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

Starlight Culture Entertainment Group Limited (1159) AI Stock Analysis

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Starlight Culture Entertainment Group Limited

(1159)

Rating:56Neutral
Price Target:
HK$3.50
▼(-9.09%Downside)
The most significant factor is the company's weak financial performance, marked by high leverage and liquidity risks, which severely impacts the score. Despite these challenges, the stock exhibits strong technical momentum, which partially offsets the financial weaknesses. Valuation concerns also weigh on the score, given ongoing losses and lack of dividends.

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 (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 MoneyStarlight 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
The company faces significant financial challenges, with negative profitability, a highly leveraged balance sheet, and weak cash flow performance. Despite some operational improvements, the overall financial health remains precarious, indicating a need to address 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 Price3.85
Price Trends
50DMA
2.11
Positive
100DMA
1.36
Positive
200DMA
1.23
Positive
Market Momentum
MACD
0.10
Positive
RSI
57.00
Neutral
STOCH
67.70
Neutral
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 3.85 is above the 20-day moving average (MA) of 2.99, above the 50-day MA of 2.11, and above the 200-day MA of 1.23, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 57.00 is Neutral, neither overbought nor oversold. The STOCH value of 67.70 is Neutral, 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 (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
56
Neutral
HK$24.58B3.79-2.03%6.58%-0.32%-67.68%
56
Neutral
HK$455.29M
-49.75%48.12%
52
Neutral
HK$303.72M-36.91%-30.68%-63.06%
51
Neutral
HK$205.84M-1.32%-21.40%-100.00%
48
Neutral
HK$42.21B27.01-1.40%0.52%-124.50%
46
Neutral
HK$574.60M-20.32%27.72%-117.07%
41
Neutral
HK$106.04M
-7.95%-89.82%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1159
Starlight Culture Entertainment Group Limited
3.31
1.11
50.45%
HK:0136
China Ruyi Holdings Limited
2.80
0.72
34.62%
HK:1046
Universe Entertainment and Culture Group Company Limited
0.52
0.12
30.00%
HK:0953
Shaw Brothers Holdings Limited
0.16
0.04
33.33%
HK:0491
Emperor Culture Group
0.03
-0.01
-25.00%
HK:0391
Mei Ah Entertainment Group Limited
0.10
-0.02
-16.67%

Starlight Culture Entertainment Group Limited Corporate Events

Starlight Culture Entertainment Group Announces Share Placement
Jul 4, 2025

Starlight Culture Entertainment Group Limited has announced a placing of new shares under a general mandate. The company has entered into a placing agreement with a sole agent to issue up to 23,600,000 new shares at a price of HK$1.69 per share, representing a discount to recent trading prices. The proceeds, estimated at approximately HK$38.7 million after expenses, will be used to repay debts, explore new business opportunities, and replenish working capital. The placing is not subject to shareholder approval and is contingent upon certain conditions being met.

Starlight Culture Entertainment Group Updates Nomination Committee Terms
Jul 2, 2025

Starlight Culture Entertainment Group Limited has revised the terms of reference for its Nomination Committee, which was initially established in 2012. The committee is responsible for overseeing the nomination process for board members, ensuring diversity and independence among its members. The updated terms emphasize the importance of having a majority of independent non-executive directors and include provisions for appointing and removing committee members, as well as designating a chairman. This revision aims to enhance the governance structure of the company, potentially impacting its operational efficiency and stakeholder confidence.

Smart Digital Technology Group Limited AGM Resolutions Unanimously Passed
Jun 27, 2025

Smart Digital Technology Group Limited, a company incorporated in Bermuda, held its Annual General Meeting on June 27, 2025. During the meeting, all resolutions proposed were unanimously approved by the shareholders through a poll. These resolutions included the acceptance of the audited financial statements for the year ending December 31, 2024, the re-election of executive directors Mr. Jing Xufeng and Mr. Sang Kangqiao, and independent non-executive director Mr. Wu Hongliang, as well as the authorization for the board to set directors’ remunerations. Additionally, Prism Hong Kong Limited was re-appointed as the company’s auditor.

Smart Digital Technology Completes HK$6.9 Million Share Placement
Jun 2, 2025

Smart Digital Technology Group Limited has successfully completed the placement of 19,700,000 new shares under its General Mandate, representing approximately 16.66% of the company’s enlarged share capital. The placement, which raised net proceeds of approximately HK$6.9 million, aims to repay debts and bolster the company’s working capital, potentially strengthening its financial position and operational capabilities.

Smart Digital Technology Group Announces 2025 AGM
May 26, 2025

Smart Digital Technology Group Limited has announced its Annual General Meeting (AGM) scheduled for June 27, 2025, in Hong Kong. The meeting will address several key resolutions including the approval of the audited financial statements for the year ending December 31, 2024, re-election of directors, re-appointment of the auditor, and authorization for the board to manage remuneration and share capital issuance. These resolutions, if passed, will enable the company to continue its operations smoothly and potentially expand its capital base, impacting its strategic positioning and shareholder value.

Smart Digital Technology Group Takes Strategic Steps to Enhance Financial Stability
May 23, 2025

Smart Digital Technology Group Limited, along with its subsidiaries, is actively working to address financial challenges and improve its liquidity position. The company is conducting a placing of new shares to raise approximately HK$6.9 million, which will be used to repay debts and replenish working capital. Additionally, the group is negotiating with lenders for loan renewals, exploring new business opportunities in the metaverse and new energy sectors, implementing cost control strategies, and acquiring copyrights for content production to enhance cash flow.

Starlight Culture Entertainment Adjusts Share Placing Price
May 12, 2025

Starlight Culture Entertainment Group Limited announced a supplemental agreement to its existing placing agreement, adjusting the placing price of new shares from HK$0.355 to HK$0.361. This adjustment represents discounts to the recent stock prices and is intended to raise approximately HK$6.9 million in net proceeds, which will be used to repay debts and enhance working capital.

Smart Digital Technology Group Announces Trading Halt Pending Inside Information Release
May 12, 2025

Smart Digital Technology Group Limited, listed on the Hong Kong Stock Exchange, has announced a trading halt of its securities effective from 9:00 a.m. on 12 May 2025. This halt is pending the release of an announcement related to inside information, indicating potentially significant developments that could impact the company’s operations or market position.

Starlight Culture Entertainment Group Announces Share Placement to Raise Capital
May 9, 2025

Starlight Culture Entertainment Group Limited has announced a placement of new shares under a general mandate. The company plans to issue a maximum of 19,700,000 shares at a price of HK$0.355 each, which represents a significant discount to recent trading prices. This move is expected to raise approximately HK$6.8 million in net proceeds, which will be used to repay debts and enhance the company’s working capital. The placement does not require shareholder approval and is subject to certain conditions. The successful completion of this placement could impact the company’s financial stability and market positioning.

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: Jul 09, 2025