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

• Market Cap: HK$274.80M
• Dividend Yield: N/A
• Average Volume (3M): 31.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.30
• Revenue Growth: 2.88%
• EPS Growth: -84.93%
• Country: HK
• Employees: 2,733
• Sector: Communication Services
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -1.65
• Shares Outstanding: 548,760,400
• 10 Day Avg. Volume: 26,700
• 30 Day Avg. Volume: 31,783
• PEG Ratio: 0.10
• Price to Book (P/B): 5.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.05
• 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: 23 Underperform
• Price Target: ―

The overall stock score for Beijing Digital Telecom Co. Ltd. is significantly impacted by its weak financial performance, characterized by declining revenue, substantial losses, and liquidity issues. These financial challenges are exacerbated by negative market sentiment as indicated by technical analysis, with the stock being oversold and trading below major moving averages. The valuation metrics further reflect the company's distressed state, with a negative P/E ratio and no dividend yield. Without positive earnings call data or corporate events to offset these negatives, the stock's risk profile remains high.

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

Company Description

Beijing Digital Telecom Co. Ltd. Class H (6188) is a leading provider of mobile telecommunications products and services in China. The company operates in the retail and distribution sector, focusing on the sale of mobile phones and related accessories. It also provides value-added services such as mobile phone repair, maintenance, and trade-in services. Beijing Digital Telecom has established a strong retail presence across China, including flagship stores, franchise locations, and online platforms.

How the Company Makes Money

Beijing Digital Telecom Co. Ltd. generates revenue primarily through the sale of mobile phones and related accessories. The company partners with major mobile phone manufacturers to distribute their products through its extensive retail network. Additionally, it earns money from offering value-added services, such as phone repairs, maintenance, and trade-in options, which enhance customer loyalty and drive repeat business. The company also leverages its online platforms to reach a broader customer base, contributing to its overall revenue. Key partnerships with leading mobile phone brands and telecommunications operators further bolster its market position and revenue streams.

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
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
	EBIT
-659.54M	184.99M	52.42M	-763.47M	288.92M
	EBITDA
-665.76M	-337.28M	56.90M	-3.71B	503.00M
	Net Income Common Stockholders
-1.37B	-630.04M	-279.14M	-3.60B	114.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.51B	1.16B	485.07M	195.62M	173.58M
	Total Assets
10.40B	8.33B	7.06B	7.37B	9.35B
	Total Debt
8.88B	4.18B	2.92B	2.46B	3.06B
	Net Debt
5.57B	3.46B	2.69B	2.36B	2.99B
	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
0.00	39.22M	-612.18M	-1.01B	297.38M
	Operating Cash Flow
0.00	57.52M	-599.49M	-992.62M	315.03M
	Investing Cash Flow
0.00	-178.32M	10.32M	-30.48M	78.10M
	Financing Cash Flow
0.00	613.93M	721.44M	1.05B	-988.62M

Beijing Digital Telecom Co. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 0.31 is below the 20-day moving average (MA) of 0.33, below the 50-day MA of 0.37, and below the 200-day MA of 0.84, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 37.72 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 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
2388	78 Outperform	$374.28B	9.79	11.58%	12.86%	8.61%	16.84%
2382	65 Neutral	$71.16B	24.21	11.45%	0.82%	18.80%	142.93%
2038	56 Neutral	$7.45B	―	-1.35%	―	-11.86%	83.13%
Sector *	54 Neutral	HK$64.45B	-1.04	-1.91%	7.94%	-2.68%	-14.14%
6188	23 Underperform	HK$274.80M	―	-293.07%	―	2.88%	-84.93%

Beijing Digital Telecom Co. Ltd. Class H Corporate Events

Beijing Digital Telecom Announces AGM with Key Resolutions

Beijing Digital Telecom Co., Ltd. has announced its upcoming annual general meeting (AGM) scheduled for May 21, 2025. The meeting will address several key resolutions, including the approval of the 2024 annual report, financial report, and profit distribution plan. Additionally, the re-appointment of Ernst & Young as the external auditor and a proposal for a financing guarantee up to RMB300 million will be discussed. A special resolution will also be considered to grant the board a mandate to issue additional shares, subject to certain conditions. This AGM is significant as it will influence the company’s financial strategies and governance, impacting stakeholders and potentially affecting its market position.

Beijing Digital Telecom Reports Increased Revenue but Higher Net Loss for 2024

Beijing Digital Telecom Co., Ltd. announced its audited annual results for the year ended December 31, 2024, reporting a revenue increase of 5.08% to RMB18,016,358,000 compared to the previous year. Despite the revenue growth, the company experienced a significant increase in net loss, amounting to RMB1,374,142,000, up by 118.10% from the prior year, primarily due to higher impairment losses on financial assets. The board has decided not to recommend a final dividend for the year.

Beijing Digital Telecom Projects Increased Net Loss for 2024

Beijing Digital Telecom Co., Ltd. has announced a projected net loss of up to RMB1,380 million for the year ending December 31, 2024, a significant increase from the previous year’s net loss of approximately RMB630 million. This increase is attributed mainly to impairment losses on financial assets, which are non-cash items and do not affect operating cash flows. Excluding these impairments, the company would have achieved a net profit for the year. The announcement is based on preliminary unaudited financial data, and the final audited results may differ. Stakeholders are advised to exercise caution when dealing with the company’s shares.

Beijing Digital Telecom Schedules Board Meeting to Approve Annual Results

Beijing Digital Telecom Co., Ltd. has announced a board meeting scheduled for March 26, 2025, to review and approve the annual results for the year ending December 31, 2024. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and strategic direction for the upcoming year.

Beijing Digital Telecom Engages in Strategic Structured Deposit Agreements

Beijing Digital Telecom Co., Ltd. has announced that Zhuhai Dixintong, a subsidiary, entered into two significant structured deposit agreements on 17 February 2025. These agreements involve subscribing to a structured deposit of RMB140 million with the Bank of Communications and RMB50 million with Industrial Bank. As these transactions exceed certain financial thresholds, they are categorized as discloseable transactions under Hong Kong’s Listing Rules, mandating specific notifications and announcements. These strategic financial maneuvers are likely to impact the company’s financial positioning by leveraging structured financial instruments, potentially enhancing returns while ensuring capital protection.