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Beijing North Star Company Class H (HK:0588)
:0588

Beijing North Star Company (0588) AI Stock Analysis

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HK

Beijing North Star Company

(OTC:0588)

Rating:49Neutral
Price Target:
HK$1.00
▲(6.38%Upside)
The overall stock score reflects significant financial challenges, particularly in profitability and leverage, which are major concerns. While technical analysis shows positive momentum, overbought conditions suggest caution. The company's negative valuation metrics further dampen the outlook, despite a modest dividend yield.

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 prominent real estate and investment holding company based in Beijing, China. Established in 1997, the company operates within two main sectors: real estate development and investment properties. Its core activities include the development, sales, and management of residential and commercial properties, as well as the operation of hotels, convention centers, and retail spaces.
How the Company Makes MoneyBeijing North Star Company generates revenue through several key streams. The primary source of income is the development and sale of residential and commercial properties, including apartments, villas, office spaces, and retail units. In addition to property sales, the company earns revenue from leasing and managing investment properties, such as shopping malls and office buildings. The company's hospitality division, which operates hotels and convention centers, contributes to its income through room bookings, event hosting, and related services. Furthermore, strategic partnerships and joint ventures in real estate projects can significantly enhance its revenue by expanding its market presence and sharing investment risks.

Beijing North Star Company Financial Statement Overview

Summary
Beijing North Star 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. The company must address operational inefficiencies and leverage concerns to improve financial stability and performance.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.62B7.15B15.75B12.99B22.09B18.00B
Gross Profit1.64B1.87B4.31B2.67B4.54B4.31B
EBITDA-1.60B-1.93B1.51B-333.58M1.42B1.78B
Net Income-2.95B-2.83B68.06M-1.65B99.16M575.98M
Balance Sheet
Total Assets47.30B48.84B56.23B67.28B79.70B86.44B
Cash, Cash Equivalents and Short-Term Investments6.97B7.91B9.44B9.64B14.72B13.05B
Total Debt15.15B15.65B14.99B26.57B31.52B31.99B
Total Liabilities35.85B37.07B40.70B51.32B60.40B66.71B
Stockholders Equity9.40B9.70B12.85B12.79B15.46B17.05B
Cash Flow
Free Cash Flow1.16B832.31M1.18B3.75B5.95B-78.53M
Operating Cash Flow460.53M973.64M1.39B4.00B6.94B251.51M
Investing Cash Flow2.63M-29.59M55.04M-225.98M-2.08B409.12M
Financing Cash Flow-2.76B-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
0.74
Positive
100DMA
0.73
Positive
200DMA
0.75
Positive
Market Momentum
MACD
0.04
Negative
RSI
76.82
Negative
STOCH
57.14
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 0.94 is above the 20-day moving average (MA) of 0.78, above the 50-day MA of 0.74, and above the 200-day MA of 0.75, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 76.82 is Negative, neither overbought nor oversold. The STOCH value of 57.14 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

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$6.01B30.740.47%4.80%-18.65%-78.51%
59
Neutral
HK$6.51B6.303.05%7.65%-20.27%-59.83%
53
Neutral
$1.21B3.28-0.13%7.06%-1.64%-127.47%
49
Neutral
HK$5.94B-26.83%2.34%
49
Neutral
$5.96B30.060.53%1.35%-3.13%-87.57%
44
Neutral
$6.40B19.100.81%4.93%17.77%-58.36%
42
Neutral
HK$5.06B-29.26%-51.37%29.94%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0588
Beijing North Star Company
0.92
0.28
43.75%
HK:0081
China Overseas Grand Oceans Group Limited
1.81
0.04
2.26%
HK:3380
Logan Property Holdings Co
0.91
0.19
26.39%
HK:0272
Shui On Land
0.75
0.12
18.30%
HK:0173
K Wah International Holdings
2.02
0.39
24.23%
HK:0119
Poly Property Group Co
1.55
0.10
7.04%

Beijing North Star Company Corporate Events

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.

