Beijing North Star Company (0588) AI Stock Analysis

• Market Cap: HK$6.14B
• Dividend Yield: 2.34%
• Average Volume (3M): 61.37M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.01
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 5,115
• Sector: Real Estate
• Sector Strength: 61
• Industry: Real Estate - Development
• EPS (TTM): N/A
• Shares Outstanding: 707,020,000
• 10 Day Avg. Volume: 65,857,796
• 30 Day Avg. Volume: 61,368,864
• PEG Ratio: 0.43
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.67
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$0.47
• Price Target Upside: -49.90% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• 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 Business Overview & Revenue Model

Company Description

Beijing 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 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

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

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

Beijing North Star Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0081	64 Neutral	HK$7.12B	6.88	3.05%	2.75%	-20.27%	-59.83%
0119	56 Neutral	HK$6.34B	31.41	0.53%	0.88%	-3.13%	-87.57%
0272	54 Neutral	$6.33B	32.38	0.47%	18.31%	-18.65%	-78.51%
Sector *	54 Neutral	$1.23B	3.75	0.67%	6.15%	-2.39%	-129.28%
0588	51 Neutral	HK$6.14B	―	-26.83%	2.34%	―	―
3380	45 Neutral	HK$5.80B	―	-29.26%	―	-51.37%	29.94%
0173	44 Neutral	HK$6.81B	20.32	0.81%	2.31%	17.77%	-58.36%

Beijing North Star Company Corporate Events

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.

Beijing North Star Announces Executive Resignation

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

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

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

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

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.