STAR CM Holdings Limited (6698) AI Stock Analysis

• Market Cap: HK$793.09M
• Dividend Yield: N/A
• Average Volume (3M): 463.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.67
• Revenue Growth: -62.21%
• EPS Growth: 85.46%
• Country: HK
• Employees: 127
• Sector: Communication Services
• Sector Strength: 85
• Industry: Entertainment
• EPS (TTM): -0.48
• Shares Outstanding: 398,538,180
• 10 Day Avg. Volume: 642,950
• 30 Day Avg. Volume: 463,550
• PEG Ratio: -0.04
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.04
• 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: 47 Neutral
• Price Target: HK$2.00 ▲(0.50%Upside)

The overall stock score is heavily impacted by weak financial performance and poor valuation metrics. The technical analysis suggests a neutral to bearish outlook, further weighing down the score. The absence of positive earnings call data or notable corporate events leaves these areas unaddressed.

STAR CM Holdings Limited Business Overview & Revenue Model

Company Description

STAR CM Holdings Limited (6698) is a company engaged in the provision of comprehensive solutions to the digital entertainment industry. The company specializes in offering content creation technologies, including computer graphics and visual effects software, as well as services related to digital content production. Its core products and services are designed to enhance and streamline the creative processes involved in producing digital media, catering primarily to sectors such as film, television, gaming, and advertising.

How the Company Makes Money

STAR CM Holdings Limited generates revenue through multiple streams primarily centered around its digital content solutions. The company earns money by selling software licenses for its proprietary computer graphics and visual effects tools used by content creators. In addition to software sales, it also offers consulting and technical support services, which provide additional revenue. Furthermore, STAR CM Holdings may engage in partnerships with media and entertainment companies to collaborate on projects, enhancing its market reach and potential earnings. Significant factors contributing to its earnings include the growing demand for high-quality digital content across various media industries and the company's ability to innovate and adapt its solutions to meet evolving technological trends.

STAR CM Holdings Limited Financial Statement Overview

Summary

STAR CM Holdings Limited faces significant operational challenges, as evidenced by declining revenues and poor profitability metrics. Despite a solid balance sheet with low leverage, the company's inability to generate positive cash flow consistently from operations is worrying. The current trajectory suggests potential liquidity issues if operational performance does not improve.

Income Statement

Revenue has drastically declined from 2019 to 2024, with the latest figure at approximately 163 million, down from 1.8 billion in 2019. The gross profit margin turned negative in recent years, reflecting significant cost challenges. Net losses have widened, suggesting operational inefficiencies. Notably, EBIT and EBITDA margins have turned negative, indicating poor operational performance.

Balance Sheet

The company maintains a strong equity position with a high equity ratio, indicating a solid capital structure. However, the persistent net losses are eroding shareholder equity over time. The debt levels are manageable, as evidenced by a low debt-to-equity ratio, indicating low leverage risk.

Cash Flow

Operating cash flow has been volatile, recently dropping to zero, which raises concerns about cash generation from core operations. Free cash flow has been inconsistent but not deeply negative, indicating challenges in sustaining cash flow amidst operational losses. The lack of growth in free cash flow over recent years is concerning.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	163.15M	426.57M	873.42M	1.13B	1.56B
Gross Profit	39.98M	-59.35M	281.07M	274.35M	587.54M
EBITDA	-82.16M	-1.55B	164.58M	-281.60M	92.75M
Net Income	-232.54M	-1.60B	86.92M	-345.00M	-16.45M
Balance Sheet
Total Assets	2.90B	3.22B	5.00B	4.54B	5.11B
Cash, Cash Equivalents and Short-Term Investments	425.25M	353.88M	587.59M	547.18M	903.38M
Total Debt	6.89M	11.97M	15.56M	4.69M	113.95M
Total Liabilities	251.21M	345.70M	519.14M	496.61M	525.88M
Stockholders Equity	2.66B	2.88B	4.46B	3.99B	3.89B
Cash Flow
Free Cash Flow	-48.12M	10.78M	202.69M	-156.83M	372.16M
Operating Cash Flow	-33.03M	67.61M	326.24M	409.16M	398.21M
Investing Cash Flow	102.06M	-304.94M	-602.29M	-584.81M	-15.98M
Financing Cash Flow	-5.49M	1.68M	310.77M	-176.88M	-100.27M

STAR CM Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.99
• 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:6698, the sentiment is Negative. The current price of 1.99 is above the 20-day moving average (MA) of 1.99, below the 50-day MA of 2.02, and below the 200-day MA of 3.01, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 48.34 is Neutral, neither overbought nor oversold. The STOCH value of 34.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6698.

STAR CM Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2230	78 Outperform	HK$510.30M	9.71	9.05%	16.45%	5.26%	7.46%
Sector *	55 Neutral	HK$66.29B	-2.30	-3.61%	6.47%	-4.24%	-17.51%
2125	49 Neutral	HK$416.56M	―	-0.12%	―	30.84%	98.34%
6698	47 Neutral	HK$793.09M	―	-8.41%	―	-62.21%	85.46%
0391	46 Neutral	HK$562.76M	―	-20.32%	―	27.72%	-117.07%
1003	43 Neutral	HK$1.39B	―		―	―	―
1326	42 Neutral	HK$111.61M	―		―	60.31%	-73.59%

STAR CM Holdings Limited Corporate Events

STAR CM Holdings Clarifies AGM Poll Results and Auditor Appointment

STAR CM Holdings Limited announced a clarification regarding the poll results of its Annual General Meeting held on June 19, 2025. The company corrected an error in the name of its auditor, confirming Crowe (HK) CPA Limited as the appointed auditor with unanimous approval. This announcement does not affect any other information previously disclosed, and all resolutions were passed successfully.

STAR CM Holdings Limited Forms Nomination Committee to Enhance Governance

STAR CM Holdings Limited has established a Nomination Committee to oversee the nomination process for its board of directors, ensuring compliance with the Hong Kong Stock Exchange listing rules. The committee, comprising a majority of independent non-executive directors, is responsible for reviewing the board’s structure and composition, recommending new board members, and assessing the independence of directors, thereby enhancing the company’s governance and strategic alignment.

STAR CM Holdings Gains Unanimous Shareholder Approval at AGM

STAR CM Holdings Limited announced that all proposed resolutions were approved at its Annual General Meeting held on June 19, 2025. The resolutions included the adoption of the company’s financial statements for 2024, the re-election of directors, the re-appointment of Ernst & Young as auditors, and the granting of mandates for share issuance and repurchase. This unanimous approval reflects strong shareholder support and provides the company with the flexibility to manage its capital structure effectively.