China Star Entertainment (0326) AI Stock Analysis

• Market Cap: HK$5.39B
• Dividend Yield: N/A
• Average Volume (3M): 8.15M
• 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: 5,054,677
• 30 Day Avg. Volume: 8,147,339
• 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: HK$2.00
• Price Target Upside: -9.91% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 42 Neutral
• Price Target: HK$2.00 ▼(-9.91% Downside)

The overall stock score is primarily impacted by significant financial challenges, including substantial net losses and liquidity concerns. Technical indicators suggest short-term stability but medium-term weakness, while valuation metrics highlight ongoing financial difficulties. The lack of earnings call data and corporate events limits additional insights.

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 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 notable revenue growth of 253%, the company struggles with profitability, as indicated by a deeply negative net profit margin of -48.33%. The balance sheet shows moderate leverage but persistent losses, and the cash flow statement highlights potential liquidity issues with no reported operating or free cash flow.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	728.22M	206.17M	3.88M	3.72M	3.65M
Gross Profit	112.53M	69.33M	-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 Assets	4.21B	5.18B	5.25B	5.29B	5.34B
Cash, Cash Equivalents and Short-Term Investments	542.70M	248.83M	251.89M	278.30M	742.13M
Total Debt	1.63B	1.80B	1.70B	1.58B	1.30B
Total Liabilities	2.15B	2.52B	2.30B	2.22B	1.91B
Stockholders Equity	2.05B	2.66B	2.95B	3.06B	3.43B
Cash Flow
Free Cash Flow	242.25M	41.66M	-94.01M	-344.21M	-282.86M
Operating Cash Flow	274.23M	59.21M	-93.83M	-343.40M	-280.67M
Investing Cash Flow	-24.12M	37.65M	-2.12M	-53.48M	163.79M
Financing Cash Flow	-351.27M	-61.54M	97.83M	60.37M	117.35M

China Star Entertainment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.22
• 50DMA: Negative
• 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 2.22 is above the 20-day moving average (MA) of 2.17, below the 50-day MA of 2.49, and above the 200-day MA of 1.38, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 48.55 is Neutral, neither overbought nor oversold. The STOCH value of 70.37 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1060	56 Neutral	32.56B	81.34	2.24%	―	31.62%	3.08%
6698	48 Neutral	717.37M	-3.54	-8.75%	―	-57.29%	88.62%
1132	46 Neutral	226.77M	-7.71	-20.74%	―	-7.90%	93.34%
0391	45 Neutral	533.14M	-9.38	-22.73%	―	-6.36%	-166.67%
1003	43 Neutral	1.33B	―	0.00%	―	0.00%	0.00%
0326	42 Neutral	HK$5.39B	―	-14.75%	―	184.30%	3.58%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

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.

China Star Entertainment Faces High Shareholding Concentration

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

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

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

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

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

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.