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STAR CM Holdings Limited (HK:6698)
:6698
Hong Kong Market
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STAR CM Holdings Limited (6698) AI Stock Analysis

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HK:6698

STAR CM Holdings Limited

(6698)

Rating:52Neutral
Price Target:
HK$2.00
▼(-3.38% Downside)
The overall stock score of 52 reflects significant financial performance challenges, particularly in revenue decline and profitability. Technical analysis provides some short-term positive signals, but the long-term trend remains bearish. The valuation is unattractive due to negative earnings and lack of dividends. These factors collectively suggest caution for potential investors.

STAR CM Holdings Limited (6698) vs. iShares MSCI Hong Kong ETF (EWH)

STAR CM Holdings Limited Business Overview & Revenue Model

Company DescriptionStar CM Holdings Limited engages in the production, operation, and licensing of variety programs intellectual properties (IPs) in the People's Republic of China. The company creates, distributes, and licenses variety programs, such as music variety programs, dance variety programs, talent shows, talk shows, outdoor/cultural variety programs, and other variety programs on various media platforms, including TV networks and online video platforms. It also produces and licenses music IPs, such as music recordings and compositions to online music platforms, media companies, and karaoke operators; operates and licenses film and drama series IPs; and licenses the right to host offline entertainment events. In addition, the company offers artist management services; arts education and training services; concert organization and production services; mobile apps; consumer products; and themed attractions. The company was founded in 2006 and is based in Shanghai, China.
How the Company Makes MoneySTAR CM Holdings Limited generates revenue through multiple streams, primarily focusing on music production, distribution, and licensing. The company earns income by producing and distributing digital music content across various platforms, including streaming services and online stores. Additionally, STAR CM Holdings Limited licenses its music portfolio to third-party media producers, broadcasters, and advertisers, earning royalties and licensing fees. Strategic partnerships with music streaming platforms and media companies further bolster its revenue, as these collaborations expand its content reach and audience engagement. These diversified revenue streams, along with its strong industry presence, contribute significantly to the company's financial performance.

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
45
Neutral
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
60
Neutral
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
50
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue163.15M426.57M873.42M1.13B1.56B
Gross Profit39.98M-59.35M281.07M274.35M587.54M
EBITDA-82.16M-1.55B164.58M-281.60M92.75M
Net Income-232.54M-1.60B86.92M-345.00M-16.45M
Balance Sheet
Total Assets2.90B3.22B5.00B4.54B5.11B
Cash, Cash Equivalents and Short-Term Investments425.25M353.88M587.59M547.18M903.38M
Total Debt6.89M11.97M15.56M4.69M113.95M
Total Liabilities251.21M345.70M519.14M496.61M525.88M
Stockholders Equity2.66B2.88B4.46B3.99B3.89B
Cash Flow
Free Cash Flow-48.12M10.78M202.69M-156.83M372.16M
Operating Cash Flow-33.03M67.61M326.24M409.16M398.21M
Investing Cash Flow102.06M-304.94M-602.29M-584.81M-15.98M
Financing Cash Flow-5.49M1.68M310.77M-176.88M-100.27M

STAR CM Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.07
Price Trends
50DMA
2.05
Positive
100DMA
1.99
Positive
200DMA
2.86
Negative
Market Momentum
MACD
0.01
Negative
RSI
53.67
Neutral
STOCH
40.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6698, the sentiment is Positive. The current price of 2.07 is above the 20-day moving average (MA) of 2.04, above the 50-day MA of 2.05, and below the 200-day MA of 2.86, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 53.67 is Neutral, neither overbought nor oversold. The STOCH value of 40.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6698.

STAR CM Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
HK$529.56M10.078.70%5.32%5.26%7.46%
60
Neutral
$41.55B-3.92-10.69%4.12%2.82%-46.90%
52
Neutral
HK$813.02M-8.41%-62.21%85.46%
49
Neutral
HK$409.50M-0.12%30.84%98.34%
46
Neutral
HK$562.76M-20.32%27.72%-117.07%
43
Neutral
HK$1.24B
39
Underperform
HK$109.02M
60.31%-73.59%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6698
STAR CM Holdings Limited
2.08
-0.91
-30.43%
HK:0391
Mei Ah Entertainment Group Limited
0.10
-0.04
-28.57%
HK:1003
Huanxi Media Group Ltd.
0.32
-0.23
-41.82%
HK:1326
Transmit Entertainment Ltd.
0.04
0.01
33.33%
HK:2125
Strawbear Entertainment Group
0.58
0.10
20.83%
HK:2230
Medialink Group Ltd.
0.26
0.12
85.71%

STAR CM Holdings Limited Corporate Events

STAR CM Holdings Reports Significant Reduction in Net Loss for H1 2025
Aug 7, 2025

STAR CM Holdings Limited announced a significant reduction in net loss for the first half of 2025, expecting a net loss between RMB10.0 million and RMB12.5 million compared to RMB56.0 million in the same period of 2024. This improvement is attributed to generating gross profit from its variety program IP operations and a reduction in administrative expenses, indicating a strategic shift in focus that may positively impact its financial stability and market positioning.

STAR CM Holdings Clarifies AGM Poll Results and Auditor Appointment
Jun 23, 2025

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
Jun 19, 2025

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
Jun 19, 2025

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.

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: Aug 08, 2025