DAMAI ENT Shares Surge Over 8% in Afternoon Trading on Strong Annual Profit Growth and Upcoming Film Release

Stock News06-02 14:06

Shares of DAMAI ENT (01060) climbed more than 8% during the afternoon session. At the time of writing, the stock was up 6.67% to HK$0.64, with a turnover of HK$166 million.

The company recently released its annual results for the period ending March 31, 2026. Revenue reached approximately RMB 8.024 billion, representing a 20% year-on-year increase. Net profit attributable to owners of the company was about RMB 705 million, surging 94% compared to the previous year.

During the reporting period, China's live entertainment market continued its robust development, with box office revenue for performances showing steady growth for three consecutive years. Capitalizing on this industry opportunity, DAMAI's platform achieved continuous growth in Gross Merchandise Value (GMV) for performance ticket sales over the same three-year period, maintaining its leading industry position. The number of events for which the group provided ticketing services exceeded 400,000, marking a double-digit year-on-year increase that outpaced the overall industry growth rate.

Analyst Outlook and Future Prospects

Analysts noted that management anticipates growth in both revenue and profit for DAMAI ENT's mainland China operations in the 2027 fiscal year, with international expansion expected to continue. Regarding the film business, expectations are that the movie "Letter to Grandma" will begin contributing to profits in the first half of the 2027 fiscal year, while the group continues to control costs and optimize staffing. It is believed that DAMAI ENT's profit recovery has been significant following its strategic reforms, and the film "Letter to Grandma" is likely to provide an incremental profit contribution in FY2027.

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