Starlite Holdings Limited (0403) AI Stock Analysis

• Market Cap: HK$77.60M
• Dividend Yield: 16.13%
• Average Volume (3M): 551.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• Revenue Growth: -7.65%
• EPS Growth: -456.37%
• Country: HK
• Employees: 2,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): -0.06
• Shares Outstanding: 500,633,300
• 10 Day Avg. Volume: 359,600
• 30 Day Avg. Volume: 551,600
• PEG Ratio: 0.02
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.12
• P/FCF Ratio: -11.96
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: HK$0.16 ▼(-2.50% Downside)

Starlite Holdings Limited's overall stock score is primarily influenced by its financial performance and technical analysis. The company faces significant profitability and cash flow challenges, which are reflected in its financial performance score. The technical indicators suggest a bearish trend, further impacting the score. The high dividend yield provides some valuation appeal, but the negative P/E ratio highlights ongoing profitability issues.

Positive Factors

Diversified revenue streams

Starlite's mix of property rental, financial services fees, and manufacturing sales spreads revenue risk across sectors. This structural diversification smooths cash flow cycles, supports resilience against sector-specific downturns, and sustains operating flexibility over months.

Improving leverage

An improved debt-to-equity ratio and stable equity ratio reduce financial stress and interest burden, increasing capacity to fund operations or opportunistic investments. Better leverage management enhances solvency and supports strategic moves without immediate reliance on costly external capital.

Stable rental cash flows

A portfolio of commercial and residential rentals creates predictable recurring cash inflows that underpin working capital and dividend potential. Over a multi-month horizon, rental income is a durable revenue base less sensitive to short-term market swings than transactional sales.

Negative Factors

Negative profit margins

Sustained negative EBIT and net margins signal core profitability issues, limiting internal cash generation and reinvestment. Unless margins recover, the company may face erosion of equity and reduced ability to fund growth or maintain payouts without external capital, a structural weakness.

Volatile and weak free cash flow

Volatile and negative free cash flow undermines the firm's capacity to cover capex, service debt, and sustain dividends from operations. Persistent cash conversion weakness increases refinancing risk and may force asset sales or capital raises, affecting long-term strategic flexibility.

Declining revenue and EPS

Material revenue contraction and a severe EPS decline reflect operational and margin pressure. Such deterioration impairs retained earnings and investor confidence, making it harder to fund growth organically and restore profitability without meaningful operational improvements or strategic changes.

Starlite Holdings Limited Business Overview & Revenue Model

Company Description

Starlite Holdings Limited, an investment holding company, engages in printing and manufacturing packaging materials, labels, and paper products in Mainland China, Hong Kong, the United States, Southeast Asia, Europe, Canada, and internationally. It offers molded pulp products for various products, such as drink or food trays, bowls and plates, clamshell containers, egg cartons, shipping materials, and point of purchase packaging products; produces labels; and prints children's and novelty books, and board games comprising pop-up books, board games, puzzles, and book kits. The company also provides packaging products for household appliances, toys and games, greeting cards, consumer electronics, food and beverages, luxury, pharmaceuticals, and personal care products; blister, window box, and APET box packaging products; and luxury packaging products. In addition, it offers electronic products, such as sound modules, light sensors, and electric motors for paper printing; and e-business services through its Website teamgreenworld.net. Further, the company provides management services; manufactures and trades in machinery; trades in paper products and packaging materials; and holds trade and service marks. Additionally, it produces, trades in, and distributes team green products and automated equipment. The company was founded in 1970 and is headquartered in San Po Kong, Hong Kong.

How the Company Makes Money

Starlite Holdings generates revenue through multiple streams, with its primary income coming from rental income derived from its property investments. The company holds a portfolio of commercial and residential properties that provide consistent cash flow. Additionally, Starlite engages in financial services, earning fees and commissions from investment activities and advisory services. Its manufacturing segment contributes to revenue by producing and selling consumer products, which adds to its diversified income. Strategic partnerships with local and international firms enhance its market reach and operational capabilities, further supporting its revenue generation.

Starlite Holdings Limited Financial Statement Overview

Summary

Starlite Holdings Limited faces challenges in profitability and cash flow management, despite some improvements in leverage. The income statement and cash flow scores are low due to negative net profit margins and volatile cash flows. The balance sheet is more stable, but overall financial health needs improvement.

Income Statement

Starlite Holdings Limited has experienced fluctuating revenue growth, with a slight increase in the latest year. However, the company has struggled with profitability, as indicated by negative net profit and EBIT margins. The gross profit margin has decreased over the years, reflecting challenges in maintaining cost efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved, indicating better leverage management. However, the return on equity has been negative recently, highlighting profitability issues. The equity ratio remains stable, suggesting a solid capital structure despite profitability challenges.

