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China Star Entertainment Limited (0326) Fair Value & Analysis

Communication Services · HK · Market cap HK$16.0B

CS China Star Entertainment Limited 0326 · HK
PriceHK$7.75
Fair ValueHK$3.45
Upside-55.5%
Quality40/100
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Expensive Growth
Loss-making · -109.6% net margin
Low debt · negative free cash flow
Trails peers (1/9)
Narrow moat 14/100
Evidence: Low Range HK$2.27 – HK$4.39 Share as image

Fair value as of: Aug 2, 2026

From 1 valuation models · updated 8 days ago

Share price +21.5% over the past month.

Below-average quality, and screening another 55% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (HK$4.39). The favourable scenario is already priced in.
  • Weak quality (40/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • A fairly wide model range (HK$2.27 to HK$4.39) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

HK$9.73 HK$0.4000 Fair Value HK$3.45 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 2, 2026.

How to read this chart

60‑month range HK$0.4000 – HK$9.73 · fair‑value band HK$2.27 – HK$4.39 · the HK$7.75 price screens above the HK$3.45 fair value. Dashed = 300-day average. As of Aug 2, 2026.

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Analysis

China Star Entertainment Limited (0326) currently trades at HK$7.75, while our model-based Fair Value estimate is HK$3.45, implying the stock looks roughly 55.5% overvalued today. The Quality Score stands at 40/100 (below-average quality), in the Communication Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: low).

Trailing-twelve-month revenue stands at HK$405M. Revenue declined 72.3% year over year. It earns a return on equity of -29.9%. Net debt stands at HK$1.8B. Fundamentals as of Aug 2, 2026

Our scenario range runs from HK$2.27 (bear case) to HK$4.39 (bull case); at HK$7.75, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 22% below its 52-week high and 370% above its 52-week low, currently above its 200-day average. For context, the median of 10 Communication Services peers we cover trades at -52% fair-value upside, at -55%, 0326 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
NCAV (Graham) HK$0.3300 HK$0.4400 HK$0.6600 50
All 1 models by family
Asset-Based
NCAV (Graham) HK$0.3300 HK$0.4400 HK$0.6600 50

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Key figures & financial health

Revenue (TTM) HK$405M
Revenue growth (YoY) -72.3%
Net margin -110%
Return on equity -29.9%
Free cash flow −HK$198M FY2025
Operating margin -235%
More key figures
EPS (TTM) HK$-0.0500
Net debt HK$1.8B FY2025

Figures from reported company fundamentals · as of Aug 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 40/100

Of which business quality 37 · Market factors (momentum, volatility) 71

Profitability 1
Margins and returns on capital today
Quality Growth 29
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 50
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 75
Price trend over the last 3–12 months (market factor)
52W Momentum 87
Distance to the 52-week high (market factor)
Net Issuance 86
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

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 internationally.

Full 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 internationally. The company operates through three segments; Film Related Business Operations; Property Development and Investment Operations; and Multi-Media and Entertainment Business Operations. It 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 develops, promotes, and operates livestreaming e-commerce in multi-channel network e-commerce platform. Further, the company offers nominee, film production, management, building management, catering, and property agency services, as well as holds cable rights. Additionally, it engages in the art piece investment and rental; video rights distribution; song rights, trademarks, and copyrights holding and licensing; property and construction project management; multi-channel network and media business and development and sales of private label products and corporate planning, props and equipment rental, and dramatic creation activities. China Star Entertainment Limited was incorporated in 1992 and is headquartered in Central, Hong Kong. China Star Entertainment Limited operates as a subsidiary of Heung Wah Keung Family Endowment Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Star Entertainment Limited reported revenue of HK$405M in FY2025 versus HK$3.7M in FY2021, a compound +223.1%/yr. Reported net income was −HK$444M in FY2025.

Growth Quality 38/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
HK$405M
Latest YoY
−44.4%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+370.9%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+156.5%
Avg. growth/yr (25Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.6%
Revenue +223.1%/yr
FY21 HK$3.7M
FY22 HK$3.9M
FY23 HK$206M
FY24 HK$728M
FY25 HK$405M
Net income
FY21 −HK$156M
FY22 −HK$94.1M
FY23 −HK$289M
FY24 −HK$352M
FY25 −HK$444M

0326 screens 55% overvalued. Compare with Netflix, Inc →

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Cite: Fair Value Calculator (2026). "China Star Entertainment Limited Fair Value". https://www.fairvalue-calculator.com/stock/0326

Peer Group

Entertainment · 265 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 37 · Bottom 25%
Fair Value upside −56% · Below median
Return on assets -6% · Bottom 25%
Net margin (TTM) -110% · Bottom 25%
Revenue growth -72% · Bottom 25%
Debt / equity 0.01× · Lower than median

Valuation Multiples vs Entertainment median · lower = cheaper

P/B 1.27× · Pricier than median
P/S (TTM) 5.04× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 6
FUTURE 0 · sector 10
PAST 0 · sector 0
HEALTH 99 · sector 97
DIVIDEND 0 · sector 44

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Entertainment stocks, each showing price versus our Fair Value estimate (as of Aug 2, 2026).

Stock Price Fair Value vs Fair Value
Netflix, Inc ZNFL C$6.77 C$2.96 -56%
The Walt Disney Company DIS $96.30 $89.55 -7%
Warner Bros. Discovery, Inc WBD $26.87 $9.13 -66%
Live Nation Entertainment, Inc LYV $178.44 $46.89 -74%
Universal Music Group UMG €18.91 €14.78 -22%
TKO Group TKO $184.40 $22.16 -88%
Empresas Cablevisión, S.A. CABLECPO 55.00 MXN 60.49 MXN +10%
Beijing Enlight Media Co 300251 ¥11.77 ¥10.97 -7%
PT MNC Digital Entertainment Tbk, MSIN 456.00 IDR 221.09 IDR -52%
Prime Focus Limited PFOCUS ₹298.25 ₹63.45 -79%

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Frequently asked questions

Is China Star Entertainment Limited (0326) overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of HK$3.45 versus a price of HK$7.75, about −55% (overvalued).
What is the fair value of 0326?
Our model-based fair value for China Star Entertainment Limited is HK$3.45 (as of Aug 2, 2026), built from audited fundamentals. The current price is HK$7.75.
What is the quality score of 0326?
China Star Entertainment Limited has a Quality Score of 40/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of China Star Entertainment Limited (0326)?
China Star Entertainment Limited reported trailing-twelve-month revenue of about HK$405M (latest available figure, as of Aug 2, 2026).
What is the net profit margin of 0326?
The net profit margin of China Star Entertainment Limited is about -109.6%, meaning it is currently running at a net loss. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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