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China Star Entertainment (0326) AI Stock Analysis

HK:0326

China Star Entertainment

(HKEX:0326)

Select Model
Rating:47Neutral
Price Target:HKD 7.50▲(1.35% Upside)
Action:reiterated
Date:10/31/26

Weak financial performance from persistent losses and leverage risks is the dominant factor, partially offset by favorable technical indicators showing upward price momentum.

Positive Factors
Improved Gross MarginImproved gross margin shows the business has retained positive gross profitability in recent periods despite earlier weakness. If maintained, that spread can help absorb operating costs and provide a base for recovery, although it has not yet translated into overall profitability.
Negative Factors
Highly Volatile RevenueThe sharp revenue decline after a prior surge indicates an unstable top-line base and makes future earnings harder to forecast. Persistent volatility can reduce operating leverage, weaken planning confidence, and limit the company’s ability to fund investment from recurring business activity.

China Star Entertainment (0326) vs. iShares MSCI Hong Kong ETF (EWH)

-100%0%100%200%300%400%HK:0326+273.74%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 17.97B
Dividend Yield
―
Average Volume (3M)
3.06M
Price to Earnings (P/E)
-48.3
Beta (1Y)
-0.08
Revenue Growth
-69.21%
EPS Growth
-18.77%
Country
Hong Kong
Employees
149
Sector
Real Estate
Sector Strength
65
Industry
Real Estate - Development

China Star Entertainment Business Overview & Revenue Model

Company Description

Operating as an investment holding company, China Star Entertainment Limited primarily dedicates its efforts to the film and television industry. Its activities encompass the financing, creation, distribution, and licensing of films and TV drama seri...

How the Company Makes Money

Publicly available, up-to-date details on China Star Entertainment (0326)’s current revenue model and key revenue streams (e.g., the specific sources of revenue, the relative contribution of each segment, and any significant partnerships underpinning...

China Star Entertainment Financial Statement Overview

Summary

Explosive revenue growth in 2023-2024 offset by sharp projected 2025 decline, consistent net losses worsening to -110% margins, rising debt-to-equity to 1.23, and volatile cash flows signal significant financial challenges.

Income Statement

15Very Negative

Balance Sheet

20Very Negative

Cash Flow

25Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue243.71M404.92M728.22M206.17M3.88M3.72M
Gross Profit102.74M111.10M112.53M69.33M-3.40M-5.92M
EBITDA-335.12M-401.72M-186.69M-133.04M-83.97M-137.31M
Net Income-388.98M-443.76M-351.93M-289.48M-94.10M-156.50M
Balance Sheet
Total Assets4.45B4.43B4.21B5.18B5.25B5.29B
Cash, Cash Equivalents and Short-Term Investments147.12M220.98M164.34M248.83M251.89M278.30M
Total Debt2.00B1.98B1.63B1.80B1.70B1.58B
Total Liabilities3.01B2.91B2.15B2.52B2.30B2.22B
Stockholders Equity1.55B1.61B2.05B2.66B2.95B3.06B
Cash Flow
Free Cash Flow-107.05M-197.70M242.25M41.66M-94.01M-344.21M
Operating Cash Flow-105.35M-195.91M274.23M59.21M-93.83M-343.40M
Investing Cash Flow-2.25M-2.66M-24.12M37.65M24.57M-27.65M
Financing Cash Flow225.14M239.46M-351.27M-61.54M-3.44M3.96M

China Star Entertainment Technical Analysis

Technical Analysis SentimentPositive
Last Price7.40

Price Trends

50DMA6.68Positive
100DMA6.72Positive
200DMA6.25Positive

Market Momentum

MACD0.33Negative
RSI54.84Neutral
STOCH76.50Neutral

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 7.40 is above the 20-day moving average (MA) of 7.08, above the 50-day MA of 6.68, and above the 200-day MA of 6.25, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 54.84 is Neutral, neither overbought nor oversold. The STOCH value of 76.50 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

Overall Rating

UnderperformOutperform
Sector (65)

Financial Indicators

HK:0326 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:0136HK:013670OutperformHKD 20.60B12.735.83%―-40.47%15.56%
Sector *65Neutral$2.17B12.193.79%4.94%3.15%1.96%
HK:1132HK:113248NeutralHKD 156.78M-1.16-10.79%―-17.38%-360.00%
HK:0326HK:032647NeutralHKD 17.97B-48.33-24.66%―-69.21%-18.77%
HK:1003HK:100346NeutralHKD 1.07B-2.02-54.38%―――
HK:0391HK:039144NeutralHKD 1.47B-34.93-19.16%―-10.26%27.08%
HK:0419HK:041943NeutralHKD 667.72M-12.62-39.91%―-41.34%78.52%

* Real Estate Sector Average

Performance Comparison

0%100%200%300%HK:0326HK:0391HK:1132HK:1003HK:0136HK:0419Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:0326 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:0326China Star Entertainment 7.405.43275.63%
HK:0391Mei Ah Entertainment Group Limited0.250.15145.54%
HK:1132Orange Sky Golden Harvest Entertainment (Holdings) Limited0.06-0.01-18.84%
HK:1003Huanxi Media Group Ltd.0.24-0.07-21.61%
HK:0136China Ruyi Holdings Limited1.25-1.48-54.40%
HK:0419Huayi Tencent Entertainment Co., Ltd.0.38-0.10-20.83%

China Star Entertainment Corporate Events

China Star Entertainment Sets 2026 Deadline for Forfeiture of Unclaimed Dividends

Oct 20, 2026

China Star Entertainment has reminded shareholders and holders of bonus convertible bonds that several historical dividends, dating from 2009 to 2019, remain unclaimed and are subject to forfeiture under the company’s bye-laws. In line with its...

China Star Entertainment’s Controlling Shareholder Cuts Stake, New Investor Emerges

Sep 11, 2026

China Star Entertainment’s controlling shareholder vehicle, Heung Wah Keung Family Endowment Limited, has agreed to sell 340 million shares, or about 14 percent of the company’s issued capital, to investor Lam Sin Cheng. The transaction,...

China Star Entertainment Narrows Interim Losses but Revenue Slumps

Aug 28, 2026

China Star Entertainment reported interim unaudited results for the six months ended 30 June 2026, showing revenue of HK$95.3 million, down sharply from HK$256.5 million a year earlier, but with cost of sales reduced to HK$27.2 million, lifting gross...

China Star Entertainment Forecasts Sharply Narrowed Interim Loss

Aug 26, 2026

China Star Entertainment has alerted investors that it expects to narrow its interim loss for the six months ended 30 June 2026 to between HK$50 million and HK$62 million, down from a loss of HK$110.9 million a year earlier. The board attributes the...

China Star Entertainment Sets Board Meeting to Review Interim Results and Possible Dividend

Aug 18, 2026

China Star Entertainment has scheduled a board meeting for 28 August 2026 to review and approve the unaudited interim results for the six months ended 30 June 2026. The board will also consider the potential declaration of an interim dividend, a move...

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: Oct 31, 2026