rebound. Valuation is hampered by negative earnings, though the dividend yield provides some appeal. Addressing operational inefficiencies and financial leverage is crucial for improvement.

Beijing North Star Company Business Overview & Revenue Model

Company Description

Beijing North Star Company Limited engages in the development and investment of properties and hotels in the People's Republic of China. It is involved in the property leasing, land and property development, property investment and management, and provision of food and beverage and trading services, as well as develops and sells residential units, apartments, villas, and offices and commercial buildings. The company also operates hotels, apartments, office buildings, restaurants, conference centers, and convention and exhibition centers. In addition, it provides multimedia information network development, system integration, software development, and investment management services; and hotel and restaurant management consulting services. Beijing North Star Company Limited was founded in 1997 and is based in Beijing, the People's Republic of China.

How the Company Makes Money

Beijing North Star Company makes money through several key revenue streams. The primary source of revenue is its property development segment, which involves the sale of developed residential and commercial real estate properties. This includes both large-scale and mixed-use developments. Another significant revenue stream comes from its commercial property operations, which include leasing space in office buildings, shopping centers, and hotels. The company also generates income from property management services, where it charges fees for the management and maintenance of properties. Beijing North Star may also engage in strategic partnerships and joint ventures to enhance its project development capabilities and expand its market reach, contributing to its overall earnings.

Beijing North Star Company Financial Statement Overview

Summary

The company faces significant financial challenges with declining revenues and persistent losses impacting profitability metrics. High leverage on the balance sheet increases financial risk, while cash flow management shows some resilience but is under pressure.

Income Statement

The income statement reveals significant challenges, notably a decline in revenue and persistent net losses. The revenue growth over the last year was negative with a contraction from previous periods indicating declining business performance. The gross profit margin for TTM is approximately 24.7%, showing some ability to manage costs relative to revenue. However, the net profit margin is severely negative at -44.5%, indicating substantial losses relative to revenue. The EBIT and EBITDA margins are also negative, illustrating challenges in operational profitability.

Balance Sheet

The balance sheet displays a moderate level of stability but with notable concerns. The debt-to-equity ratio is approximately 1.61, suggesting a relatively high leverage which poses risks in a rising interest rate environment. The equity ratio is around 19.9%, reflecting a moderate reliance on equity financing. Return on equity is negative due to losses, indicating inefficiencies in generating returns for shareholders. Overall, the balance sheet shows a company with financial leverage concerns that need to be addressed.

Cash Flow

The cash flow statement shows mixed signals. Operating cash flow is positive but has decreased significantly in the TTM period, showing challenges in cash generation from core activities. Free cash flow is positive for TTM, indicating some capacity to fund operations without external financing. However, the free cash flow to net income ratio is not meaningful due to the large net loss. The operating cash flow to net income ratio is also not favorably interpretable due to negative net income, highlighting potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.74B	7.15B	15.75B	12.99B	22.09B	18.00B
Gross Profit	1.65B	1.87B	4.31B	2.67B	4.54B	4.31B
EBITDA	-2.82B	-1.93B	1.51B	-333.58M	1.42B	1.78B
Net Income	-3.67B	-2.83B	68.06M	-1.65B	99.16M	575.98M
Balance Sheet
Total Assets	45.62B	48.84B	56.23B	67.28B	79.70B	86.44B
Cash, Cash Equivalents and Short-Term Investments	7.44B	7.91B	9.44B	9.64B	14.72B	13.05B
Total Debt	16.82B	15.65B	14.99B	26.57B	31.52B	31.99B
Total Liabilities	34.91B	37.07B	40.70B	51.32B	60.40B	66.71B
Stockholders Equity	8.11B	9.70B	12.85B	12.79B	15.46B	17.05B
Cash Flow
Free Cash Flow	1.14B	832.31M	1.18B	3.75B	5.95B	-78.53M
Operating Cash Flow	414.62M	973.64M	1.39B	4.00B	6.94B	251.51M
Investing Cash Flow	-102.10M	-29.59M	55.04M	-225.98M	-2.08B	409.12M
Financing Cash Flow	-2.20B	-2.67B	-1.33B	-8.35B	-2.73B	-1.61B

Beijing North Star Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0588, the sentiment is Positive. The current price of 0.97 is above the 20-day moving average (MA) of 0.91, above the 50-day MA of 0.92, and above the 200-day MA of 0.79, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 65.73 is Neutral, neither overbought nor oversold. The STOCH value of 69.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0588.

