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

• Market Cap: HK$1.38B
• Dividend Yield: 9.78%
• Average Volume (3M): 418.47K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.62
• Revenue Growth: -7.04%
• EPS Growth: -6.89%
• Country: HK
• Employees: 954
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.09
• Shares Outstanding: 1,014,516,000
• 10 Day Avg. Volume: 150,700
• 30 Day Avg. Volume: 418,466
• PEG Ratio: -0.63
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 1.77
• P/FCF Ratio: 6.81
• 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: 75 Outperform
• Price Target: HK$1.50 ▲(10.29% Upside)

E-Star Commercial Management Company Limited demonstrates strong financial performance with consistent revenue growth and profitability, though recent cash flow issues warrant attention. The stock's valuation is attractive with a low P/E ratio and high dividend yield. Technical indicators suggest a neutral market sentiment, with no strong momentum in either direction.

Positive Factors

Strong Balance Sheet

A strong balance sheet with a high equity ratio indicates financial stability and the ability to withstand economic fluctuations, supporting long-term growth.

Profitability

Despite a slight decrease, maintaining a strong net profit margin reflects effective cost management and the ability to generate profits, which is crucial for sustainable growth.

Revenue Growth

Consistent revenue growth indicates successful business operations and market demand, which are essential for long-term business expansion and competitiveness.

Negative Factors

Cash Flow Challenges

Lack of operating cash flow can hinder the company's ability to fund operations and invest in growth, posing a risk to financial health if not addressed.

Margin Compression

Decreasing gross profit margins suggest rising costs or pricing pressures, which could impact profitability if the trend continues.

Revenue Decline

A negative revenue growth rate indicates declining sales, which could signal weakening market position or demand, affecting long-term viability.

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 revenue primarily through property management fees, leasing commissions, and consultancy services. The company charges property owners and developers management fees for overseeing their commercial properties, which typically include maintenance, tenant relations, and operational oversight. Additionally, E-Star earns income from leasing commissions when it facilitates rental agreements between property owners and tenants. The consultancy arm of the business provides strategic advice and planning services, further contributing to its revenue. Significant partnerships with property developers and real estate investors allow E-Star to expand its portfolio and enhance its service offerings, which in turn drives earnings growth.

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.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	614.99M	644.54M	635.01M	561.85M	572.21M	441.95M
Gross Profit	284.71M	297.91M	333.56M	313.04M	330.43M	248.63M
EBITDA	242.81M	241.47M	323.65M	259.04M	263.60M	186.67M
Net Income	152.27M	154.47M	171.10M	154.28M	184.92M	126.84M
Balance Sheet
Total Assets	2.29B	2.28B	2.32B	2.14B	1.43B	441.18M
Cash, Cash Equivalents and Short-Term Investments	1.37B	1.37B	1.43B	1.26B	1.26B	329.57M
Total Debt	676.23M	669.42M	695.41M	690.53M	68.73M	73.41M
Total Liabilities	1.03B	1.02B	1.05B	961.15M	293.70M	277.93M
Stockholders Equity	1.26B	1.25B	1.26B	1.15B	1.12B	159.75M
Cash Flow
Free Cash Flow	134.49M	167.68M	298.04M	157.84M	182.55M	131.81M
Operating Cash Flow	134.71M	168.22M	299.34M	161.93M	199.76M	133.66M
Investing Cash Flow	222.50M	190.34M	-152.60M	-4.22M	-667.12M	-117.17M
Financing Cash Flow	-192.42M	-194.87M	-85.72M	-118.17M	772.05M	-8.74M

E-Star Commercial Management Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1.36 is below the 20-day moving average (MA) of 1.37, above the 50-day MA of 1.35, and above the 200-day MA of 1.27, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.96 is Neutral, neither overbought nor oversold. The STOCH value of 37.78 is Neutral, 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
3658	78 Outperform	HK$1.60B	6.44	18.19%	9.85%	10.09%	2.39%
6668	75 Outperform	HK$1.38B	8.39	12.19%	9.78%	-7.04%	-6.89%
9909	72 Outperform	HK$1.63B	7.40	6.08%	―	-4.36%	-48.52%
2205	66 Neutral	HK$840.00M	19.97	5.26%	4.83%	-5.08%	27.33%
6989	66 Neutral	HK$1.01B	3.20	7.55%	16.80%	-0.79%	-3.46%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
9983	63 Neutral	HK$792.56M	3.34	11.48%	17.48%	-2.61%	―

E-Star Commercial Management Company Limited Corporate Events

E-Star Commercial Management Signs New Framework Agreements to Boost Operations

E-Star Commercial Management Company Limited has announced the signing of five new framework agreements, effective from January 1, 2026, to December 31, 2028. These agreements, which include commercial property operational services, tenant management, sales referral, procurement, and sublease, are expected to impact the company’s operations significantly. The agreements are categorized into exempt and non-exempt based on applicable percentage ratios under the Listing Rules, with the non-exempt agreements requiring independent shareholder approval. This strategic move is likely to strengthen E-Star’s industry positioning and operational capabilities.