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

• Market Cap: HK$1.41B
• Dividend Yield: 9.42%
• Average Volume (3M): 425.20K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.67
• 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: 893,500
• 30 Day Avg. Volume: 425,200
• 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

• Rating: 75 Outperform
• Price Target: HK$1.50 ▲(9.49% Upside)

The company's strong financial performance and attractive valuation are the primary drivers of the stock score. While the technical analysis indicates a neutral trend, the low P/E ratio and high dividend yield suggest potential undervaluation. The absence of recent earnings call data and corporate events means these factors do not influence the score.

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

Company Description

E-Star Commercial Management Company Limited (6668) is a prominent player in the commercial management sector, primarily focusing on the management and operation of commercial properties and facilities. The company is involved in various sectors, including retail, office space, and mixed-use developments, offering services that encompass property management, leasing, and consultancy. With a commitment to enhancing property value and tenant satisfaction, E-Star distinguishes itself through its innovative management practices and strategic partnerships.

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 shows solid financial health with consistent revenue growth and strong profitability. The balance sheet is robust, but recent cash flow challenges highlight the need for careful cash management.

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: 1.37
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1.37 is below the 20-day moving average (MA) of 1.40, below the 50-day MA of 1.40, and above the 200-day MA of 1.27, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.63 is Neutral, neither overbought nor oversold. The STOCH value of 82.22 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
3658	78 Outperform	HK$1.62B	6.51	18.19%	9.56%	10.09%	2.39%
9909	77 Outperform	HK$1.70B	7.73	6.08%	―	-4.36%	-48.52%
6668	75 Outperform	HK$1.41B	8.57	12.19%	9.42%	-7.04%	-6.89%
2205	73 Outperform	HK$469.00M	11.15	5.26%	8.66%	-5.08%	27.33%
6989	66 Neutral	HK$1.31B	4.17	7.55%	13.40%	-0.79%	-3.46%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
9983	61 Neutral	HK$1.17B	4.98	11.48%	11.59%	-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.

The most recent analyst rating on (HK:6668) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on E-Star Commercial Management Company Limited stock, see the HK:6668 Stock Forecast page.

E-Star Commercial Management Declares Interim Dividend for 2025

E-Star Commercial Management Company Limited announced an interim cash dividend of HKD 0.05 per share for the six months ending June 30, 2025. This dividend reflects the company’s ongoing commitment to returning value to its shareholders and may impact its financial strategy and stakeholder relations as it continues to manage and enhance commercial property assets.

The most recent analyst rating on (HK:6668) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on E-Star Commercial Management Company Limited stock, see the HK:6668 Stock Forecast page.

E-Star Commercial Reports Revenue Decline but Maintains Profit Margin

E-Star Commercial Management Company Limited reported a revenue of approximately RMB284.2 million for the first half of 2025, marking a 9.4% decrease compared to the previous year. Despite the revenue drop, the company’s gross profit margin increased slightly to 52.3%, and it declared an interim dividend of HK5.0 cents per share. The profit attributable to the company’s owners decreased by 2.5% to RMB86.9 million, reflecting challenges in maintaining profitability amid declining revenue.

The most recent analyst rating on (HK:6668) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on E-Star Commercial Management Company Limited stock, see the HK:6668 Stock Forecast page.

E-Star Commercial Management to Review Interim Results and Dividend

E-Star Commercial Management Company Limited has scheduled a board meeting on August 28, 2025, to discuss and approve the interim financial results for the first half of the year and consider the declaration of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.