China Star Entertainment (0326) AI Stock Analysis

• Market Cap: HK$8.72B
• Dividend Yield: N/A
• Average Volume (3M): 5.26M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.02
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: HK$3.00 ▲(1.69% Upside)

The score is held down primarily by weak financial performance, driven by large losses and lack of operating/free cash flow despite strong revenue growth. Technicals provide partial support due to a strong uptrend, but overbought signals increase downside risk. Valuation remains unattractive/unclear given negative earnings and no dividend yield data.

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: 2.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 2.95 is above the 20-day moving average (MA) of 2.62, above the 50-day MA of 2.17, and above the 200-day MA of 2.04, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 80.67 is Negative, neither overbought nor oversold. The STOCH value of 94.66 is Negative, 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$25.69B	43.00	3.30%	―	40.31%	212.50%
0391	48 Neutral	HK$592.37M	-16.13	-14.60%	―	-44.93%	30.34%
0326	47 Neutral	HK$8.72B	-26.63	-14.75%	―	184.30%	3.58%
1003	46 Neutral	HK$1.08B	―	―	―	―	―
6698	46 Neutral	HK$378.61M	-1.87	-6.83%	―	-57.29%	88.62%
1132	45 Neutral	HK$187.58M	-6.38	24.24%	―	-7.90%	93.34%

China Star Entertainment Corporate Events

China Star Eases Shareholding Concentration After Controlling Shareholder Trim

China Star Entertainment Limited announced that it has diversified its shareholding structure following the disposal of 81 million shares by its controlling shareholder, Heung Wah Keung Family Endowment Limited, conducted through on-market transactions between 15 and 22 December 2025. As a result of this sale, the controlling shareholder’s stake was reduced from about 67.53% to approximately 64.20%, leading the company’s board to conclude that the previously identified high concentration of shareholding, which had prompted regulatory concerns in mid-2025, no longer exists and should not be used to assess the current ownership structure, which is now considered free from concentration in the hands of a limited number of shareholders.

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 Controlling Shareholder Cuts Stake to Ease Shareholding Concentration

China Star Entertainment’s controlling shareholder vehicle, Heung Wah Keung Family Endowment Limited, has sold 81 million shares on the open market between 15 and 22 December 2025, reducing its stake from about 67.53% to 64.20% of the company’s issued share capital while remaining the controlling shareholder. The disposal follows regulatory concerns about high shareholding concentration and is described by chairman Heung Wah Keung as a move to broaden the shareholder base and alleviate concentration risk, with the board stressing that the shares were sold to independent third parties, that it will further verify the company’s shareholding structure, and that the transaction is not expected to adversely affect the group’s business operations or financial 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.