Beijing North Star Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0081	63 Neutral	9.18B	24.16	3.04%	3.88%	-24.86%	-76.06%
0272	58 Neutral	6.17B	35.98	0.47%	12.21%	40.20%	-39.89%
0588	46 Neutral	$6.86B	―	-37.02%	2.32%	-44.25%	-406.20%
0119	45 Neutral	6.69B	397.73	0.53%	1.20%	22.28%	-98.68%
3380	44 Neutral	6.37B	-0.87	-31.12%	―	-73.36%	23.46%
0173	44 Neutral	7.09B	24.04	0.00%	3.11%	66.68%	-38.14%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Beijing North Star Company Corporate Events

Beijing North Star Reports Increased Losses in 2025 Interim Results

Beijing North Star Company Limited reported a significant downturn in its financial performance for the first half of 2025, with revenue decreasing by 11.97% compared to the previous year. The company experienced an operating loss of RMB1,137,652,000, marking a substantial increase in losses from the same period last year. The core operating results, excluding changes in fair value, also showed increased losses, impacting the company’s financial stability and potentially affecting stakeholder confidence.

The most recent analyst rating on (HK:0588) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Beijing North Star Company stock, see the HK:0588 Stock Forecast page.

Beijing North Star Company Updates Nomination Committee Procedures

Beijing North Star Company Limited has amended its rules of procedures for the Nomination Committee of its Board of Directors. The updated procedures aim to enhance the efficiency and scientific decision-making of the Committee by clearly defining its duties and authorities. The Committee is responsible for formulating selection criteria and procedures for directors and senior management, evaluating candidates, and making recommendations on appointments and removals. This amendment is expected to strengthen the company’s governance structure and ensure alignment with its long-term strategy.

The most recent analyst rating on (HK:0588) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Beijing North Star Company stock, see the HK:0588 Stock Forecast page.

Beijing North Star Projects Increased Losses for First Half of 2025

Beijing North Star Company Limited has announced an estimated net loss for the first half of 2025, primarily due to expected losses from the revaluation of its investment properties. The net loss is projected to range from approximately RMB1,566,000,000 to RMB1,939,000,000, a significant increase compared to the same period in 2024. Despite these losses, which are non-cash in nature, the company states there will be no impact on its operating cash flow.

Beijing North Star Schedules Board Meeting for Interim Results and Dividend Decision

Beijing North Star Company Limited has scheduled a board meeting on August 22, 2025, to discuss and approve the interim results for the first half of the year and consider the payment of an interim dividend. This meeting could impact the company’s financial planning and stakeholder expectations, as it will address the company’s performance and potential shareholder returns.

Beijing North Star Appoints New Chief Accountant

Beijing North Star Company Limited has announced the appointment of Mr. ZHU Yan as the new chief accountant, effective from July 29, 2025. Mr. ZHU brings extensive experience in corporate financial management and investment management, having held various senior financial roles in prominent companies such as BBMG Corporation and its subsidiaries. This appointment is likely to enhance the company’s financial management capabilities and strategic planning, potentially impacting its operations and market positioning positively.

Beijing North Star Projects Continued Losses for H1 2025

Beijing North Star Company Limited has announced an estimated net loss for the first half of 2025, ranging from RMB1,401,000,000 to RMB1,791,000,000, excluding gains or losses from changes in the fair value of investment properties. Despite the continued losses, the company maintains a cash balance of approximately RMB7.4 billion, indicating sufficient capital reserves and clear financing channels for secure operations. Shareholders and potential investors are advised to exercise caution when dealing with the company’s securities.