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China Star Entertainment Limited (HK:0326)
:0326
Hong Kong Market
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China Star Entertainment (0326) AI Stock Analysis

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HK:0326

China Star Entertainment

(0326)

Rating:40Neutral
Price Target:
HK$2.00
▼(-6.98% Downside)
The overall stock score is primarily impacted by significant financial challenges, including persistent losses and liquidity concerns. Technical analysis indicates bearish momentum, further weighing on the score. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield, highlighting the stock's risk profile.

China Star Entertainment (0326) vs. iShares MSCI Hong Kong ETF (EWH)

China Star Entertainment Business Overview & Revenue Model

Company DescriptionChina Star Entertainment (0326) is a diversified investment holding company based in Hong Kong, primarily engaged in the entertainment industry. The company focuses on film production and distribution, hotel and gaming operations, and property investment. With a presence in the Hong Kong entertainment sector, China Star Entertainment has established itself as a significant player in the production and distribution of films, contributing to the region's vibrant cinematic landscape.
How the Company Makes MoneyChina Star Entertainment generates revenue through multiple streams, primarily focusing on film production and distribution, hotel and gaming operations, and property investments. The company's film division produces and distributes movies, earning income from box office sales, licensing, and distribution rights. Additionally, the company's hotel and gaming segment operates casinos and hotels, contributing to its revenue through gaming operations, room bookings, and hospitality services. Property investments also play a crucial role, with income derived from property leasing and sales. Strategic partnerships and collaborations within the entertainment and hospitality sectors, along with a focus on the lucrative Asian market, further bolster the company's revenue-generating capabilities.

China Star Entertainment Financial Statement Overview

Summary
China Star Entertainment faces significant financial challenges. Despite a strong revenue growth of 253%, the company is struggling with profitability, evident from a deeply negative net profit margin of -48.33%. The balance sheet reveals moderate leverage with a debt-to-equity ratio of 0.79, but persistent losses undermine financial stability. The lack of positive operational cash flow further exacerbates liquidity concerns.
Income Statement
25
Negative
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
35
Negative
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
20
Very Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue728.22M206.17M3.88M3.72M3.65M
Gross Profit112.53M69.33M-3.40M-5.92M-8.65M
EBITDA-186.69M-133.04M-83.97M-137.31M-95.77M
Net Income-351.93M-289.48M-94.10M-156.50M-110.43M
Balance Sheet
Total Assets4.21B5.18B5.25B5.29B5.34B
Cash, Cash Equivalents and Short-Term Investments542.70M248.83M251.89M278.30M742.13M
Total Debt1.63B1.80B1.70B1.58B1.30B
Total Liabilities2.15B2.52B2.30B2.22B1.91B
Stockholders Equity2.05B2.66B2.95B3.06B3.43B
Cash Flow
Free Cash Flow242.25M41.66M-94.01M-344.21M-282.86M
Operating Cash Flow274.23M59.21M-93.83M-343.40M-280.67M
Investing Cash Flow-24.12M37.65M-2.12M-53.48M163.79M
Financing Cash Flow-351.27M-61.54M97.83M60.37M117.35M

China Star Entertainment Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.15
Price Trends
50DMA
2.47
Negative
100DMA
1.97
Positive
200DMA
1.28
Positive
Market Momentum
MACD
-0.10
Positive
RSI
49.93
Neutral
STOCH
66.27
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 2.15 is below the 20-day moving average (MA) of 2.30, below the 50-day MA of 2.47, and above the 200-day MA of 1.28, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 49.93 is Neutral, neither overbought nor oversold. The STOCH value of 66.27 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
HK$38.24B95.522.29%31.62%3.08%
60
Neutral
$44.01B4.42-12.81%4.08%1.86%-42.71%
48
Neutral
HK$733.31M-6.83%-57.29%88.62%
46
Neutral
HK$574.60M-20.32%-6.36%-166.67%
46
Neutral
HK$223.97M24.24%-7.90%93.34%
43
Neutral
HK$1.33B
40
Neutral
HK$5.00B-14.94%253.21%-23.21%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0326
China Star Entertainment
2.30
1.68
270.97%
HK:0391
Mei Ah Entertainment Group Limited
0.10
-0.04
-28.57%
HK:1132
Orange Sky Golden Harvest Entertainment (Holdings) Limited
0.07
0.02
40.00%
HK:1003
Huanxi Media Group Ltd.
0.36
-0.18
-33.33%
HK:1060
Alibaba Pictures Group Limited
1.16
0.79
213.51%
HK:6698
STAR CM Holdings Limited
1.83
-1.22
-40.00%

