DAMAI ENT Surges Over 5% as May Day Box Office Expected to Rise YoY; Brokerage Sees Stable Profit Margins

Stock News
May 07

DAMAI ENT (01060) rose more than 5%, gaining 5.36% to HK$0.59 by the time of writing, with a turnover of HK$87.4593 million. On the news front, a research report from China Securities pointed out that with the approaching May Day holiday and summer season in 2026, the film market is expected to gradually recover. The supply of films during the May Day period has increased significantly year-on-year, with a total of 14 movies released, substantially higher than last year's 9 and the average of previous years, second only to the 18 films in 2023. In terms of major releases, leading companies such as Maoyan, DAMAI ENT, Enlight Media, and RuYi have produced and distributed films, in addition to one Hollywood import. The institution believes that compared to the weak film lineup and low box office base during the 2025 May Day period, this year's May Day box office is expected to achieve year-on-year growth. Goldman Sachs released a report stating that DAMAI ENT will announce its results in late May, with market focus centered on the momentum of its ticketing business, the potential for IP commercialization, and profit pressure from new investments. The firm expects the company's core business (IP and ticketing revenue) and profits to record a steady 25% growth each in fiscal years 2026 and 2027, while losses in the film business will narrow and profit margins remain stable. The brokerage believes the company's leading position in the live entertainment sector is solid, with its concert and IP commercialization businesses demonstrating resilience and being less affected by the impact of AI on online entertainment.

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