Starlight Culture Entertainment Group Limited (1159) AI Stock Analysis

• Market Cap: HK$249.67M
• Dividend Yield: N/A
• Average Volume (3M): 231.38K
• Price to Earnings (P/E): 1.3
• Beta (1Y): 0.42
• 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 ▲(13.64% 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 (1159) is a leading company in the entertainment and cultural sectors, primarily focusing on the production and distribution of films, television shows, and other media content. The company is also involved in talent management and event organization, offering a wide range of services that cater to various aspects of the entertainment industry. With a commitment to promoting cultural exchange and entertainment innovation, Starlight aims to create engaging content that resonates with audiences both domestically and internationally.

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: 1.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.76 is below the 20-day moving average (MA) of 1.89, below the 50-day MA of 2.14, and below the 200-day MA of 2.20, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 33.88 is Neutral, neither overbought nor oversold. The STOCH value of 35.25 is Neutral, 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$367.19M	-5.81	-23.06%	―	29.39%	-107.44%
0136	51 Neutral	HK$36.25B	27.53	7.01%	―	-13.62%	-8.47%
0391	48 Neutral	HK$592.37M	-16.13	-14.60%	―	-44.93%	30.34%
0491	46 Neutral	HK$112.47M	-0.79	―	―	-2.81%	80.19%
0953	45 Neutral	HK$390.39M	275.00	0.29%	―	206.38%	―
1159	43 Neutral	HK$249.67M	1.34	―	―	-57.01%	―

Starlight Culture Entertainment Group Limited Corporate Events

Leadership Reshuffle at Starlight Culture Entertainment Group

Starlight Culture Entertainment Group Limited has announced significant changes in its board composition, with the resignation of Mr. Sang Kangqiao as executive director and co-chairman due to other business commitments. Mr. Jing Xufeng will now serve as the sole chairman of the board and has also been appointed as an authorized representative of the company. These changes reflect a strategic shift in leadership, potentially impacting the company’s direction and stakeholder relations.

Starlight Culture Entertainment Group Updates Board Composition

Starlight Culture Entertainment Group Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. The board comprises both executive and independent non-executive directors, with Mr. Jing Xufeng serving as Chairman and Mr. Luo Lei as the Chief Executive Officer. The announcement outlines the membership of six board committees, indicating the leadership roles and responsibilities of each director within these committees. This organizational update is significant for stakeholders as it clarifies the governance structure and leadership dynamics within the company, potentially impacting its strategic direction and operational efficiency.

Smart Digital Technology Group Forms Strategic Partnership with Potevio Rail

Smart Digital Technology Group Limited has entered into a strategic cooperation agreement with Potevio Rail Transit Technology (Shanghai) Co., Ltd., a company engaged in rail transit and smart technology sectors in China. This partnership aims to enhance the Group’s presence in artificial intelligence fields related to rail transit, potentially broadening its revenue base and increasing returns for shareholders.