Cash Flow

Starlite Holdings Limited has faced significant volatility in free cash flow, with negative growth in the latest year. The operating cash flow to net income ratio is low, reflecting challenges in converting earnings into cash. The free cash flow to net income ratio is negative, indicating cash flow issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	895.31M	895.31M	834.75M	923.24M	1.05B	1.06B
Gross Profit	134.83M	134.83M	171.21M	155.38M	89.19M	158.84M
EBITDA	18.15M	23.39M	71.43M	60.47M	415.66M	-29.77M
Net Income	-26.93M	-26.93M	17.42M	6.48M	357.47M	-98.53M
Balance Sheet
Total Assets	842.01M	842.01M	891.44M	953.49M	1.04B	1.02B
Cash, Cash Equivalents and Short-Term Investments	198.85M	198.85M	217.63M	251.78M	285.62M	275.25M
Total Debt	78.79M	78.79M	68.46M	93.11M	147.39M	319.93M
Total Liabilities	262.43M	262.43M	266.35M	309.36M	368.83M	666.28M
Stockholders Equity	579.66M	579.66M	624.75M	643.37M	670.64M	353.22M
Cash Flow
Free Cash Flow	-9.21M	-9.21M	-4.75M	38.90M	-218.16M	-222.36M
Operating Cash Flow	8.98M	8.98M	39.81M	87.53M	-110.30M	-91.02M
Investing Cash Flow	-17.23M	-15.77M	-30.33M	-58.62M	190.59M	-106.36M
Financing Cash Flow	-5.70M	-5.70M	-30.69M	-66.81M	-85.63M	204.22M

Starlite Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0403, the sentiment is Neutral. The current price of 0.16 is above the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.16, and below the 200-day MA of 0.19, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.86 is Neutral, neither overbought nor oversold. The STOCH value of 18.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0403.

Starlite Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1451	82 Outperform	HK$259.59M	5.53	21.87%	25.21%	41.20%	75.40%
1008	65 Neutral	HK$293.19M	5.36	2.33%	20.10%	2.14%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6898	58 Neutral	HK$660.83M	41.42	13.20%	0.59%	-2.08%	-23.18%
0403	51 Neutral	HK$77.60M	-1.23	-10.45%	16.13%	-7.65%	-456.37%
1820	46 Neutral	HK$751.58M	-24.49	-5.51%	3.20%	3.51%	-950.83%
0252	45 Neutral	HK$360.67M	-15.63	-2.11%	1.87%	19.02%	-236.72%

Starlite Holdings Limited Corporate Events

Starlite Holdings to Boost Printing Capacity with RMB12.8 Million Press Acquisition

Starlite Holdings Limited has entered into a discloseable transaction to acquire a Heidelberg Speedmaster Six-Colour Offset Press with Coating System (Model CX 104-6+L) for RMB12.8 million (approximately HK$14.24 million), including VAT, from Heidelberg Graphics (Beijing) Company Limited Shenzhen Branch. The consideration, determined on normal commercial terms after arm’s length negotiations and benchmarked against prevailing market prices for similar equipment, will be paid 40% as a deposit within five working days of signing and 60% seven days before delivery, with the machine expected to be delivered about four months after the deposit payment. Classified as a discloseable transaction under Chapter 14 of the Hong Kong Listing Rules due to one of the applicable percentage ratios exceeding 5% but remaining below 25%, the acquisition requires reporting and announcement but no shareholder approval, and is expected to strengthen Starlite’s production capacity and operational capabilities in its printing business, potentially enhancing efficiency and competitiveness in its core markets.

The most recent analyst rating on (HK:0403) stock is a Hold with a HK$0.18 price target. To see the full list of analyst forecasts on Starlite Holdings Limited stock, see the HK:0403 Stock Forecast page.

Starlite Holdings Sets Out Board and Committee Structure for 2026

Starlite Holdings Limited has announced the current composition of its board of directors, naming five executive directors, one non-executive director and four independent non-executive directors, effective 1 January 2026. The company has also detailed the membership and chairmanship of its three key board committees—audit, remuneration and nomination—assigning leadership roles predominantly to independent non-executive directors, underscoring its adherence to corporate governance norms and providing investors and stakeholders with clarity on oversight responsibilities.

The most recent analyst rating on (HK:0403) stock is a Hold with a HK$0.18 price target. To see the full list of analyst forecasts on Starlite Holdings Limited stock, see the HK:0403 Stock Forecast page.

Starlite Holdings Announces Leadership Restructuring for Enhanced Governance

Starlite Holdings Limited has announced a significant change in its leadership structure effective from January 1, 2026. Mr. Lam will step down as CEO but will continue as Executive Chairman and Executive Director, while Ms. Zhao Chunyan will take over as the new CEO and Executive Director. This re-designation aims to enhance corporate governance and compliance with the Corporate Governance Code. The changes are expected to impact the company’s strategic direction and operational management, potentially influencing stakeholder interests.

The most recent analyst rating on (HK:0403) stock is a Hold with a HK$0.18 price target. To see the full list of analyst forecasts on Starlite Holdings Limited stock, see the HK:0403 Stock Forecast page.

Starlite Holdings Reports Interim Loss Amid Revenue Decline

Starlite Holdings Limited reported its unaudited interim results for the six months ending September 30, 2025, showing a significant decline in financial performance compared to the same period in 2024. The company experienced a drop in revenue from HK$508,622,000 to HK$429,409,000, leading to a net loss of HK$29,030,000, compared to a profit of HK$7,090,000 in the previous year. This downturn is attributed to increased costs and reduced gains, impacting the company’s profitability and potentially affecting its market position and stakeholder confidence.

The most recent analyst rating on (HK:0403) stock is a Hold with a HK$0.18 price target. To see the full list of analyst forecasts on Starlite Holdings Limited stock, see the HK:0403 Stock Forecast page.

Starlite Holdings Issues Profit Warning Amid Market Challenges

Starlite Holdings Limited has issued a profit warning, indicating an expected loss of up to HK$30 million for the six months ending September 30, 2025, compared to a profit of HK$7 million in the same period last year. The loss is attributed to decreased orders from packaging customers, intensified competition, uncertainties over US trade tariffs, increased costs in the Team Green division, and challenges in relocating production lines to Malaysia. These factors have impacted the company’s operations and market positioning, urging shareholders and investors to exercise caution.