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

• Market Cap: €487.55M
• Dividend Yield: N/A
• Average Volume (3M): 1.95M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• 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: 436,750
• 30 Day Avg. Volume: 1,952,783
• 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: €0.46
• Price Target Upside: -16.47% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 39 Underperform
• Price Target: HK$0.50 ▼(-9.09% Downside)

The overall stock score is heavily influenced by the company's poor financial performance, characterized by declining revenue, substantial losses, and liquidity issues. Technical analysis also indicates bearish momentum, with the stock approaching oversold levels. Valuation metrics are unattractive due to negative earnings and the absence of dividends. These factors collectively result in a low overall stock score.

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: 0.55
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.55 is below the 20-day moving average (MA) of 0.67, below the 50-day MA of 0.57, and below the 200-day MA of 0.55, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 42.02 is Neutral, neither overbought nor oversold. The STOCH value of 19.17 is Positive, 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	409.36M	6.52	0.00%	3.23%	17.38%	15.93%
6033	66 Neutral	302.81M	13.39	4.65%	9.72%	-3.00%	-59.89%
8395	63 Neutral	373.82M	34.20	4.38%	―	52.73%	0.00%
1020	52 Neutral	575.48M	-11.11	-53.47%	―	-37.11%	-223.08%
6188	39 Underperform	€487.55M	―	-293.07%	―	-4.97%	-92.27%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Beijing Digital Telecom Co. Ltd. Class H Corporate Events

Beijing Digital Telecom Announces Key Management Changes and Compliance Waiver

Beijing Digital Telecom Co., Ltd. has announced a change in its joint company secretary, authorized representative, and process agent roles. Ms. Ng Sau Mei has resigned from these positions, and Ms. Au Ching has been appointed as her replacement effective September 3, 2025. The company has also applied for an extension of a waiver from strict compliance with certain listing rules due to the changes in company secretary roles and the qualifications of Mr. Huang, who will continue in his current capacity. This change aims to enhance corporate governance standards, particularly with Ms. Au’s expertise in Hong Kong’s regulatory environment.

The most recent analyst rating on (HK:6188) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Beijing Digital Telecom Co. Ltd. Class H stock, see the HK:6188 Stock Forecast page.

Beijing Digital Telecom Reports Increased Losses Amid Revenue Decline

Beijing Digital Telecom Co., Ltd. reported a significant decline in its financial performance for the first half of 2025, with a 13.80% decrease in revenue to RMB8.22 billion and a substantial increase in net loss to RMB76.64 million, compared to the same period last year. This financial downturn reflects challenges in the market and may impact the company’s future operations and stakeholder confidence.

The most recent analyst rating on (HK:6188) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Beijing Digital Telecom Co. Ltd. Class H stock, see the HK:6188 Stock Forecast page.

Beijing Digital Telecom Co., Ltd. Proposes Governance Restructuring

Beijing Digital Telecom Co., Ltd. has announced a proposal to abolish its Board of Supervisors, transferring their responsibilities to the audit committee, in line with recent regulatory changes in China. The company also plans to amend its Articles of Association to facilitate hybrid shareholder meetings and electronic voting, reflecting a shift towards a more digital and streamlined governance structure.

The most recent analyst rating on (HK:6188) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Beijing Digital Telecom Co. Ltd. Class H stock, see the HK:6188 Stock Forecast page.

Beijing Digital Telecom Completes Full Utilization of H Share Proceeds

Beijing Digital Telecom Co., Ltd. announced the full utilization of net proceeds amounting to approximately HK$260.75 million from the subscription of H shares, which were allocated for general working capital, including the repayment of bank loans. This strategic financial maneuver, completed by the end of 2024, underscores the company’s commitment to strengthening its operational foundation and maintaining financial stability.

The most recent analyst rating on (HK:6188) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Beijing Digital Telecom Co. Ltd. Class H stock, see the HK:6188 Stock Forecast page.

Beijing Digital Telecom Anticipates Increased Loss Amidst 3C Industry Competition

Beijing Digital Telecom Co., Ltd. has announced an anticipated increase in net loss for the first half of 2025, expecting a loss of up to RMB80 million compared to RMB29.27 million in the same period of 2024. This increase is attributed to intensified competition in the 3C industry, leading to a decrease in overall gross profit. The company is still finalizing its results, and the figures are based on preliminary unaudited accounts, with final results to be announced on August 27, 2025.

The most recent analyst rating on (HK:6188) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Beijing Digital Telecom Co. Ltd. Class H stock, see the HK:6188 Stock Forecast page.

Beijing Digital Telecom Schedules Board Meeting for Interim Results

Beijing Digital Telecom Co., Ltd. has announced a board meeting scheduled for August 27, 2025, to review and approve the company’s interim financial results for the first half of the year. This meeting is significant as it will provide insights into the company’s financial health and performance, potentially impacting its market positioning and stakeholder confidence.

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.