Starlight Culture Entertainment Group Limited (1159) AI Stock Analysis

• Market Cap: HK$326.27M
• Dividend Yield: N/A
• Average Volume (3M): 231.38K
• Price to Earnings (P/E): 1.7
• Beta (1Y): 0.56
• Revenue Growth: -57.01%
• EPS Growth: N/A
• Country: HK
• Employees: 20
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 1.48
• Shares Outstanding: 141,856,480
• 10 Day Avg. Volume: 57,600
• 30 Day Avg. Volume: 231,380
• PEG Ratio: 0.09
• Price to Book (P/B): -0.32
• Price to Sales (P/S): 3.04
• P/FCF Ratio: 6.51
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: HK$2.00 ▲(5.82% Upside)

The overall stock score of 43 reflects significant financial challenges and weak technical indicators, despite an attractive valuation. The company's financial instability, characterized by declining revenues and high leverage, is the most significant factor impacting the score. Technical analysis further indicates bearish momentum. While the low P/E ratio suggests potential undervaluation, the lack of dividend yield and financial risks overshadow this positive aspect.

Positive Factors

Business Model Diversification

The company's diversified revenue streams across various entertainment sectors provide resilience against industry-specific downturns and enhance long-term revenue stability.

Positive EBIT and EBITDA Margins

Improvement in EBIT and EBITDA margins indicates better operational efficiency, which can lead to enhanced profitability and financial health over the long term.

Strategic Partnerships

Strategic partnerships expand market reach and improve content monetization, supporting sustainable growth and competitive positioning in the entertainment industry.

Negative Factors

Declining Revenue

A significant decline in revenue growth indicates potential challenges in market demand or competitive pressures, which can impact long-term financial stability and growth prospects.

High Leverage

High leverage and negative equity pose risks to financial stability, limiting the company's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Weak Cash Flow

Weak cash flow performance suggests liquidity issues, hindering the company's ability to sustain operations and meet debt obligations, which can affect long-term viability.

Starlight Culture Entertainment Group Limited Business Overview & Revenue Model

Company Description

Starlight Culture Entertainment Group Limited, an investment holding company, engages in the media and culture business in the United States, Hong Kong, and Mainland China. It is involved in the investment, production, and distribution of motion picture projects, films, and television programs. The company was formerly known as Jimei International Entertainment Group Limited and changed its name to Starlight Culture Entertainment Group Limited in August 2017. Starlight Culture Entertainment Group Limited was incorporated in 1998 and is headquartered in Hong Kong, Hong Kong.

How the Company Makes Money

Starlight Culture Entertainment Group Limited generates revenue through multiple streams, including film and television production, licensing of content, and distribution rights. The company earns money by producing its own films and TV shows, which are then sold to broadcasters and streaming platforms. Additionally, they generate income from licensing agreements that allow other companies to use their content for a fee. Event organization, which includes concerts, festivals, and promotional events, also contributes to their revenue. Significant partnerships with other media companies and platforms enhance their reach and ability to monetize content effectively. Furthermore, talent management services provide another revenue stream, as the company takes a percentage of earnings from the artists it represents.

Starlight Culture Entertainment Group Limited Financial Statement Overview

Summary

Starlight Culture Entertainment Group Limited faces significant financial challenges, highlighted by declining revenues, persistent losses, and a highly leveraged balance sheet. While there are signs of operational improvement, such as positive EBIT and EBITDA margins, the overall financial health remains precarious. The company must address its liquidity and solvency risks to improve its financial stability and performance.

Income Statement

The company has experienced significant volatility in its revenue and profitability. Recent years have shown declining revenues, with a sharp drop from 2019's high revenue levels. The gross profit margin has been inconsistent, turning from positive to negative before recovering slightly. Net profit margin remains negative, indicating ongoing losses. EBIT and EBITDA margins have improved from highly negative to positive in the latest year, suggesting some operational improvement, but the overall profitability is still weak.

