Beijing North Star Company (0588) AI Stock Analysis

• Market Cap: HK$5.91B
• Dividend Yield: N/A
• Average Volume (3M): 11.65M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• 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): N/A
• Shares Outstanding: 707,020,000
• 10 Day Avg. Volume: 8,177,200
• 30 Day Avg. Volume: 11,654,400
• PEG Ratio: <0.01
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 2.86
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: HK$0.76 ▼(-1.17% Downside)

The overall stock score reflects significant financial challenges, with declining revenues and persistent losses impacting profitability. Technical indicators show a lack of strong momentum, and valuation metrics are concerning due to negative earnings. The dividend yield offers some appeal, but financial stability remains a key risk.

Positive Factors

Recurring rental income

The company generates recurring income from leasing and operating commercial investment properties. Stable rental cash flows diversify reliance on one-time development sales, providing a predictable revenue base that supports operations and debt servicing over the medium term.

Positive free cash flow (TTM)

Positive free cash flow in the trailing twelve months shows the business can generate surplus cash after capex. This supports funding of working capital and maintenance capex without immediate external financing, improving resilience during multi-quarter revenue recovery phases.

Gross margin around 24.7%

A mid-20% gross margin indicates the company retains a material share of revenue after direct costs, reflecting some pricing power or cost control in development and property operations. This margin base helps potential recovery in operating profitability if top-line trends stabilize.

Negative Factors

Declining revenue and persistent net losses

Sustained revenue contraction alongside repeated net losses erodes equity and limits retained earnings, constraining reinvestment and strategic initiatives. Over several quarters this undermines the company's ability to restore profitability and maintain long-term operational plans.

High financial leverage

A debt-to-equity ratio near 1.6 and low equity ratio increase sensitivity to interest rate rises and refinancing risk. High leverage reduces financial flexibility, forces greater cash allocation to interest, and can limit capacity for redevelopment or strategic investments over the medium term.

Deteriorating operating cash flow

A marked decline in operating cash flow signals weakening core cash generation from property operations and sales. Continued deterioration can pressure liquidity, may necessitate asset sales or additional borrowing, and reduces the firm's buffer against multi-quarter downturns.

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 generates revenue primarily through the sale and leasing of properties developed under its real estate division. Key revenue streams include residential and commercial property sales, rental income from managed properties, and service fees from property management operations. The company also benefits from strategic partnerships with local governments and joint ventures with other firms in the real estate sector, which provide opportunities for large-scale developments and access to prime land. Additionally, revenues are supplemented by investments in cultural tourism projects, which align with China's growing focus on urban development and tourism.

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. Operational inefficiencies and leverage concerns need to be addressed to improve financial stability.

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: Neutral
• Last Price: 0.77
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 0.77 is below the 20-day moving average (MA) of 0.78, below the 50-day MA of 0.79, and below the 200-day MA of 0.83, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.11 is Neutral, neither overbought nor oversold. The STOCH value of 57.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0081	54 Neutral	HK$9.40B	24.72	1.10%	0.50%	-24.86%	-76.06%
3380	52 Neutral	HK$8.07B	-1.11	-32.71%	―	-72.07%	23.46%
0272	52 Neutral	HK$5.53B	32.24	0.42%	13.43%	41.24%	-39.89%
0173	46 Neutral	HK$8.20B	27.78	0.73%	3.32%	66.68%	-38.14%
0588	45 Neutral	HK$5.91B	-0.64	-41.74%	―	-44.25%	-406.20%
0119	45 Neutral	HK$8.98B	534.09	0.04%	0.98%	22.28%	-98.68%

Beijing North Star Company Corporate Events

Beijing North Star Shareholders Approve Appointment of New Executive Director at 2026 EGM

Beijing North Star Company Limited announced the poll results of its first extraordinary general meeting of 2026, held in Beijing on 23 January, where shareholders representing just over 36% of the company’s issued share capital were present or represented. The sole ordinary resolution, concerning the election of a new executive director, was duly passed with 99.34% of votes cast in favour, and the meeting procedures were confirmed by independent legal counsel as compliant with relevant laws, regulations and the company’s Articles of Association. As a result, Mr. Zhu Yan has been appointed as an executive director for the remainder of the tenth board’s term, expanding the executive director cohort to six members and potentially strengthening the company’s leadership structure and governance capacity.

The most recent analyst rating on (HK:0588) stock is a Hold with a HK$0.75 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 Sets Out Board Line-Up and Committee Roles

Beijing North Star Company Limited has announced the current composition of its board of directors, comprising six executive directors and three independent non-executive directors, underscoring the presence of independent oversight in its governance structure. The company has also detailed the membership and chairmanship of its five key board committees—Audit, Nomination, Remuneration and Evaluation, Strategic, and Legal Compliance—highlighting the central roles played by independent non-executive directors in leading the Audit, Nomination, and Remuneration and Evaluation Committees, which signals an emphasis on corporate governance, regulatory compliance and strategic oversight that is significant for investors and other stakeholders monitoring board independence and risk management.

The most recent analyst rating on (HK:0588) stock is a Hold with a HK$0.75 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 Warns of Continued Multi-Billion Yuan Loss for 2025

Beijing North Star Company Limited has warned investors that it expects to remain in the red for the financial year ending 31 December 2025, with net loss attributable to owners projected at between RMB2.696 billion and RMB3.38 billion under Hong Kong Financial Reporting Standards. Excluding fair value changes in investment properties, the loss is estimated at RMB2.463 billion to RMB3.093 billion, while the loss after also stripping out non-recurring items is forecast at RMB2.513 billion to RMB3.153 billion, all indicating continued substantial losses broadly in line with the RMB2.99 billion loss recorded in 2024. The company highlighted an estimated year-end cash balance of about RMB7.1 billion and described its capital reserves and financing channels as sufficient for stable operations, but urged shareholders and potential investors to exercise caution when dealing in its securities until the audited 2025 annual results are released.

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 Calls January EGM to Elect New Executive Director

Beijing North Star Company Limited has called its first extraordinary general meeting of 2026 for 23 January in Beijing, with shareholders invited to vote on the proposed election of Mr. Zhu Yan as an executive director to the company’s tenth board session. The meeting will use a cumulative voting system, and detailed arrangements have been set out for proxy appointments, shareholder identification, poll procedures and share registration deadlines, underlining the company’s adherence to Hong Kong listing rules and its ongoing board renewal and corporate governance processes.

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 Proposes Elevation of Chief Accountant Zhu Yan to Executive Director

Beijing North Star Company Limited has proposed the appointment of its chief accountant and current board secretary, 50-year-old Zhu Yan, as an executive director, subject to shareholder approval at an upcoming extraordinary general meeting. Zhu brings extensive experience in corporate financial and investment management, notably from senior finance and strategic roles at BBMG Corporation and its affiliates, and his elevation to the board is expected to strengthen the company’s financial governance and strategic planning capabilities; shareholders will be asked to confirm both his directorship and related remuneration for the remaining term of the current board session.

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.