Zhongtai Securities has released a research report on DAMAI ENT (01060), providing an "Add" rating. The report's analysis is based on the company's latest annual results and future projections.
According to the report, considering the company's overseas operations and IP retail and self-operated businesses are still in the early investment phase, total revenue for FY27-29 is forecasted to reach 8.917 billion yuan, 10.255 billion yuan, and 12.095 billion yuan respectively, representing year-on-year growth of +11%, +15%, and +18%. Net profit attributable to shareholders is projected to be 876 million yuan, 1.023 billion yuan, and 1.209 billion yuan for the same periods, showing growth of +24%, +17%, and +18%. The company is recognized as a leader in the performance and IP sub-licensing sector, supporting the "Add" rating.
Key Financial Performance for FY26
The company reported its FY26 results. For the fiscal year, total revenue reached 8.024 billion yuan, a 20% year-on-year increase. Net profit attributable to shareholders was 705 million yuan, surging 94% year-on-year. Adjusted operating profit stood at 738 million yuan, up 14% year-on-year. Adjusted EBITA was 746 million yuan, down 8% year-on-year; however, excluding a 160 million yuan bad debt recovery from the prior year, this metric would have shown a 15% year-on-year increase.
Breakdown of Revenue Streams
The IP derivatives business showed impressive growth, while the performance content and technology segment remained stable.
Performance Content & Technology: Revenue increased by 11% year-on-year to 2.276 billion yuan. In 2025, the performance box office scale grew 6.39%, exceeding 60 billion yuan, with the number of performances rising 6.58% to over 600,000. The number of attendees increased 4.22% to 194 million. The DAMAI platform's GMV has grown for three consecutive years, maintaining industry leadership. The number of performances for which it provided ticketing services grew by double digits to 400,000, with large-scale performance events increasing 50% to 5,800. The company hosted multiple large-scale concerts and music festivals and participated in the production and operation of content such as talk shows and immersive experiences. It officially launched its overseas primary ticketing platform "Maiseat" (covering Singapore, Malaysia, Thailand, South Korea, etc.), promoting global tours for Chinese artists. The company is gradually extending upstream into artist discovery, song production, and artist management and operations.
IP Derivatives: Revenue surged 60% year-on-year to 2.170 billion yuan. For sub-licensing, the company has secured partnerships with top IPs including Sanrio Family, Chiikawa, Pokémon, Universal Studios, and Crayon Shin-chan, collaborating with brands such as Beast, L'Oréal Paris, Chow Tai Fook, Miniso, Pop Mart, Kayou, and Yadea. In retail, it has launched Chiikawa pop-up events in six cities including Shanghai, Chengdu, Guangzhou, and Sanya. In September 2025, the first official Chiikawa offline flagship store in mainland China opened in Shanghai, followed by a second flagship store in Hangzhou in April 2026.
Film Content & Technology: Revenue decreased by 20% year-on-year to 2.178 billion yuan. The Tao Piao Piao platform maintained a stable market share, while Yun Zhi remained the leader in the number of cinemas issuing tickets and ticket sales volume nationwide. The films "Catching Shadows" and "Silent Awakening," which the company produced and led in marketing, secured the third place in the summer box office and second place in the Spring Festival box office respectively, with investment returns exceeding expectations.
Profitability and Segment Performance
Under the investment in new businesses, profit margins have faced some pressure. The segment performance for Performance Content & Technology decreased by 4% year-on-year to 1.186 billion yuan, mainly affected by investments in overseas operations. The segment performance for IP Derivatives increased by 11% year-on-year to 400 million yuan. This growth rate was lower than the revenue growth rate, primarily due to one-time losses from the closure of some non-core subsidiary business lines, which dampened the overall segment performance increase.
Future Outlook: Dual Drivers of Overseas Expansion and IP Business
Looking ahead, overseas expansion and the IP business are expected to be the dual growth drivers.
For the performance business domestically, the company aims to accelerate its extension upstream into the content end of the industry chain, create an innovative model linking variety shows and performances, incubate its own project IPs, further expand offline entertainment commercialization scenarios, and diversify revenue sources. Overseas, starting from Hong Kong and Macau, it plans to expand its business across Asia and globally, establishing an overseas ticketing platform, sourcing overseas premium content, and deploying systems for top overseas venues.
For the IP business, the company will continue to deepen its IP ecosystem, develop IP brand retail operations, deepen cooperation with Tmall's trendy toys category, and actively explore the development of its own IPs as well as self-operated IP business.
Risk Factors to Consider
Potential risks include the sustainability of IP lifecycles, global macroeconomic fluctuations, policy and compliance risks, as well as risks related to calculation deviations and untimely updates of research report information.
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