Starlight Culture Entertainment Group Limited (1159) AI Stock Analysis

• Market Cap: HK$464.75M
• Dividend Yield: N/A
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: -49.75%
• EPS Growth: 48.12%
• Country: HK
• Employees: 20
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Entertainment
• EPS (TTM): -0.29
• Shares Outstanding: 118,256,480
• 10 Day Avg. Volume: 660,166
• 30 Day Avg. Volume: 1,324,444
• PEG Ratio: 0.07
• Price to Book (P/B): -0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -22.56
• 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: 37 Underperform
• Price Target: ―

Starlight Culture Entertainment Group Limited is currently facing severe financial difficulties, with significant liabilities and ongoing losses. This is reflected in its low financial performance score. The technical analysis suggests a lack of strong momentum, and the valuation indicates challenges with profitability. These factors result in a low overall stock score, highlighting substantial risks for potential investors.

Starlight Culture Entertainment Group Limited Business Overview & Revenue Model

Company Description

Starlight Culture Entertainment Group Limited (1159) is an entertainment company that operates primarily in the film and television industry. The company engages in the development, production, and distribution of various media content, including films, television series, and other entertainment projects. Starlight Culture focuses on creating high-quality content for global audiences, leveraging its strategic partnerships and expertise in storytelling to deliver engaging and innovative entertainment experiences.

How the Company Makes Money

Starlight Culture Entertainment Group Limited generates revenue through multiple streams primarily related to its core activities in the entertainment sector. The company earns money from the production and distribution of films and television series, including box office sales, licensing deals, and syndication of content to various media platforms. Significant partnerships with production companies, broadcasters, and streaming services further bolster its revenue by providing additional avenues for content distribution and monetization. Additionally, Starlight Culture may engage in co-production agreements and strategic collaborations that enhance its market reach and financial returns.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
40.37M	80.34M	60.25M	199.39M	47.76M
	Gross Profit
37.95M	8.06M	4.03M	-95.39M	-28.24M
	EBIT
21.76M	-29.36M	-105.14M	-88.76M	-63.85M
	EBITDA
22.30M	40.00M	-101.05M	-396.19M	-130.73M
	Net Income Common Stockholders
-28.38M	-45.72M	-135.87M	-399.26M	-162.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
38.83M	52.00M	145.37M	290.64M	443.90M
	Total Assets
442.76M	476.53M	566.72M	720.88M	1.02B
	Total Debt
420.63M	443.35M	381.39M	395.55M	515.64M
	Net Debt
381.80M	391.35M	301.97M	238.44M	372.80M
	Total Liabilities
824.78M	854.78M	897.26M	911.75M	841.88M
	Stockholders Equity
-382.02M	-377.74M	-330.18M	-189.85M	202.55M
Cash Flow		Free Cash Flow
0.00	-9.09M	-65.62M	105.36M	-986.00K
	Operating Cash Flow
0.00	-9.08M	-65.61M	106.23M	120.00K
	Investing Cash Flow
0.00	104.00K	-17.00K	-820.00K	-1.20M
	Financing Cash Flow
0.00	-18.35M	-29.34M	-92.03M	-36.38M

Starlight Culture Entertainment Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 4.01 is above the 20-day moving average (MA) of 2.45, above the 50-day MA of 1.33, and above the 200-day MA of 1.11, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 83.35 is Negative, neither overbought nor oversold. The STOCH value of 82.40 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
1060	58 Neutral	HK$30.77B	75.37	2.29%	―	24.36%	-18.99%
3918	58 Neutral	$16.94B	19.17	5.24%	―	5.15%	-38.63%
1132	41 Neutral	HK$125.99M	―	-12.77%	―	-8.19%	-498.76%
1159	37 Underperform	HK$464.75M	―		―	-49.75%	48.12%

Starlight Culture Entertainment Group Limited Corporate Events

Smart Digital Technology Reports Decreased Revenue and Increased Loss for 2024

Smart Digital Technology Group Limited has announced its audited annual consolidated results for the year ended December 31, 2024. The company reported a significant decrease in revenue from HK$80,336,000 in 2023 to HK$40,369,000 in 2024, resulting in a gross profit of HK$40,369,000. Despite other income and gains increasing and a net reversal of impairment on trade receivables, the company faced substantial finance costs and changes in fair value of financial liabilities, leading to a loss before tax of HK$26,051,000 and a total loss for the year of HK$28,382,000.

Smart Digital Technology Group to Announce Annual Results

Smart Digital Technology Group Limited has announced that its board of directors will hold a meeting on March 28, 2025, to approve and publish the audited annual results for the financial year ending December 31, 2024. This meeting is a significant step for the company as it will provide insights into its financial performance, potentially impacting its market positioning and stakeholder confidence.