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

• Market Cap: HK$376.75M
• Dividend Yield: N/A
• Average Volume (3M): 344.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: -4.97%
• EPS Growth: -92.27%
• Country: HK
• Employees: 2,733
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.09
• Shares Outstanding: 548,760,400
• 10 Day Avg. Volume: 478,200
• 30 Day Avg. Volume: 344,416
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.46
• Price to Sales (P/S): 0.03
• P/FCF Ratio: -3.93
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: HK$0.48 ▲(14.29% Upside)

The overall stock score is primarily impacted by the company's significant financial challenges, including declining revenue, substantial losses, and liquidity issues. Technical analysis provides some short-term positive momentum, but it is overshadowed by negative MACD and valuation concerns due to a negative P/E ratio. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

5G Technology Demand

The increasing demand for 5G technology positions the company to expand its infrastructure and service capabilities, supporting long-term growth.

Strategic Partnerships

Collaborations with tech firms enhance service offerings, potentially attracting more customers and driving sustainable revenue growth.

Innovation Focus

Commitment to innovation and digital transformation can lead to the development of new services, maintaining competitive advantage in the telecom sector.

Negative Factors

Declining Revenue

A consistent decline in revenue suggests challenges in maintaining market share and competitiveness, impacting long-term financial health.

Negative Equity

Negative equity indicates potential solvency issues, limiting the company's ability to invest in growth and sustain operations.

Liquidity Problems

Lack of cash generation from operations raises concerns about liquidity and the ability to fund ongoing business activities, threatening long-term viability.

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

Company Description

Beijing Digital Telecom Co. Ltd. Class H (6188) is a leading telecommunications and technology company based in China, specializing in providing a wide range of digital communication services. The company operates primarily in the telecommunications sector, offering services such as mobile communications, internet services, and value-added services. With a focus on innovation and digital transformation, Beijing Digital Telecom aims to deliver high-quality connectivity solutions and advanced technology applications to both individuals and businesses.

How the Company Makes Money

Beijing Digital Telecom generates revenue through multiple key streams, primarily from its core telecommunications services, including mobile voice and data plans, internet broadband services, and enterprise communication solutions. The company also earns income from value-added services such as mobile payment solutions, cloud computing, and digital content distribution. Additionally, strategic partnerships with technology firms and content providers enhance its service offerings and attract more customers. The growing demand for 5G technology and digital transformation in various sectors further contributes to the company's financial growth, as it expands its infrastructure and service capabilities to meet evolving market needs.

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

Summary

Beijing Digital Telecom Co. Ltd. exhibits significant financial challenges across all major financial statements. The income statement reveals a trend of declining revenue and substantial losses. The balance sheet shows negative equity, indicating potential solvency issues and high financial leverage. The cash flow statement underscores liquidity problems, with negligible cash generated from operations. These factors collectively point to a precarious financial position requiring strategic intervention to stabilize financial health.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.70B	18.02B	17.15B	13.51B	10.24B	13.55B
Gross Profit	634.63M	670.91M	781.35M	637.43M	575.79M	1.18B
EBITDA	-698.06M	-665.76M	-337.28M	56.90M	-3.71B	503.00M
Net Income	-1.42B	-1.37B	-630.04M	-275.58M	-3.57B	114.06M
Balance Sheet
Total Assets	9.48B	10.40B	8.33B	7.06B	7.37B	9.35B
Cash, Cash Equivalents and Short-Term Investments	1.87B	3.51B	1.16B	485.07M	195.62M	173.58M
Total Debt	8.35B	8.88B	4.18B	2.92B	2.46B	3.06B
Total Liabilities	9.46B	10.30B	8.29B	6.63B	6.66B	4.90B
Stockholders Equity	-1.40B	-1.32B	70.61M	428.56M	705.08M	4.29B
Cash Flow
Free Cash Flow	-61.93M	-154.58M	39.22M	-612.18M	-1.01B	297.38M
Operating Cash Flow	-42.97M	-132.37M	57.52M	-599.49M	-992.62M	315.03M
Investing Cash Flow	194.83M	223.57M	-178.32M	10.32M	-30.48M	78.10M
Financing Cash Flow	2.92B	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: 0.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 0.42 is below the 20-day moving average (MA) of 0.45, below the 50-day MA of 0.47, and below the 200-day MA of 0.47, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 39.21 is Neutral, neither overbought nor oversold. The STOCH value of 47.62 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	79 Outperform	HK$463.16M	7.37	17.60%	2.74%	17.38%	15.93%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8395	61 Neutral	HK$331.06M	28.10	35.74%	―	125.71%	―
6033	60 Neutral	HK$246.29M	64.89	0.78%	8.20%	1.69%	-81.96%
1020	51 Neutral	HK$822.33M	-12.62	-363.59%	―	-37.11%	-223.08%
6188	42 Neutral	HK$376.75M	-0.24	―	―	-4.97%	-92.27%
0620	39 Underperform	HK$424.54M	-12.81	-3.08%	―	-33.28%	91.18%

