China Star Entertainment (0326) AI Stock Analysis

• Market Cap: HK$3.38B
• Dividend Yield: N/A
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: 253.21%
• EPS Growth: -23.13%
• Country: HK
• Employees: 237
• Sector: Services
• Sector Strength: N/A
• Industry: Entertainment
• EPS (TTM): -0.09
• Shares Outstanding: 2,428,906,300
• 10 Day Avg. Volume: 410,837
• 30 Day Avg. Volume: 1,163,313
• PEG Ratio: N/A
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 58.30
• 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

China Star Entertainment faces significant financial challenges with persistent net losses and negative profitability margins, impacting its overall financial performance. While technical indicators show strong upward momentum, caution is advised due to potential overbought signals. The valuation metrics, including a negative P/E ratio, further reflect the company's financial struggles. Despite promising revenue growth, the company's financial instability and liquidity concerns weigh heavily on the stock's attractiveness.

China Star Entertainment Business Overview & Revenue Model

Company Description

China Star Entertainment Limited, an investment holding company, engages in the investment, production, distribution, and licensing of films and television drama series in Hong Kong, Macau, the People's Republic of China, and Taiwan. The company operates through two segments, Film Related Business Operations, and Property Development and Investment Operations. It is also involved in the provision of other film related services, including artist management and agency services; and investment and development of properties. In addition, the company offers corporate planning, props and equipment rental, and dramatic creation; art piece investment and rental; property and construction project management; motion pictures and video rights distribution; film production services, including pre-production, production or shooting, and post-production; nominee; and song rights, trademarks, and copyrights holding and licensing services. Further, it provides property agency and management services, as well as holds cable rights. The company was incorporated in 1992 and is headquartered in Central, Hong Kong. China Star Entertainment Limited is a subsidiary of Heung Wah Keung Family Endowment Limited.

How the Company Makes Money

China Star Entertainment primarily generates revenue through its film production and distribution activities. The company produces films that are released in theaters, sold to broadcasters, and distributed on digital platforms, earning income from box office sales, licensing fees, and streaming rights. Additionally, China Star Entertainment invests in property development, which contributes to its earnings through the sale and leasing of developed properties. The company may also engage in strategic partnerships and collaborations with other entertainment entities to expand its market reach and enhance its revenue streams.

China Star Entertainment Financial Statement Overview

Summary

China Star Entertainment faces considerable financial hurdles across its financial statements. While revenue growth is promising, the company struggles with profitability, as evidenced by significant net losses and negative profit margins. The balance sheet showcases a moderate debt load, but persistent losses undermine financial stability. A lack of positive cash flow metrics further exacerbates liquidity concerns, necessitating strategic interventions to enhance operational efficiency and financial health.

Income Statement

The income statement reveals significant financial challenges. The gross profit margin for 2024 is 15.45%, indicating some ability to cover direct costs. However, the net profit margin is deeply negative at -48.33%, reflecting substantial losses. Revenue growth is notable at 253% from 2023 to 2024, suggesting a recovery trajectory, but persistent negative EBIT and EBITDA margins highlight ongoing operational inefficiencies.

Balance Sheet

The balance sheet shows a mixed financial position. The debt-to-equity ratio of 0.79 in 2024 indicates moderate leverage. However, the return on equity is negative due to net losses, signaling inefficiencies in generating shareholder value. The equity ratio of 48.85% suggests a relatively strong capital base, but overall stability is compromised by persistent losses.

Cash Flow

The cash flow statement reflects a lack of operational cash inflows, with no operating cash flow or free cash flow reported for 2024. The absence of cash flow metrics such as free cash flow growth and cash flow ratios points to potential liquidity issues and challenges in sustaining operations without external funding.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
728.22M	206.17M	3.88M	3.72M	3.65M
	Gross Profit
112.53M	69.33M	-3.40M	-5.92M	-8.65M
	EBIT
-214.50M	-145.16M	-103.40M	-96.61M	-97.83M
	EBITDA
-186.69M	-133.04M	-83.97M	-137.31M	-95.77M
	Net Income Common Stockholders
-351.93M	-289.48M	-94.10M	-156.50M	-110.43M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
542.70M	248.83M	251.89M	278.30M	742.13M
	Total Assets
4.21B	5.18B	5.25B	5.29B	5.34B
	Total Debt
1.63B	1.80B	1.70B	1.58B	1.30B
	Net Debt
1.50B	1.67B	1.62B	1.48B	797.25M
	Total Liabilities
2.15B	2.52B	2.30B	2.22B	1.91B
	Stockholders Equity
2.05B	2.66B	2.95B	3.06B	3.43B
Cash Flow		Free Cash Flow
0.00	41.66M	-94.01M	-344.21M	-282.86M
	Operating Cash Flow
0.00	59.21M	-93.83M	-343.40M	-280.67M
	Investing Cash Flow
0.00	37.65M	-2.12M	-53.48M	163.79M
	Financing Cash Flow
0.00	-61.54M	97.83M	60.37M	117.35M

China Star Entertainment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0326, the sentiment is Positive. The current price of 1.42 is below the 20-day moving average (MA) of 1.54, above the 50-day MA of 1.25, and above the 200-day MA of 0.71, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 48.32 is Neutral, neither overbought nor oversold. The STOCH value of 26.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0326.

China Star Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	58 Neutral	$948.78M	6.63	2.42%	3.93%	10.54%	-75.09%
8066	57 Neutral	HK$72.50M	153.33	1.12%	―	-24.68%	-89.16%
1046	56 Neutral	HK$453.32M	―	-36.91%	―	-30.68%	-63.06%
1030	50 Neutral	HK$13.44B	25.30	1.07%	―	-26.43%	―
8071	41 Neutral	HK$164.01M	―	-69.43%	―	22.29%	27.27%
0326	40 Underperform	HK$3.38B	―	-14.94%	―	253.21%	-23.13%
8079	24 Underperform	HK$11.20M	―	-93.49%	―	-10.34%	-130.73%

China Star Entertainment Corporate Events

China Star Entertainment Reports Increased Revenue but Sustains Losses in 2024

China Star Entertainment Limited has announced its final results for the year ended December 31, 2024, reporting a significant increase in revenue to HK$728,216,000 compared to HK$206,168,000 in 2023. Despite the revenue growth, the company experienced a substantial loss of HK$350,629,000, attributed to increased administrative and marketing expenses, as well as a loss from changes in the fair value of financial assets.

China Star Entertainment Issues Profit Warning for 2024

China Star Entertainment Limited has issued a profit warning, indicating an expected consolidated loss between HK$315 million to HK$385 million for the year ending December 31, 2024, compared to a loss of HK$289.5 million in the previous year. The increase in loss is mainly due to a significant rise in the fair value loss of financial assets, increased administrative expenses, and higher marketing and selling expenses. Despite these challenges, there was an increase in gross profit from property development and entertainment operations, partially offsetting the losses.

China Star Entertainment Schedules Board Meeting for Year-End Results

China Star Entertainment Limited has announced that its board of directors will meet on March 28, 2025, to consider and approve the company’s final results for the year ending December 31, 2024, and to discuss the payment of a final dividend. This announcement could impact the company’s financial positioning and shareholder returns, as the approval of final results and potential dividends are crucial for investor confidence and market perception.