China Star Entertainment Corporate Events

China Star Entertainment Faces High Shareholding Concentration
Jul 14, 2025

China Star Entertainment Limited, listed on the Hong Kong Stock Exchange, has announced a high concentration of its shareholding among a limited number of shareholders. As of June 27, 2025, 91.37% of the company’s shares were held by 19 shareholders and the company’s Chairman and Vice Chairman, which could lead to significant price fluctuations with minimal trading activity. The Securities and Futures Commission (SFC) highlighted a substantial share price increase of 543.4% from March to July 2025. The company is taking steps to verify the SFC’s findings and will update the market accordingly. Despite the concentration, the company confirms compliance with the minimum public float requirement.

High Shareholding Concentration Sparks Volatility in China Star Entertainment
Jul 11, 2025

China Star Entertainment Limited is experiencing a high concentration of shareholding, with 91.37% of its shares held by a small group of shareholders, including the company’s Chairman and Vice Chairman. This concentration has led to significant volatility in the company’s share price, which has surged by 543.4% from March to July 2025, prompting the Securities and Futures Commission to caution investors about potential price fluctuations.

China Star Entertainment’s AGM Resolutions Successfully Passed
Jun 24, 2025

China Star Entertainment Limited announced that all ordinary resolutions proposed at its Annual General Meeting held on June 24, 2025, were approved by shareholders. The resolutions included the adoption of financial statements, re-election of directors, appointment of auditors, and granting of mandates to directors for share allotment and repurchase, indicating strong shareholder support and a stable governance framework.

China Star Entertainment Announces Changes to Nomination Committee
Jun 24, 2025

China Star Entertainment Limited, a company listed on the Hong Kong Stock Exchange, has announced a change in the composition of its Nomination Committee. Effective June 24, 2025, Mr. Heung Wah Keung has resigned from the committee, and Ms. Li Yuk Sheung has been appointed as a new member. This change aligns with upcoming amendments to the Listing Rules and Corporate Governance Code, which will take effect on July 1, 2025. The new composition of the Nomination Committee includes two independent non-executive directors and one executive director, ensuring gender diversity among its members.

China Star Entertainment Announces Board Composition and Roles
Jun 24, 2025

China Star Entertainment Limited has announced the composition of its board of directors and their respective roles within the company. The board includes both executive and independent non-executive directors, with specific members assigned to various board committees such as the Audit, Remuneration, Nomination, and Finance Committees. This announcement provides clarity on the governance structure of the company, potentially impacting its strategic direction and stakeholder confidence.

China Star Entertainment Updates Nomination Committee Terms
Jun 24, 2025

China Star Entertainment Limited has updated the terms of reference for its Nomination Committee, emphasizing the inclusion of independent non-executive directors and gender diversity. The committee is tasked with reviewing the board’s structure and composition, formulating director selection policies, and ensuring effective board performance, which could enhance the company’s governance and strategic alignment.

China Star Entertainment Announces 2025 AGM with Key Resolutions
May 29, 2025

China Star Entertainment Limited has announced its upcoming annual general meeting scheduled for June 24, 2025, in Hong Kong. Key agenda items include the adoption of the 2024 financial statements, re-election of a director, re-appointment of auditors, and consideration of resolutions to authorize the board to issue additional shares. These developments could potentially impact the company’s governance and capital structure, influencing its market positioning and stakeholder interests.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 29, 2025