E-Star Commercial Management Company Limited (6668) AI Stock Analysis

• Market Cap: HK$1.33B
• Dividend Yield: 12.67%
• Average Volume (3M): 368.17K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.70
• Revenue Growth: -0.26%
• EPS Growth: -11.41%
• Country: HK
• Employees: 954
• Sector: Real Estate
• Sector Strength: 55
• Industry: Real Estate - Services
• EPS (TTM): 0.07
• Shares Outstanding: 1,014,516,000
• 10 Day Avg. Volume: 435,600
• 30 Day Avg. Volume: 368,166
• PEG Ratio: -1.23
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.60
• 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: 77 Outperform
• Price Target: HK$1.50 ▲(14.50%Upside)

E-Star Commercial Management Company Limited is rated strongly due to its robust financial performance and attractive valuation. The main risks include cash flow challenges and technical indicators suggesting the stock may be overbought. These factors are balanced by the company's solid growth and attractive dividend yield.

E-Star Commercial Management Company Limited Business Overview & Revenue Model

Company Description

E-Star Commercial Management Company Limited, an investment holding company, provides commercial property operational services to owners or tenants in respect of commercial properties in the People's Republic of China. It operates through three segments: Entrusted Management Service Model; Brand and Management Output Service Model; and Sublease Service Model. The company offers positioning, construction consultancy, and tenant sourcing services, which primarily include market positioning, business planning consultancy, design and construction consultancy, and tenant sourcing; and operational management services principally comprising formulating operation strategies, conducting marketing and promotional events, tenant and property management, and rent collection. It also provides property leasing services, such as sublease of commercial spaces in the commercial properties managed under the sublease service model to tenants; value-added services primarily consisting of management of common areas in the shopping centers, which customers could rent for a short period for pop-up shops and promotional settings, and management of advertising spaces, such as LED boards and interior and exterior facades of the shopping centers; and leases commercial spaces to tenants. The company offers commercial property operational services under the COCO Park, COCO City, COCO Garden, iCO, and Top Living brands. It serves shopping centers, and streets and commercial complexes. As of December 31, 2021, the company offered operation services to a total of 84 commercial property projects located in 25 cities. The company was founded in 2004 and is based in Shenzhen, the People's Republic of China. E-Star Commercial Management Company Limited is a subsidiary of Go Star Investment Holding Limited.

How the Company Makes Money

E-Star Commercial Management Company Limited generates its revenue primarily through property management fees and service charges associated with the management of commercial properties. The company earns income by providing property management services, including leasing activities, tenant management, and facilities maintenance. Additionally, E-Star may receive revenue from consulting services provided to property owners and developers, as well as from strategic partnerships and collaborations with real estate investors and other stakeholders in the commercial property sector.

E-Star Commercial Management Company Limited Financial Statement Overview

Summary

E-Star Commercial Management Company Limited exhibits solid overall financial health with consistent revenue growth and strong profitability, supported by a robust balance sheet. However, recent cash flow challenges highlight the need for careful cash management moving forward. The financials reflect a stable position in the real estate services industry, with opportunities for further growth if cash flow issues are addressed.

Income Statement

The company has demonstrated consistent revenue growth over the years, with a notable increase from 2019 to 2023. The gross profit margin remains healthy at 46.21% in 2024, although it decreased from 52.54% in 2023, indicating some pressure on gross profitability. Net profit margin decreased slightly from 26.94% in 2023 to 23.96% in 2024, which is still strong but shows a slight reduction in net profitability. Overall, the company shows strong revenue growth and profitability, albeit with some margin compression.

Balance Sheet

The balance sheet is robust with a healthy equity ratio of 54.73% in 2024, indicating strong capitalization. The debt-to-equity ratio is relatively conservative at 0.54, reflecting manageable leverage. Return on equity (ROE) is moderate at 12.39%, showing effective use of equity to generate profits. The company maintains strong liquidity with substantial cash reserves, ensuring financial stability.

