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Starlight Culture Entertainment Group Limited (HK:1159)
:1159
Hong Kong Market
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Starlight Culture Entertainment Group Limited (1159) AI Stock Analysis

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HK:1159

Starlight Culture Entertainment Group Limited

(1159)

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Neutral 48 (OpenAI - 4o)
Rating:48Neutral
Price Target:
HK$3.00
▼(-1.96% Downside)
The most significant factor impacting the overall score is the company's weak financial performance, characterized by declining revenues and high leverage. Technical analysis provides a mixed view, with bearish short-term trends but some longer-term support. The valuation appears attractive due to a low P/E ratio, but the absence of a dividend yield is a drawback. Overall, the stock faces substantial financial challenges that overshadow its valuation appeal.

Starlight Culture Entertainment Group Limited (1159) vs. iShares MSCI Hong Kong ETF (EWH)

Starlight Culture Entertainment Group Limited Business Overview & Revenue Model

Company DescriptionStarlight 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 MoneyStarlight Culture Entertainment Group Limited generates revenue through multiple streams within the entertainment sector. The company earns money primarily from the production and distribution of film and television content. Revenue is generated from licensing content to various platforms, including theaters, television networks, and digital streaming services. Additionally, the company may engage in co-productions and partnerships with other entertainment firms, which can provide both upfront funding and shared revenue opportunities. Furthermore, Starlight Culture may also receive income from ancillary markets such as merchandise, home video sales, and international distribution agreements.

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. Despite some operational improvement, the overall financial health remains precarious with liquidity and solvency risks.
Income Statement
45
Neutral
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
30
Negative
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
25
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue40.37M80.34M60.25M199.39M47.76M
Gross Profit37.95M8.06M4.03M-95.39M-28.24M
EBITDA22.30M40.00M-101.05M-396.19M-130.73M
Net Income-28.38M-45.72M-135.87M-399.26M-162.28M
Balance Sheet
Total Assets442.76M476.53M566.72M720.88M1.02B
Cash, Cash Equivalents and Short-Term Investments38.83M52.00M145.37M290.64M443.90M
Total Debt420.63M443.35M381.39M395.55M515.64M
Total Liabilities824.78M854.78M897.26M911.75M841.88M
Stockholders Equity-382.02M-377.74M-330.18M-189.85M202.55M
Cash Flow
Free Cash Flow18.88M-9.09M-65.62M105.36M-986.00K
Operating Cash Flow39.73M-9.08M-65.61M106.23M120.00K
Investing Cash Flow-2.31M104.00K-17.00K-820.00K-1.20M
Financing Cash Flow-50.37M-18.35M-29.34M-92.03M-36.38M

Starlight Culture Entertainment Group Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.06
Price Trends
50DMA
3.42
Negative
100DMA
2.82
Positive
200DMA
1.83
Positive
Market Momentum
MACD
-0.16
Negative
RSI
50.65
Neutral
STOCH
91.36
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1159, the sentiment is Positive. The current price of 3.06 is above the 20-day moving average (MA) of 2.89, below the 50-day MA of 3.42, and above the 200-day MA of 1.83, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 50.65 is Neutral, neither overbought nor oversold. The STOCH value of 91.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1159.

Starlight Culture Entertainment Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
56
Neutral
45.92B33.95-1.17%-13.62%-8.47%
51
Neutral
281.06M-2.580.00%-30.68%-63.06%
51
Neutral
425.88M290.00-1.34%206.38%0.00%
48
Neutral
HK$424.15M2.33
-57.01%
46
Neutral
131.75M-0.210.00%-7.95%-89.82%
45
Neutral
533.14M-9.17-22.73%-6.36%-166.67%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1159
Starlight Culture Entertainment Group Limited
3.02
1.88
164.91%
HK:0491
Emperor Culture Group
0.04
0.01
33.33%
HK:0391
Mei Ah Entertainment Group Limited
0.09
-0.05
-35.71%
HK:0953
Shaw Brothers Holdings Limited
0.29
0.19
190.00%
HK:1046
Universe Entertainment and Culture Group Company Limited
0.30
0.00
0.00%
HK:0136
China Ruyi Holdings Limited
2.90
0.84
40.78%

Starlight Culture Entertainment Group Limited Corporate Events

Smart Digital Technology Group Eyes Major Acquisition in Shanghai
Aug 20, 2025

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
Aug 15, 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.

