Beijing Digital Telecom Co. Ltd. Class H (6188) AI Stock Analysis

• Market Cap: €288.10M
• Dividend Yield: N/A
• Average Volume (3M): 1.79M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: 2.88%
• EPS Growth: -84.93%
• Country: HK
• Employees: 2,733
• Sector: Consumer Cyclical
• Sector Strength: 62
• Industry: Specialty Retail
• EPS (TTM): -1.65
• Shares Outstanding: 548,760,400
• 10 Day Avg. Volume: 5,033,868
• 30 Day Avg. Volume: 1,790,822
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 44 Neutral
• Price Target: HK$0.50 ▲(66.67%Upside)

The overall stock score of 44.2 reflects significant financial performance challenges, notably declining revenue and profitability, negative equity, and liquidity issues. Although short-term technical indicators show some positive momentum, the company's valuation is heavily impacted by ongoing losses and lack of dividend yield, contributing to a low investor appeal.

Beijing Digital Telecom Co. Ltd. Class H Business Overview & Revenue Model

Company Description

Beijing Digital Telecom Co., Ltd. engages in the sale of mobile telecommunication devices and accessories, and provision of related services in Mainland China, Spain, Bangladesh, India, Romania, and Bulgaria. The company is involved in the sale of mobile telecommunication devices and accessories through independent stores and store-in-store outlets, stores in cooperation with the mobile carriers, and online sales platforms, as well as sales to its franchisees. It also distributes mobile telecommunication devices and accessories to mobile carriers and other third-party retailers. In addition, the company provides management services to suppliers of products; value-added services for software; repair and maintenance services; and personalized and after-sales services for mobile phones, as well as rents counter space to third parties who provide repair services. Further, it researches, develops, and manufactures telecommunication devices and accessories. As of December 31, 2021, the company operated approximately 800 independently operated outlets and franchised outlets in 22 provinces and 4 municipalities. Beijing Digital Telecom Co., Ltd. was founded in 1993 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Beijing Digital Telecom Co. Ltd. generates revenue through several key streams. The primary source of income is the sale of mobile phones and accessories in its retail outlets. The company benefits from strategic partnerships with major smartphone manufacturers, which allow it to offer a broad selection of popular devices. Apart from direct sales, the company earns commissions from telecommunications operators through the sale of mobile service packages, SIM cards, and mobile internet services. These partnerships enable Beijing Digital Telecom to offer bundled service deals, enhancing customer acquisition and retention. The company also leverages its extensive retail network to provide after-sales services, which include repair and maintenance, thereby adding another revenue stream.

Beijing Digital Telecom Co. Ltd. Class H Financial Statement Overview

Summary

Beijing Digital Telecom Co. Ltd. faces severe financial challenges. The income statement indicates declining revenue and significant net losses, with a poor gross profit margin of 3.72%. The balance sheet shows negative stockholders' equity, highlighting potential solvency concerns, while cash flows are worrisome with zero operating cash flow, suggesting liquidity issues.

Income Statement

The company is experiencing declining revenue and profitability, with a consistent net loss over recent years. The total revenue for the latest year was 18.02 billion, but net income further deteriorated to -1.37 billion. The gross profit margin is low at 3.72%, and the net profit margin is significantly negative, indicating challenges in cost control and sales effectiveness. The EBIT and EBITDA margins are both negative, showing operational inefficiencies.

Balance Sheet

The balance sheet reflects significant financial distress, with stockholders' equity turning negative at -1.32 billion, highlighting potential solvency issues. The debt-to-equity ratio cannot be calculated due to negative equity, but the high total debt of 8.88 billion suggests high leverage. The equity ratio is negative, indicating more liabilities than assets, further emphasizing financial instability.

Cash Flow

The cash flow situation is concerning, with zero operating cash flow in the latest year. Free cash flow is also zero, indicating an inability to generate cash from operations. Previously, the company had negative free cash flows, and there is no observable free cash flow growth. The lack of positive operating and free cash flows raises questions about the company's liquidity and ability to sustain operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.02B	17.15B	13.51B	10.24B	13.55B
Gross Profit	670.91M	781.35M	637.43M	575.79M	1.18B
EBITDA	-665.76M	-337.28M	56.90M	-3.71B	503.00M
Net Income	-1.37B	-630.04M	-279.14M	-3.60B	114.06M
Balance Sheet
Total Assets	10.40B	8.33B	7.06B	7.37B	9.35B
Cash, Cash Equivalents and Short-Term Investments	3.51B	1.16B	485.07M	195.62M	173.58M
Total Debt	8.88B	4.18B	2.92B	2.46B	3.06B
Total Liabilities	10.30B	8.29B	6.63B	6.66B	4.90B
Stockholders Equity	-1.32B	70.61M	428.56M	705.08M	4.29B
Cash Flow
Free Cash Flow	-154.58M	39.22M	-612.18M	-1.01B	297.38M
Operating Cash Flow	-132.37M	57.52M	-599.49M	-992.62M	315.03M
Investing Cash Flow	223.57M	-178.32M	10.32M	-30.48M	78.10M
Financing Cash Flow	2.50B	613.93M	721.44M	1.05B	-988.62M

Beijing Digital Telecom Co. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.30
• 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:6188, the sentiment is Negative. The current price of 0.3 is above the 20-day moving average (MA) of 0.27, above the 50-day MA of 0.29, and below the 200-day MA of 0.61, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 52.07 is Neutral, neither overbought nor oversold. The STOCH value of 25.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6188.

Beijing Digital Telecom Co. Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1861	75 Outperform	HK$369.59M	10.85	10.74%	2.28%	10.00%	-40.16%
Sector *	67 Neutral	¥266.96B	13.51	6.53%	2.53%	5.16%	-13.66%
6033	67 Neutral	HK$294.74M	13.04	4.61%	9.59%	-15.17%	-75.87%
1020	45 Neutral	HK$232.64M	―	-108.05%	―	-17.29%	-114.00%
6188	44 Neutral	€288.10M	―	-293.07%	―	2.88%	-84.93%
0620	―	HK$654.17M	―	-2.73%	―	―	―
8395	36 Underperform	HK$326.30M	29.86	31.07%	―	-13.93%	75.32%

Beijing Digital Telecom Co. Ltd. Class H Corporate Events

Beijing Digital Telecom Seeks Extended Waiver for Compliance with Listing Rules

Beijing Digital Telecom Co., Ltd. has applied for an extension of a waiver from strict compliance with certain listing rules on the Hong Kong Stock Exchange. This waiver pertains to the appointment of joint company secretaries and, if granted, will allow the current secretaries to continue in their roles while the application is reviewed, potentially impacting the company’s governance structure.

Beijing Digital Telecom’s AGM Sees Unanimous Approval of Key Resolutions

Beijing Digital Telecom Co., Ltd. announced the successful conclusion of its 2024 Annual General Meeting held on May 21, 2025, where all proposed resolutions were unanimously approved by shareholders. The resolutions included the approval of the annual report, financial report, profit distribution plan, and the re-appointment of Ernst & Young as the external auditor, as well as a guarantee provision for financing not exceeding RMB300 million, indicating strong shareholder support and stable governance.