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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)

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Neutral 44 (OpenAI - 5.2)
Rating:44Neutral
Price Target:
HK$5.50
▲(86.44% Upside)
Action:Reiterated
Date:06/04/26
The score is primarily held down by weak financial performance—persistent large losses, volatile revenue, higher leverage, and a swing to negative operating/free cash flow in 2025. Technicals add modest pressure with short-term downtrend signals (below 20/50-DMA and negative MACD). Valuation does not provide support given negative earnings and no dividend yield data.
Positive Factors
Improved gross margin
Sustained improvement in gross margin signals the core entertainment business can earn higher incremental profits from revenue, supporting long-term operating leverage. If maintained, stronger gross margins reduce the revenue level required for break-even and improve recovery prospects over months.
Negative Factors
Highly volatile and falling revenue
Large swings in top-line undermine predictability of earnings and investment planning. Volatile revenue suggests reliance on episodic content or events and raises execution risk for sustaining margins, making multi-quarter recovery plans harder to rely on without evidence of stable demand drivers.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved gross margin
Sustained improvement in gross margin signals the core entertainment business can earn higher incremental profits from revenue, supporting long-term operating leverage. If maintained, stronger gross margins reduce the revenue level required for break-even and improve recovery prospects over months.
Read all positive factors

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

China Star Entertainment Business Overview & Revenue Model

Company Description
Operating as an investment holding company, China Star Entertainment Limited primarily dedicates its efforts to the film and television industry. Its activities encompass the financing, creation, distribution, and licensing of films and TV drama s...
How the Company Makes Money
null...

China Star Entertainment Financial Statement Overview

Summary
Financial statement signals are weak: highly volatile revenue, deepening net losses (losses exceeding revenue), rising leverage with debt-to-equity moving above 1x, and a 2025 reversal to negative operating and free cash flow. Improved gross margin is a partial offset but not enough to overcome poor earnings quality and weakening cash generation.
Income Statement
18
Very Negative
Balance Sheet
46
Neutral
Cash Flow
24
Negative
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue404.92M728.22M206.17M3.88M3.72M
Gross Profit111.10M112.53M69.33M-3.40M-5.92M
EBITDA-411.70M-186.69M-133.04M-83.97M-137.31M
Net Income-443.76M-351.93M-289.48M-94.10M-156.50M
Balance Sheet
Total Assets4.43B4.21B5.18B5.25B5.29B
Cash, Cash Equivalents and Short-Term Investments220.98M164.34M248.83M251.89M278.30M
Total Debt1.98B1.63B1.80B1.70B1.58B
Total Liabilities2.91B2.15B2.52B2.30B2.22B
Stockholders Equity1.61B2.05B2.66B2.95B3.06B
Cash Flow
Free Cash Flow-197.70M242.25M41.66M-94.01M-344.21M
Operating Cash Flow-195.91M274.23M59.21M-93.83M-343.40M
Investing Cash Flow-2.66M-24.12M37.65M24.57M-27.65M
Financing Cash Flow239.46M-351.27M-61.54M-3.44M3.96M

China Star Entertainment Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.95
Price Trends
50DMA
6.87
Negative
100DMA
6.04
Negative
200DMA
4.21
Positive
Market Momentum
MACD
-0.27
Negative
RSI
46.66
Neutral
STOCH
48.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0326, the sentiment is Neutral. The current price of 2.95 is below the 20-day moving average (MA) of 5.92, below the 50-day MA of 6.87, and below the 200-day MA of 4.21, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 46.66 is Neutral, neither overbought nor oversold. The STOCH value of 48.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
62
Neutral
HK$201.58M3.584.19%-8.31%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
60
Neutral
HK$13.64B16.264.34%21.91%94.03%
46
Neutral
HK$592.37M-15.87-15.30%-44.93%30.34%
44
Neutral
HK$16.01B-37.53-25.03%-44.40%-26.09%
44
Neutral
HK$925.05M-1.53-55.96%
41
Neutral
HK$358.68M-2.71-4.50%3.45%48.80%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0326
China Star Entertainment
6.59
4.38
198.19%
HK:0391
Mei Ah Entertainment Group Limited
0.10
>-0.01
-2.91%
HK:1132
Orange Sky Golden Harvest Entertainment (Holdings) Limited
0.07
0.02
46.94%
HK:1003
Huanxi Media Group Ltd.
0.21
-0.17
-45.19%
HK:1060
Damai Entertainment Holdings Limited
0.46
-0.47
-50.54%
HK:6698
STAR CM Holdings Limited
0.90
-1.02
-53.13%

China Star Entertainment Corporate Events

China Star Entertainment Wins Shareholder Backing for New Bye-Laws and Capital Mandates
Jun 29, 2026
China Star Entertainment shareholders approved all resolutions at the 29 June 2026 annual general meeting, including adoption of the audited financial statements for 2025 and the reappointment of HLB Hodgson Impey Cheng as independent auditors. In...
China Star Entertainment Calls 2026 AGM, Seeks Fresh Share Issue Mandate
May 26, 2026
China Star Entertainment has called its annual general meeting for 29 June 2026 in Hong Kong to adopt the audited financial statements for the year ended 31 December 2025, approve the re-election of independent non-executive directors and set thei...
China Star Entertainment Moves to Adopt New Bye-laws for Paperless Regime
May 26, 2026
China Star Entertainment Limited plans to overhaul its constitutional documents by replacing its existing bye-laws with a new set designed to align with Hong Kong’s expanded paperless listing regime. The move will allow shareholders to give ...
China Star Entertainment Cuts Board Lot Size to Boost Share Liquidity
Apr 8, 2026
China Star Entertainment will reduce the trading board lot size of its ordinary shares on the Hong Kong Stock Exchange from 10,000 to 2,000 shares, effective 29 April 2026. Based on the current HK$6.43 share price, the minimum board lot value will...
China Star Entertainment Swings to Deeper 2025 Loss as Revenue Slumps
Mar 30, 2026
China Star Entertainment reported a steep deterioration in its 2025 financial performance, with revenue dropping to HK$404.9 million from HK$728.2 million and gross profit slipping to HK$114.3 million. The group recorded a widened loss attributabl...
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: Jun 04, 2026