China Star Entertainment (0326) AI Stock Analysis

• Market Cap: HK$5.49B
• Dividend Yield: N/A
• Average Volume (3M): 5.26M
• Price to Earnings (P/E): ―
• Beta (1Y): >-0.01
• Revenue Growth: 184.30%
• EPS Growth: 3.58%
• Country: HK
• Employees: 237
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -0.05
• Shares Outstanding: 2,428,906,300
• 10 Day Avg. Volume: 7,953,927
• 30 Day Avg. Volume: 5,257,439
• PEG Ratio: -0.21
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 1.67
• P/FCF Ratio: 5.02
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: HK$2.00 ▼(-11.50% Downside)

The overall stock score of 44.6 reflects significant financial challenges, with persistent losses and liquidity concerns being the most impactful factors. Technical analysis provides some short-term bullish signals, but caution is advised due to mixed indicators. The valuation is weak, with a negative P/E ratio and no dividend yield, further weighing down the score.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective business strategies, positioning the company for future expansion.

Market Position

Operating in a growing industry provides opportunities for long-term growth, leveraging increased content consumption and market expansion.

Diversified Revenue Streams

Diversified income sources reduce dependency on a single revenue stream, enhancing financial resilience and growth potential.

Negative Factors

Profitability Challenges

Persistent losses and negative margins indicate operational inefficiencies, which could hinder long-term financial stability and growth.

Liquidity Concerns

Lack of cash flow generation raises concerns about the company's ability to sustain operations and invest in growth without external funding.

Balance Sheet Weakness

While leverage is moderate, persistent losses and negative ROE suggest inefficiencies in capital utilization, impacting financial health.

China Star Entertainment Business Overview & Revenue Model

Company Description

China Star Entertainment Limited, an investment holding company, engages in the investment, production, distribution, and licensing of films and television drama series in Hong Kong, Macau, the People's Republic of China, and Taiwan. The company operates through two segments, Film Related Business Operations, and Property Development and Investment Operations. It is also involved in the provision of other film related services, including artist management and agency services; and investment and development of properties. In addition, the company offers corporate planning, props and equipment rental, and dramatic creation; art piece investment and rental; property and construction project management; motion pictures and video rights distribution; film production services, including pre-production, production or shooting, and post-production; nominee; and song rights, trademarks, and copyrights holding and licensing services. Further, it provides property agency and management services, as well as holds cable rights. The company was incorporated in 1992 and is headquartered in Central, Hong Kong. China Star Entertainment Limited is a subsidiary of Heung Wah Keung Family Endowment Limited.

How the Company Makes Money

China Star Entertainment generates revenue through multiple streams, primarily from the production and distribution of films and television series. The company earns income from box office sales, licensing agreements, and distribution rights for its content in various markets. Additionally, the company benefits from sponsorship deals and partnerships with other media firms for co-productions and joint ventures, which enhance its market reach and revenue potential. Merchandising and ancillary revenue from related products and services also contribute to its overall earnings.

China Star Entertainment Financial Statement Overview

Summary

China Star Entertainment faces significant financial challenges. Despite a notable revenue growth of 253%, the company struggles with profitability, reflected in a deeply negative net profit margin of -48.33%. The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.79, but persistent losses undermine financial stability. The lack of operational cash inflows and absence of free cash flow highlight potential liquidity issues.

Income Statement

The income statement reveals significant financial challenges. The gross profit margin for 2024 is 15.45%, indicating some ability to cover direct costs. However, the net profit margin is deeply negative at -48.33%, reflecting substantial losses. Revenue growth is notable at 253% from 2023 to 2024, suggesting a recovery trajectory, but persistent negative EBIT and EBITDA margins highlight ongoing operational inefficiencies.

Balance Sheet

The balance sheet shows a mixed financial position. The debt-to-equity ratio of 0.79 in 2024 indicates moderate leverage. However, the return on equity is negative due to net losses, signaling inefficiencies in generating shareholder value. The equity ratio of 48.85% suggests a relatively strong capital base, but overall stability is compromised by persistent losses.

Cash Flow

The cash flow statement reflects a lack of operational cash inflows, with no operating cash flow or free cash flow reported for 2024. The absence of cash flow metrics such as free cash flow growth and cash flow ratios points to potential liquidity issues and challenges in sustaining operations without external funding.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	791.42M	728.22M	206.17M	3.88M	3.72M	3.65M
Gross Profit	130.98M	112.53M	69.33M	-3.40M	-5.92M	-8.65M
EBITDA	-218.21M	-186.69M	-133.04M	-83.97M	-137.31M	-95.77M
Net Income	-327.32M	-351.93M	-289.48M	-94.10M	-156.50M	-110.43M
Balance Sheet
Total Assets	4.18B	4.21B	5.18B	5.25B	5.29B	5.34B
Cash, Cash Equivalents and Short-Term Investments	136.11M	164.34M	248.83M	251.89M	278.30M	742.13M
Total Debt	1.67B	1.63B	1.80B	1.70B	1.58B	1.30B
Total Liabilities	2.27B	2.15B	2.52B	2.30B	2.22B	1.91B
Stockholders Equity	1.94B	2.05B	2.66B	2.95B	3.06B	3.43B
Cash Flow
Free Cash Flow	200.18M	242.25M	41.66M	-94.01M	-344.21M	-282.86M
Operating Cash Flow	223.11M	274.23M	59.21M	-93.83M	-343.40M	-280.67M
Investing Cash Flow	-27.27M	-24.12M	37.65M	24.57M	-27.65M	206.67M
Financing Cash Flow	-223.28M	-351.27M	-61.54M	-3.44M	3.96M	53.21M

China Star Entertainment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0326, the sentiment is Positive. The current price of 2.26 is above the 20-day moving average (MA) of 1.94, above the 50-day MA of 2.00, and above the 200-day MA of 1.90, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 61.88 is Neutral, neither overbought nor oversold. The STOCH value of 71.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0326.

China Star Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
1060	56 Neutral	HK$25.99B	43.50	3.30%	―	40.31%	212.50%
0391	48 Neutral	HK$592.37M	-16.13	-14.60%	―	-44.93%	30.34%
1003	46 Neutral	HK$1.13B	―	―	―	―	―
6698	46 Neutral	HK$430.42M	-2.13	-6.83%	―	-57.29%	88.62%
1132	45 Neutral	HK$190.38M	-6.48	24.24%	―	-7.90%	93.34%
0326	45 Neutral	HK$5.49B	-16.77	-14.75%	―	184.30%	3.58%

China Star Entertainment Corporate Events

China Star Entertainment Reports Interim Financial Results for 2025

China Star Entertainment Limited reported its interim results for the six months ended June 30, 2025, showing a revenue increase to HK$256.5 million from HK$193.3 million in the previous year. Despite the revenue growth, the company experienced a loss of HK$133.6 million, slightly less than the previous year’s loss of HK$134.2 million, due to increased administrative and operating expenses. The results highlight ongoing financial challenges and potential implications for stakeholders as the company navigates its current market position.

The most recent analyst rating on (HK:0326) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on China Star Entertainment stock, see the HK:0326 Stock Forecast page.

China Star Entertainment Schedules Board Meeting to Discuss Interim Results

China Star Entertainment Limited has announced a board meeting scheduled for August 29, 2025, to discuss and approve the company’s unaudited interim results for the first half of the year and to consider the payment of an interim dividend. This meeting could have significant implications for the company’s financial health and shareholder returns, potentially impacting its market positioning and investor confidence.