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

China Star Entertainment (0326) AI Stock Analysis

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HK:0326

China Star Entertainment

(0326)

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Neutral 49 (OpenAI - 5.2)
Rating:49Neutral
Price Target:
HK$4.50
▲(52.54% Upside)
Action:UpgradedDate:01/29/26
The score is held back primarily by weak financial performance—large losses and a lack of reported operating/free cash flow outweigh strong revenue growth. Technicals are a positive (clear uptrend and positive MACD), but overbought readings (RSI/Stoch) add near-term risk. Valuation remains unattractive/unclear due to negative earnings and no dividend yield data.
Positive Factors
Revenue growth
Sustained, high revenue growth indicates strong market demand for content and successful distribution reach. Over 2-6 months this supports scaling economics, better negotiation leverage with partners, and potential to monetize ancillary streams (licensing, sponsorships) as productions mature.
Negative Factors
Deep net losses
Large, persistent net losses materially weaken retained earnings and shareholder value, limiting the firm’s ability to internally finance content production. Over several months this undermines reinvestment capacity and necessitates external funding or cost restructuring to reach break-even.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth
Sustained, high revenue growth indicates strong market demand for content and successful distribution reach. Over 2-6 months this supports scaling economics, better negotiation leverage with partners, and potential to monetize ancillary streams (licensing, sponsorships) as productions mature.
Read all positive factors

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

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 o...
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 i...

China Star Entertainment Financial Statement Overview

Summary
Financials are weak overall: despite strong revenue growth (253% YoY), profitability remains deeply negative (net margin -48.33%) and both EBIT/EBITDA margins are negative. Cash flow is a major concern with no operating cash flow or free cash flow reported for 2024, raising liquidity and sustainability risk. Balance sheet leverage is moderate (debt-to-equity 0.79) and equity ratio is relatively solid (48.85%), but persistent losses undermine stability.
Income Statement
25
Negative
Balance Sheet
35
Negative
Cash Flow
20
Very Negative
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue791.42M728.22M206.17M3.88M3.72M3.65M
Gross Profit130.98M112.53M69.33M-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 Assets4.18B4.21B5.18B5.25B5.29B5.34B
Cash, Cash Equivalents and Short-Term Investments136.11M164.34M248.83M251.89M278.30M742.13M
Total Debt1.67B1.63B1.80B1.70B1.58B1.30B
Total Liabilities2.27B2.15B2.52B2.30B2.22B1.91B
Stockholders Equity1.94B2.05B2.66B2.95B3.06B3.43B
Cash Flow
Free Cash Flow200.18M242.25M41.66M-94.01M-344.21M-282.86M
Operating Cash Flow223.11M274.23M59.21M-93.83M-343.40M-280.67M
Investing Cash Flow-27.27M-24.12M37.65M24.57M-27.65M206.67M
Financing Cash Flow-223.28M-351.27M-61.54M-3.44M3.96M53.21M

China Star Entertainment Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.95
Price Trends
50DMA
4.95
Positive
100DMA
3.66
Positive
200DMA
2.98
Positive
Market Momentum
MACD
0.51
Negative
RSI
67.17
Neutral
STOCH
78.37
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 2.95 is below the 20-day moving average (MA) of 5.96, below the 50-day MA of 4.95, and below the 200-day MA of 2.98, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 67.17 is Neutral, neither overbought nor oversold. The STOCH value of 78.37 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
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
56
Neutral
HK$19.12B14.043.32%40.31%212.50%
49
Neutral
HK$16.27B-12.54-16.39%184.30%3.58%
46
Neutral
HK$586.45M-8.07-15.30%-44.93%30.34%
46
Neutral
HK$184.78M3.28-1.93%-7.90%93.34%
46
Neutral
HK$862.93M-3.44-24.48%
46
Neutral
HK$386.58M-3.14-4.50%-57.29%88.62%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0326
China Star Entertainment
6.70
5.41
419.38%
HK:0391
Mei Ah Entertainment Group Limited
0.10
<0.01
10.00%
HK:1132
Orange Sky Golden Harvest Entertainment (Holdings) Limited
0.07
0.04
112.90%
HK:1003
Huanxi Media Group Ltd.
0.24
-0.17
-42.44%
HK:1060
Damai Entertainment Holdings Limited
0.64
0.18
39.13%
HK:6698
STAR CM Holdings Limited
0.97
-0.86
-46.99%

China Star Entertainment Corporate Events

China Star Eases Shareholding Concentration After Controlling Shareholder Trim
Dec 30, 2025
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 transac...
China Star Controlling Shareholder Cuts Stake to Ease Shareholding Concentration
Dec 24, 2025
China Star Entertainment&#8217;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 compan...
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: Jan 29, 2026