Starlite Holdings Limited (0403) AI Stock Analysis

• Market Cap: HK$87.11M
• Dividend Yield: 14.12%
• Average Volume (3M): 768.73K
• Price to Earnings (P/E): 5.2
• Beta (1Y): 0.21
• Revenue Growth: 5.02%
• EPS Growth: 301.14%
• Country: HK
• Employees: 2,600
• Sector: Real Estate
• Sector Strength: 53
• Industry: Packaging & Containers
• EPS (TTM): -0.07
• Shares Outstanding: 500,633,300
• 10 Day Avg. Volume: 628,200
• 30 Day Avg. Volume: 768,733
• PEG Ratio: 2.26
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.26
• 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

• Rating: 61 Neutral
• Price Target: ―

Starlite Holdings Limited's overall stock score reflects a blend of strong valuation and financial stability, contrasted by weak cash flow and negative market momentum. Despite the company's solid equity base and attractive valuation metrics, concerns about liquidity and market trends temper enthusiasm. The stock's low P/E and high dividend yield offer potential for value investors, while the technical indicators suggest caution due to negative momentum.

Starlite Holdings Limited Business Overview & Revenue Model

Company Description

Starlite Holdings Limited (0403) is a diversified investment holding company primarily involved in the manufacturing and distribution of printed products. The company operates in sectors such as printing, packaging, and electronic products. With an emphasis on quality and innovation, Starlite Holdings provides a wide range of services and products including books, stationery, and packaging solutions to meet the diverse needs of its global clientele.

How the Company Makes Money

Starlite Holdings Limited generates revenue through its core business operations in the printing and packaging industry. The company earns money by manufacturing and selling printed products, including books, packaging materials, and various stationery items. A significant portion of its earnings is derived from long-term contracts with major publishers, retailers, and multinational corporations who require customized printing solutions. Additionally, Starlite Holdings benefits from economies of scale and operational efficiency in its production processes, enhancing its profit margins. Strategic partnerships with suppliers and investments in advanced printing technologies also contribute to reducing costs and improving product offerings, thereby boosting revenue.

Starlite Holdings Limited Financial Statement Overview

Summary

Starlite Holdings Limited presents a mixed financial performance. The income statement shows improved profitability with better margins but faces challenges with a 9.57% decline in revenue. The balance sheet is strong, characterized by low debt and high equity, ensuring financial stability. However, cash flow management is concerning, with free cash flow turning negative, indicating potential liquidity issues.

Income Statement

Starlite Holdings Limited shows improving profitability with a notable increase in gross profit margin to 20.51% from 16.83% a year ago. Net profit margin improved to 2.09% from 0.70%, indicating better cost management. However, the revenue has declined by 9.57% year-over-year, impacting overall growth prospects. The company also demonstrated a positive turnaround in EBIT and EBITDA margins, suggesting effective operational management.

Balance Sheet

The balance sheet is strong with a debt-to-equity ratio of 0.11, reflecting low leverage and conservative financial management. The equity ratio stands at 70.06%, indicating a solid equity base. Return on equity improved to 2.79% from 1.01%, showing enhanced shareholder returns. The overall stability of the company's financial position is robust, supported by healthy equity levels.

Cash Flow

Cash flow analysis reveals challenges with a decline in free cash flow from 38.90M to -4.75M, showcasing significant spending or operational cash constraints. Operating cash flow decreased substantially, impacting the operating cash flow to net income ratio. Despite these challenges, the company has shown capability in managing financing and investing activities.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	883.66M	834.75M	923.24M	1.05B	1.06B	1.14B
Gross Profit	173.54M	171.21M	155.38M	89.19M	158.84M	221.03M
EBITDA	58.38M	71.43M	60.47M	415.66M	-29.77M	80.30M
Net Income	17.81M	17.42M	6.48M	357.47M	-98.53M	8.50M
Balance Sheet
Total Assets	1.02B	891.44M	953.49M	1.04B	1.02B	857.57M
Cash, Cash Equivalents and Short-Term Investments	265.93M	217.63M	251.78M	285.62M	275.25M	232.40M
Total Debt	214.09M	68.46M	93.11M	147.39M	319.93M	129.38M
Total Liabilities	547.68M	266.35M	309.36M	368.83M	666.28M	408.98M
Stockholders Equity	468.61M	624.75M	643.37M	670.64M	353.22M	448.59M
Cash Flow
Free Cash Flow	-46.58M	-4.75M	38.90M	-218.16M	-222.36M	72.89M
Operating Cash Flow	-7.10M	39.81M	87.53M	-110.30M	-91.02M	98.64M
Investing Cash Flow	-33.92M	-30.33M	-58.62M	190.59M	-106.36M	-9.57M
Financing Cash Flow	-42.91M	-30.69M	-66.81M	-85.63M	204.22M	-93.91M

Starlite Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0403, the sentiment is Positive. The current price of 0.18 is below the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.19, and below the 200-day MA of 0.19, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.02 is Neutral, neither overbought nor oversold. The STOCH value of 36.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0403.

Starlite Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0697	74 Outperform	€13.18B	31.08	4.19%	7.76%	37.54%	3.60%
3888	64 Neutral	$46.21B	26.25	7.07%	0.46%	19.66%	169.54%
0403	61 Neutral	HK$87.11M	5.21	-4.47%	14.12%	5.02%	301.14%
0111	56 Neutral	€371.90M	35.40	1.08%	―	31.33%	―
Sector *	54 Neutral	$1.20B	3.61	0.13%	7.01%	-2.13%	-128.06%
1233	43 Neutral	$409.85M	―	-3320.67%	―	-38.66%	-263.64%

Starlite Holdings Limited Corporate Events

Starlite Holdings Limited Announces Board Composition

Starlite Holdings Limited has announced the composition of its board of directors, detailing the roles and functions of each member. This announcement highlights the company’s commitment to strong governance and strategic oversight, potentially impacting its operational efficiency and stakeholder confidence.

Starlite Holdings Announces Executive Leadership Change

Starlite Holdings Limited has announced a change in its executive leadership effective April 1, 2025. Mr. Tin Shing has resigned as Executive Director to spend more time with his family, with no disagreements reported with the board. He is succeeded by Mr. Zhong Zhitang, who brings over 30 years of experience in the printing and packaging business. Mr. Zhong’s appointment is expected to strengthen the company’s operational leadership, given his extensive background and current role as general manager of a key subsidiary.