Beijing Digital Telecom Co. Ltd. Class H Corporate Events

Beijing Digital Telecom Co., Ltd. Forms Audit Committee to Strengthen Governance

Beijing Digital Telecom Co., Ltd. has established an Audit Committee comprising non-executive directors, with a majority being independent non-executive directors. The committee is tasked with ensuring compliance with the Listing Rules of The Stock Exchange of Hong Kong Limited, and it will meet quarterly to oversee the company’s financial practices and governance. This move is likely to enhance the company’s transparency and accountability, potentially boosting stakeholder confidence.

Beijing Digital Telecom Co., Ltd. Announces Key Changes Following EGM

Beijing Digital Telecom Co., Ltd. announced the successful conclusion of its Extraordinary General Meeting (EGM) held on October 21, 2025, where all proposed resolutions were passed. Key decisions included the election of Mr. Liu Liang as an executive director, the abolishment of the Board of Supervisors, and amendments to the Articles of Association and procedural rules. These changes are expected to impact the company’s governance structure and operational procedures significantly.

Beijing Digital Telecom Announces Board Composition and Committee Roles

Beijing Digital Telecom Co., Ltd. has announced the composition of its Board of Directors, which includes a mix of executive, non-executive, and independent non-executive directors. The Board has also established four committees, each with designated members, to oversee various aspects of the company’s governance and strategic planning.

Beijing Digital Telecom Announces Key Governance Changes at 2025 EGM

Beijing Digital Telecom Co., Ltd. has announced its first extraordinary general meeting for 2025, scheduled for October 21st. The meeting will address several key resolutions, including the election of a new executive director, the abolishment of the Board of Supervisors, and proposed amendments to the company’s Articles of Association and procedural rules. These changes are aimed at streamlining governance and enhancing operational efficiency, potentially impacting the company’s strategic direction and stakeholder engagement.

Beijing Digital Telecom Highlights Receivables and Impairment in 2024 Report

Beijing Digital Telecom Co., Ltd. has released a supplemental announcement to its annual report for the year ending December 31, 2024, highlighting the ageing profile of its guaranteed trade and other receivables. The company reported significant amounts of receivables with an ageing period of over three years, leading to a substantial provision for impairment losses. The announcement details the methodology for assessing impairment, including expected credit loss rates and forward-looking adjustments based on GDP growth scenarios. This approach reflects the company’s efforts to manage credit risk and maintain financial stability, which could impact its operational efficiency and stakeholder confidence.

Beijing Digital Telecom Announces Board Changes with New Executive Director Proposal

Beijing Digital Telecom Co., Ltd. announced the resignation of Mr. Xie Hui as a non-executive director and member of the strategy committee due to work adjustments, effective after the upcoming extraordinary general meeting (EGM). The company expressed gratitude for Mr. Xie’s contributions and confirmed no disagreements or issues with his departure. Concurrently, the company proposed the election of Mr. Liu Liang as an executive director and strategy committee member. Mr. Liu, who has held various management roles within the company and its subsidiaries, is expected to bring extensive operational management experience to his new role, pending approval at the EGM.