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Beijing North Star Company Class H (HK:0588)
:0588
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Beijing North Star Company (0588) AI Stock Analysis

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HK:0588

Beijing North Star Company

(OTC:0588)

Rating:51Neutral
Price Target:
HK$1.00
▲(6.38%Upside)
The overall stock score is primarily driven by technical analysis, which indicates positive market momentum. However, significant challenges in financial performance and valuation metrics weigh heavily on the score, reflecting the company's financial instability and high leverage. The dividend yield provides a minor positive aspect but is overshadowed by the risks associated with negative earnings.

Beijing North Star Company (0588) vs. iShares MSCI Hong Kong ETF (EWH)

Beijing North Star Company Business Overview & Revenue Model

Company DescriptionBeijing North Star Company Limited (0588) is a leading real estate and investment holding company based in Beijing, China. The company operates in two primary sectors: property development and investment, and commercial property operations. Its core services include the development and sale of residential properties, office buildings, and other real estate projects. Additionally, Beijing North Star Company is involved in property management services, providing comprehensive solutions for the upkeep and operation of commercial and residential properties.
How the Company Makes MoneyBeijing 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
Beijing North Star Company faces significant financial challenges, particularly 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. The company must address operational inefficiencies and leverage concerns to improve financial stability and performance in the real estate development sector.
Income Statement
35
Negative
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
50
Neutral
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
45
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.15B15.75B12.99B22.09B18.00B
Gross Profit1.87B4.31B2.67B4.54B4.31B
EBITDA-1.93B1.51B-333.58M1.42B1.78B
Net Income-2.83B68.06M-1.65B99.16M575.98M
Balance Sheet
Total Assets48.84B56.23B67.28B79.70B86.44B
Cash, Cash Equivalents and Short-Term Investments7.91B9.44B9.64B14.72B13.05B
Total Debt15.65B14.99B26.57B31.52B31.99B
Total Liabilities37.07B40.70B51.32B60.40B66.71B
Stockholders Equity9.70B12.85B12.79B15.46B17.05B
Cash Flow
Free Cash Flow832.31M1.18B3.75B5.95B-78.53M
Operating Cash Flow973.64M1.39B4.00B6.94B251.51M
Investing Cash Flow-29.59M55.04M-225.98M-2.08B409.12M
Financing Cash Flow-2.67B-1.33B-8.35B-2.73B-1.61B

Beijing North Star Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.94
Price Trends
50DMA
0.82
Positive
100DMA
0.77
Positive
200DMA
0.78
Positive
Market Momentum
MACD
0.04
Positive
RSI
54.98
Neutral
STOCH
9.76
Positive
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 0.94 is below the 20-day moving average (MA) of 0.95, above the 50-day MA of 0.82, and above the 200-day MA of 0.78, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 54.98 is Neutral, neither overbought nor oversold. The STOCH value of 9.76 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
HK$7.12B6.883.05%2.75%-20.27%-59.83%
56
Neutral
HK$6.34B31.410.53%0.88%-3.13%-87.57%
54
Neutral
$6.33B32.380.47%18.31%-18.65%-78.51%
54
Neutral
$1.23B3.750.67%6.15%-2.39%-129.28%
51
Neutral
HK$6.14B-26.83%2.34%
45
Neutral
HK$5.80B-29.26%-51.37%29.94%
44
Neutral
HK$6.81B20.320.81%2.31%17.77%-58.36%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0588
Beijing North Star Company
0.96
0.33
52.38%
HK:0081
China Overseas Grand Oceans Group Limited
2.04
0.53
35.10%
HK:3380
Logan Property Holdings Co
1.02
0.28
37.84%
HK:0272
Shui On Land
0.80
0.18
28.21%
HK:0173
K Wah International Holdings
2.22
0.57
34.14%
HK:0119
Poly Property Group Co
1.60
0.18
12.76%

Beijing North Star Company Corporate Events

Beijing North Star Projects Continued Losses for H1 2025
Jul 14, 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.

Beijing North Star Announces Executive Resignation
Jun 5, 2025

Beijing North Star Company Limited announced the resignation of Mr. HU Hao from his roles as executive director, deputy general manager, secretary to the Board, and other positions due to work rearrangement. The resignation will not affect the Board’s operations or its quorum, and Mr. MO Fei has been appointed to temporarily perform the duties of the secretary to the Board. The company will follow legal procedures to fill the vacancies promptly.

Beijing North Star Announces Board Composition and Roles
Jun 5, 2025

Beijing North Star Company Limited has announced the composition of its board of directors and their roles within the company. The board consists of both executive and independent non-executive directors, with members serving on various committees such as Audit, Nomination, Remuneration and Evaluation, Strategic, and Legal Compliance. This announcement highlights the company’s governance structure, which is crucial for maintaining strategic oversight and compliance, potentially impacting its operational efficiency and stakeholder confidence.

Beijing North Star Announces 2024 AGM Results and Strategic Resolutions
May 15, 2025

Beijing North Star Company Limited announced the results of its 2024 Annual General Meeting (AGM), where key resolutions were passed, including the estimation of a guarantee limit for 2025 and the issuance of shares and debt financing instruments. The AGM was conducted in compliance with relevant regulations, and the resolutions received overwhelming support from shareholders, indicating strong confidence in the company’s strategic direction.

Beijing North Star Reports Significant Revenue Decline in Q1 2025
Apr 29, 2025

Beijing North Star Company Limited has released its unaudited first quarterly report for 2025, showing a significant decline in operating revenue by 30.64% compared to the same period last year. The company reported a net loss attributable to its owners of RMB 294.9 million, reflecting ongoing challenges in its financial performance. Despite the downturn, the company assures stakeholders of the accuracy and completeness of its financial disclosures, maintaining transparency in its operations.

Beijing North Star Announces Supplemental Notice for 2024 AGM with Key Governance Changes
Apr 29, 2025

Beijing North Star Company Limited has announced a supplemental notice for its 2024 Annual General Meeting (AGM), scheduled for May 15, 2025. The notice includes additional special resolutions to amend the Articles of Association, abolish the Supervisory Committee, and revise the rules of procedures for both shareholders’ general meetings and board of directors’ meetings. This announcement is significant as it reflects the company’s efforts to streamline its governance structure and enhance operational efficiency, which could impact its strategic direction and stakeholder engagement.

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: Jul 16, 2025