STAR CM Holdings Limited (6698) AI Stock Analysis

• Market Cap: HK$478.25M
• Dividend Yield: N/A
• Average Volume (3M): 361.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.78
• Revenue Growth: -57.29%
• EPS Growth: 88.62%
• Country: HK
• Employees: 127
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -0.03
• Shares Outstanding: 398,538,180
• 10 Day Avg. Volume: 263,200
• 30 Day Avg. Volume: 361,883
• PEG Ratio: 0.07
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 8.53
• P/FCF Ratio: -28.94
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$1.00 ▼(-16.67% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues and negative profitability metrics. Technical analysis indicates a bearish trend, further weighing down the score. Valuation metrics are unfavorable due to negative earnings and lack of dividends. The absence of earnings call insights and corporate events leaves these areas unaddressed.

Positive Factors

Low Leverage

Low leverage provides financial stability and flexibility, allowing the company to navigate through operational challenges without the immediate pressure of high debt obligations.

Solid Capital Structure

A strong capital structure with high equity supports long-term resilience and potential for future growth investments, even amidst current operational difficulties.

EPS Growth

Significant EPS growth indicates potential for improved profitability, suggesting that operational efficiencies or strategic initiatives may be positively impacting earnings.

Negative Factors

Declining Revenue

A sharp decline in revenue highlights significant operational challenges and market position deterioration, which could undermine long-term growth prospects if not addressed.

Negative Profitability

Negative profitability metrics indicate operational inefficiencies and cost management issues, which could threaten the company's ability to sustain operations and invest in growth.

Cash Flow Volatility

Volatile cash flow generation from operations raises concerns about the company's ability to fund ongoing activities and strategic initiatives, potentially impacting long-term viability.

STAR CM Holdings Limited Business Overview & Revenue Model

Company Description

STAR CM Holdings Limited (6698) is a Hong Kong-based investment holding company that primarily operates in the financial services sector. The company focuses on providing a range of financial solutions, including asset management, investment advisory, and securities trading services. STAR CM Holdings aims to leverage its expertise in market analysis and investment strategies to cater to both retail and institutional clients, facilitating their financial growth and wealth management needs.

How the Company Makes Money

The company generates revenue through various streams, primarily from fees charged for its asset management and investment advisory services. This includes management fees based on the assets under management (AUM) as well as performance fees tied to the returns generated on client investments. Additionally, STAR CM Holdings earns income from securities trading activities, capturing commissions on trades executed on behalf of clients. Strategic partnerships with financial institutions and other entities also enhance its service offerings and broaden its client base, contributing to sustained revenue growth.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	151.07M	163.15M	426.57M	873.42M	1.13B	1.56B
Gross Profit	55.36M	39.98M	-59.35M	281.07M	274.35M	587.54M
EBITDA	-57.26M	-82.16M	-1.55B	107.83M	-281.60M	92.75M
Net Income	-186.75M	-232.54M	-1.60B	86.92M	-345.00M	-16.45M
Balance Sheet
Total Assets	2.83B	2.90B	3.22B	5.00B	4.54B	5.11B
Cash, Cash Equivalents and Short-Term Investments	532.88M	425.25M	353.88M	587.59M	547.18M	903.38M
Total Debt	6.66M	6.89M	11.97M	15.56M	4.69M	113.95M
Total Liabilities	197.31M	251.21M	345.70M	519.14M	496.61M	525.88M
Stockholders Equity	2.64B	2.66B	2.88B	4.46B	3.99B	3.89B
Cash Flow
Free Cash Flow	6.03M	-48.12M	10.78M	202.69M	-156.83M	372.16M
Operating Cash Flow	-4.71M	-33.03M	67.61M	326.24M	409.16M	398.21M
Investing Cash Flow	-17.33M	102.06M	-304.94M	-602.29M	-584.81M	-15.98M
Financing Cash Flow	0.00	-5.49M	1.68M	310.77M	-176.88M	-100.27M

STAR CM Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.20
• 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 1.2 is above the 20-day moving average (MA) of 1.17, below the 50-day MA of 1.36, and below the 200-day MA of 1.87, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 40.31 is Neutral, neither overbought nor oversold. The STOCH value of 54.76 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	66 Neutral	HK$471.79M	8.45	8.69%	6.04%	25.88%	0.69%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
0391	48 Neutral	HK$592.37M	-16.13	-14.60%	―	-44.93%	30.34%
2125	47 Neutral	HK$342.43M	-8.25	-2.12%	―	-41.22%	54.66%
1003	46 Neutral	HK$1.12B	―	―	―	―	―
6698	46 Neutral	HK$478.25M	-2.22	-6.83%	―	-57.29%	88.62%
1326	39 Underperform	HK$70.08M	-0.21	―	―	60.31%	-73.59%

STAR CM Holdings Limited Corporate Events

STAR CM Holdings Enters AI Music Joint Venture

STAR CM Holdings Limited, through its subsidiary Shanghai Jiuwu Yisheng, has entered into a joint venture agreement with an unnamed partner to establish a company focused on AI music business in China. The joint venture will involve a total investment of RMB359,380,000, with Shanghai Jiuwu Yisheng contributing 32% and the joint venture partner contributing 68%. This strategic move positions STAR CM Holdings to capitalize on the growing AI music industry, potentially enhancing its market presence and offering new opportunities for stakeholders.