Movement Alert|Damai Entertainment Falls 5.66% in Regular Trading, Zhongtai Securities Slashes Earnings Forecasts by Over 40%

Market Focus06-18

On June 18, Damai Entertainment fell 5.66% in regular trading, trading at HK$0.51/share, with turnover of HK$104 million.

The decline was triggered by Zhongtai Securities issuing a research report that significantly cut earnings forecasts. While maintaining an Overweight rating, the brokerage slashed FY27-28 net profit estimates from 15.14/19.65 billion yuan to 8.76/10.23 billion yuan, representing a reduction exceeding 40%. The downgrade in profit expectations was attributed to overseas business and IP retail and self-operated segments still being in early-stage investment periods, pressuring near-term profitability.

Although the company reported strong FY26 results — total revenue of 8.024 billion yuan (+20% YoY) and net profit of 705 million yuan (+94% YoY) — the market appears more focused on forward earnings delivery. Revenue growth was led by the IP derivatives segment, which surged 60% to 2.17 billion yuan, while the live entertainment and technology segment grew 11% to 2.276 billion yuan.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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