Balance Sheet

The balance sheet reveals a concerning financial structure with negative stockholders' equity and high leverage. The debt-to-equity ratio is not applicable due to negative equity, but total debt significantly exceeds total assets. The equity ratio is negative, indicating insolvency risk. The company is heavily reliant on debt financing, which poses a substantial risk in terms of financial stability.

Cash Flow

Cash flow performance is weak, with negative free cash flow in recent years. There is no operating cash flow in the latest period, indicating potential liquidity issues. The free cash flow to net income ratio is not applicable due to negative figures. Overall, the cash flow situation suggests challenges in generating sufficient cash to sustain operations and service debt.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.51M	40.37M	80.34M	60.25M	199.39M	47.76M
Gross Profit	25.45M	40.37M	8.06M	4.03M	-95.39M	-28.24M
EBITDA	8.18M	22.30M	40.00M	-101.05M	-396.19M	-130.73M
Net Income	133.90M	-28.38M	-45.72M	-135.87M	-399.26M	-162.28M
Balance Sheet
Total Assets	356.54M	442.76M	476.53M	566.72M	720.88M	1.02B
Cash, Cash Equivalents and Short-Term Investments	37.27M	38.83M	52.00M	145.37M	290.64M	443.90M
Total Debt	257.36M	420.63M	443.35M	470.95M	395.55M	515.64M
Total Liabilities	581.25M	824.78M	854.78M	897.26M	911.75M	841.88M
Stockholders Equity	-224.71M	-382.02M	-377.74M	-330.18M	-189.85M	202.55M
Cash Flow
Free Cash Flow	37.29M	18.88M	-9.09M	-65.62M	105.36M	-986.00K
Operating Cash Flow	37.29M	39.73M	-9.08M	-65.61M	106.23M	120.00K
Investing Cash Flow	-2.43M	-2.31M	104.00K	-17.00K	-820.00K	-1.20M
Financing Cash Flow	-49.98M	-50.37M	-18.35M	-29.34M	-92.03M	-36.38M

Starlight Culture Entertainment Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1159, the sentiment is Negative. The current price of 1.89 is below the 20-day moving average (MA) of 2.17, below the 50-day MA of 2.43, and below the 200-day MA of 2.13, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 34.14 is Neutral, neither overbought nor oversold. The STOCH value of 4.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1159.

Starlight Culture Entertainment Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
1046	51 Neutral	HK$389.85M	―	-23.06%	―	29.39%	-107.44%
0136	51 Neutral	HK$44.12B	33.21	7.01%	―	-13.62%	-8.47%
0391	48 Neutral	HK$633.84M	-11.15	-20.32%	―	-6.36%	-166.67%
0491	46 Neutral	HK$112.47M	―	―	―	-2.81%	80.19%
0953	45 Neutral	HK$418.78M	295.00	0.29%	―	206.38%	―
1159	43 Neutral	HK$326.27M	1.75	―	―	-57.01%	―

Starlight Culture Entertainment Group Limited Corporate Events

Smart Digital Technology Group Eyes Major Acquisition in Shanghai

Smart Digital Technology Group Limited has announced a non-legally binding letter of intent for a potential acquisition of at least 51% equity interest in Shanghai Mission Information Technologies Corp., Ltd. The acquisition terms will be based on a valuation report and due diligence, with a formal agreement expected within six months, impacting the company’s strategic positioning in the technology sector.

The most recent analyst rating on (HK:1159) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on Starlight Culture Entertainment Group Limited stock, see the HK:1159 Stock Forecast page.

Smart Digital Technology Group Reports Significant Profit Turnaround in H1 2025

Smart Digital Technology Group Limited announced its interim results for the six months ending June 30, 2025. The company reported a significant increase in profit, achieving HK$150,996,000 compared to a loss of HK$11,286,000 in the same period of 2024. This turnaround was primarily driven by a gain on the disposal of subsidiaries amounting to HK$244,670,000, despite a decrease in revenue and an increase in impairment losses on prepayments and other assets. The results indicate a strategic shift in the company’s operations, potentially impacting its market positioning and stakeholder interests.