Beijing North Star Updates Nomination Committee Procedures
Apr 23, 2025

Beijing North Star Company Limited has amended the rules of procedures for its Nomination Committee, a body under the Board of Directors responsible for formulating selection criteria and procedures for directors and senior management. The Committee, composed of three directors including two independent non-executive directors, is tasked with reviewing the Board’s structure and recommending candidates for directorships and senior management positions. These amendments aim to enhance the efficiency and scientific decision-making of the Committee, ensuring alignment with the company’s corporate strategy and compliance with relevant laws and regulations.

Beijing North Star Updates Board Committee Procedures
Apr 23, 2025

Beijing North Star Company Limited has amended its rules of procedures for the Remuneration and Evaluation Committee of its Board of Directors. The committee is tasked with formulating assessment standards and reviewing remuneration policies for directors and senior management, ensuring alignment with corporate governance codes and regulatory requirements. These changes are aimed at enhancing the efficiency and decision-making processes of the committee, potentially impacting the company’s governance and stakeholder relations.

Beijing North Star Company to Revamp Governance Structure Amid Regulatory Changes
Apr 23, 2025

Beijing North Star Company Limited has announced proposed amendments to its Articles of Association, following recent changes in Chinese Company Law and regulatory guidelines. The company plans to abolish its Supervisory Committee, transferring its duties to an audit committee, and update its procedures to allow hybrid general meetings and electronic voting, thereby enhancing shareholder rights and aligning with new regulatory requirements.

Beijing North Star Strengthens Board Committees with New Appointments
Apr 23, 2025

Beijing North Star Company Limited announced new appointments to its board committees, enhancing its governance structure. These changes include the appointment of Mr. YANG Hua-Sen to the Nomination Committee, Mr. ZHANG Jie and Ms. LIANG Jie to the Remuneration and Evaluation Committee, and Mr. HU Hao and Ms. LIANG Jie to the Legal Compliance Committee, with Ms. LIANG Jie as chairlady. These appointments are expected to strengthen the company’s strategic and compliance oversight, potentially impacting its operational efficiency and stakeholder confidence.

Beijing North Star Announces Board Composition and Roles
Apr 23, 2025

Beijing North Star Company Limited has announced the composition of its board of directors and their roles within various committees. This update reflects the company’s governance structure, potentially impacting its strategic direction and compliance oversight, which are crucial for stakeholders monitoring the company’s corporate governance practices.

Beijing North Star Updates Audit Committee Procedures to Enhance Governance
Apr 23, 2025

Beijing North Star Company Limited has amended its rules of procedures for the Audit Committee of its Board of Directors, effective April 2025. The committee, comprising three independent non-executive directors, is tasked with reviewing the company’s financial information, overseeing internal and external audits, and ensuring the integrity of financial statements. These changes aim to enhance the company’s governance structure, improve financial oversight, and strengthen internal controls, potentially impacting stakeholders by increasing transparency and accountability.

Beijing North Star Announces 2024 AGM and Financial Decisions
Apr 22, 2025

Beijing North Star Company Limited has announced its 2024 Annual General Meeting (AGM) to be held on May 15, 2025. The AGM will address several resolutions, including special resolutions on the estimation of the guarantee limit for 2025 and the granting of general mandates for the issuance of shares and debt financing instruments. Ordinary resolutions will cover the company’s 2024 financial report, board and supervisory committee reports, profit distribution scheme, and the re-appointment of auditors. Notably, due to a negative net profit for 2024, the company proposes not to distribute profits or implement any capital reserve fund conversion, reflecting a focus on long-term sustainable development.

Beijing North Star Schedules Board Meeting for Quarterly Results
Apr 11, 2025

Beijing North Star Company Limited announced that its board of directors will meet on April 29, 2025, to review and approve the company’s first quarterly results for the period ending March 31, 2025. This meeting will also address other business matters, potentially impacting the company’s operational strategies and stakeholder interests.

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 03, 2025