STAR CM Holdings Limited (6698) AI Stock Analysis

• Market Cap: HK$797.08M
• Dividend Yield: N/A
• Average Volume (3M): 323.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: -57.29%
• EPS Growth: 88.62%
• Country: HK
• Employees: 127
• Sector: Communication Services
• Sector Strength: 92
• Industry: Entertainment
• EPS (TTM): -0.03
• Shares Outstanding: 398,538,180
• 10 Day Avg. Volume: 349,580
• 30 Day Avg. Volume: 323,490
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: HK$2.00
• Price Target Upside: 8.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: HK$2.00 ▲(8.70% Upside)

The overall stock score of 48 reflects significant operational challenges and poor financial performance, with declining revenues and negative profitability metrics. Technical analysis shows mixed signals, with short-term bullishness but long-term bearish trends. Valuation is unattractive due to a negative P/E ratio and no dividend yield.

STAR CM Holdings Limited Business Overview & Revenue Model

Company Description

STAR CM Holdings Limited (6698) is a leading provider in the field of digital entertainment and media, primarily focusing on music and content production, distribution, and licensing. The company operates within the entertainment sector, offering a comprehensive range of services designed to enhance the music experience for consumers and creators alike. STAR CM Holdings Limited aims to leverage its industry expertise and innovative solutions to deliver high-quality entertainment content to a diverse audience.

How the Company Makes Money

STAR 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

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: 1.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 1.84 is below the 20-day moving average (MA) of 2.07, below the 50-day MA of 2.03, and below the 200-day MA of 2.72, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 29.94 is Positive, neither overbought nor oversold. The STOCH value of 9.38 is Positive, 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$587.32M	11.17	8.70%	4.78%	32.53%	7.06%
Sector *	60 Neutral	$44.05B	4.50	-12.81%	4.08%	1.86%	-43.08%
2125	55 Neutral	HK$416.56M	―	-0.12%	―	30.84%	98.34%
6698	48 Neutral	HK$797.08M	―	-6.83%	―	-57.29%	88.62%
0391	46 Neutral	HK$562.76M	―	-20.32%	―	-6.36%	-166.67%
1003	43 Neutral	HK$1.33B	―		―	―	―
1326	39 Underperform	HK$109.02M	―		―	60.31%	-73.59%

STAR CM Holdings Limited Corporate Events

STAR CM Holdings Reports Significant Reduction in Net Loss for H1 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

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.