Smart Digital Technology Group to Announce Interim Results
Aug 4, 2025

Smart Digital Technology Group Limited has announced a board meeting scheduled for August 15, 2025, to approve and publish the interim results for the first half of 2025. This meeting is significant as it will provide insights into the company’s performance and strategic direction, potentially impacting its market positioning and stakeholder interests.

Smart Digital Technology Group Announces Positive Profit Alert for H1 2025
Jul 31, 2025

Smart Digital Technology Group Limited, listed on the Hong Kong Stock Exchange, has announced a positive profit alert for the first half of 2025. The company expects a significant turnaround with a projected net profit between HK$145.0 million and HK$155.0 million, compared to a loss in the same period last year, primarily due to a one-off net gain from the disposal of subsidiaries.

Smart Digital Technology Group Expands Business Ventures and Strengthens Financial Position
Jul 29, 2025

Smart Digital Technology Group Limited, along with its subsidiaries, operates in the technology sector, focusing on digital innovations and new business ventures such as short video production, web series drama, metaverse, and new energy business. The company has recently completed two rounds of share placements, raising net proceeds of HK$6.9 million and HK$38.7 million respectively, which are intended for debt repayment, working capital replenishment, and new business development. The Group is actively negotiating loan extensions and has settled significant loan amounts, while also securing copyrights for novel adaptations and entering strategic partnerships in the energy sector to enhance its revenue streams and shareholder returns.

Starlight Culture Completes HK$38.7 Million Share Placement
Jul 25, 2025

Starlight Culture Entertainment Group Limited has successfully completed the placing of 23,600,000 new shares under a general mandate. This placement, which represents about 16.64% of the company’s enlarged share capital, raised approximately HK$38.7 million in net proceeds. The funds will be used for debt repayment, development of new business opportunities, and replenishment of working capital. The placing did not result in any new substantial shareholders, as all placees are independent third parties.

Smart Digital Technology Group Cancels Extension of Long Stop Date and Resumes Trading
Jul 25, 2025

Smart Digital Technology Group Limited, a company incorporated in Bermuda, announced the cancellation of the extension of the Long Stop Date related to the placing of new shares under a general mandate. The Long Stop Date will remain as 25 July 2025, and trading in the company’s shares, which was suspended, will resume on the same day. This decision may impact shareholders and potential investors, who are advised to exercise caution.

Smart Digital Technology Group Announces Trading Halt Pending Inside Information Release
Jul 25, 2025

Smart Digital Technology Group Limited, a company listed on the Hong Kong Stock Exchange, has announced a trading halt in its securities. This decision was made pending the release of an announcement related to inside information, which could have significant implications for the company’s operations and stakeholders.

Smart Digital Technology Extends Share Placement Deadline
Jul 24, 2025

Smart Digital Technology Group Limited has announced an extension of the Long Stop Date related to the placement of new shares under a general mandate. The company and its placing agent have agreed to extend the deadline from July 25, 2025, to July 30, 2025, allowing more time to fulfill the conditions precedent of the Placing Agreement. This extension highlights the company’s ongoing efforts to meet necessary conditions for the share placement, which may impact shareholder and investor decisions.

Smart Digital Technology Group’s Strategic Share Placement Plan
Jul 16, 2025

Smart Digital Technology Group Limited has announced a supplemental plan for placing new shares under a general mandate, intending to raise approximately HK$38.7 million. The proceeds will be allocated towards debt repayment, development of new business opportunities, and replenishment of working capital, with specific timelines for each use, potentially impacting the company’s financial stability and growth prospects.

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: Sep 14, 2025