Cash Flow

The absence of operating cash flow in 2024 is a concern, contrasting with the substantial operating cash flow in prior years. Free cash flow was strong in 2023 but is not available for 2024, raising caution about cash generation capacity in the latest period. Despite this, past performance indicates effective cash flow management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	644.54M	635.01M	561.85M	572.21M	441.95M
Gross Profit	297.91M	333.56M	313.04M	330.43M	248.63M
EBITDA	241.47M	323.65M	259.04M	263.60M	186.67M
Net Income	154.47M	171.10M	154.28M	184.92M	126.84M
Balance Sheet
Total Assets	2.28B	2.32B	2.14B	1.43B	441.18M
Cash, Cash Equivalents and Short-Term Investments	1.37B	1.43B	1.26B	1.26B	329.57M
Total Debt	669.42M	695.41M	690.53M	68.73M	73.41M
Total Liabilities	1.02B	1.05B	961.15M	293.70M	277.93M
Stockholders Equity	1.25B	1.26B	1.15B	1.12B	159.75M
Cash Flow
Free Cash Flow	167.68M	298.04M	157.84M	182.55M	131.81M
Operating Cash Flow	168.22M	299.34M	161.93M	199.76M	133.66M
Investing Cash Flow	190.34M	-152.60M	-4.22M	-667.12M	-117.17M
Financing Cash Flow	-194.87M	-85.72M	-118.17M	772.05M	-8.74M

E-Star Commercial Management Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6668, the sentiment is Positive. The current price of 1.31 is above the 20-day moving average (MA) of 1.29, above the 50-day MA of 1.25, and above the 200-day MA of 1.19, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 63.20 is Neutral, neither overbought nor oversold. The STOCH value of 86.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6668.

E-Star Commercial Management Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6989	80 Outperform	HK$1.81B	5.34	8.56%	8.49%	5.84%	0.84%
3658	79 Outperform	HK$1.64B	6.69	18.89%	8.22%	15.31%	3.39%
6668	77 Outperform	HK$1.33B	7.92	12.36%	12.67%	-0.26%	-11.41%
9909	75 Outperform	HK$1.54B	6.52	6.90%	13.76%	-2.53%	-53.46%
2205	73 Outperform	HK$483.00M	9.20	6.75%	8.41%	0.99%	18.86%
9983	65 Neutral	HK$1.47B	6.22	10.96%	13.03%	1.88%	―
Sector *	64 Neutral	$6.97B	18.61	-1.93%	6.82%	4.65%	-25.39%

E-Star Commercial Management Company Limited Corporate Events

E-Star Commercial Management Enhances Governance with New Nomination Committee

E-Star Commercial Management Company Limited has established a Nomination Committee, primarily composed of independent non-executive directors, to oversee the nomination process for board members. This move is designed to enhance the governance structure of the company, ensuring diversity and independence in its board appointments, which may positively impact its operational transparency and stakeholder confidence.

E-Star Commercial Management Announces Successful AGM Resolutions

E-Star Commercial Management Company Limited, a company incorporated in the Cayman Islands, announced the successful passage of all resolutions at its Annual General Meeting held on June 6, 2025. The resolutions included the adoption of financial statements, declaration of a final dividend, and re-election of directors. The poll results showed overwhelming support for each resolution, indicating strong shareholder confidence in the company’s governance and strategic direction.

E-Star Commercial Management Announces Annual General Meeting Agenda

E-Star Commercial Management Company Limited has scheduled its annual general meeting for June 6, 2025, in Shenzhen, China. Key agenda items include the adoption of financial statements for 2024, declaration of a final dividend of HK$8.3 cents per share, re-election of directors, and re-appointment of Deloitte Touche Tohmatsu as auditors. The meeting will also consider authorizing the board to issue additional shares, which could impact the company’s capital structure and shareholder value.