Summary of Damai Entertainment Holdings Ltd Conference Call Company Overview - **Company**: Damai Entertainment Holdings Ltd - **Ticker**: 1060.HK - **Market Cap**: US$3,471 million - **Current Share Price**: HK$0.91 - **Price Target**: HK$1.20, implying a 32% upside from the current price [6][9] Key Highlights Business Segments - **Offline Entertainment Business**: Focus on ticketing and live events, with no significant change in market share. Management is confident in maintaining a dominant position without expecting a higher take-rate in ticketing [9][10]. - **IP Business**: Management emphasizes the platform nature of the business, not relying on any single IP, and operates over 300 IP metrics. There is potential for expanding IP product genres [9][10]. - **Film Business**: Plans to scale back investments in the film sector, indicating a strategic shift towards more profitable areas [9][10]. Financial Performance - **Revenue Growth**: Expected revenue growth driven by the content business rather than concert ticketing. The content segment reached breakeven in 2024 and is anticipated to maintain fast revenue growth with improving margins [9][10]. - **EBITDA Targets**: Management targets EBITDA breakeven in fiscal year 2026, supported by cost optimization efforts [9][10]. - **Projected Financials**: - **Revenue (Rmb million)**: - FY2025: 6,702 - FY2026e: 7,814 - FY2027e: 9,054 - FY2028e: 10,323 - **EBITDA (Rmb million)**: - FY2025: 558 - FY2026e: 978 - FY2027e: 1,397 - FY2028e: 1,767 [6][9]. Market Dynamics - **Overseas Expansion**: Launched the overseas ticketing platform MAISEAT in November 2025, with expectations of generating revenue in 2027 after hosting concerts for top celebrities [9][10]. - **Impact of Japan-China Tension**: Limited impact on sales momentum, although some project pipelines were delayed. Marketing activities have been reduced [9][10]. Risks - **Upside Risks**: Faster-than-expected revenue growth in the IP and ticketing businesses, and successful cooperation with top IPs [12]. - **Downside Risks**: Slower-than-expected revenue growth and potential loss of cooperation with key IPs [12]. Valuation Methodology - **SOTP Valuation**: - Ticketing Business: 15x FY2027e EV/EBITDA - IP Business: 30x FY2027e EV/EBITDA - **Implied Valuation**: 25x FY2027e P/E and 0.8x PEG [10]. Conclusion Damai Entertainment Holdings Ltd is positioned for growth through its content business and overseas expansion, while strategically scaling back its film operations. The company aims for EBITDA breakeven in 2026, with a focus on optimizing costs and expanding its IP offerings. The current market dynamics and management's confidence in maintaining market share present a cautiously optimistic outlook for investors.

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年12月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 大麥娛樂控股有限公司 呈交日期: 2026年1月5日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01060 | 說明 | - | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 38,000,000,000 | HKD | | 0.25 HKD | | 9,500,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | | 38,000,000,000 | HKD | | 0.25 HKD | | 9,500,000,000 | 本月底法定/註冊股本總額： HKD ...

Group 1 - The core viewpoint of the article highlights the significant increase in the stock price of Damai Entertainment (01060), which rose over 5% and is currently trading at 0.94 HKD with a transaction volume of 1.41 billion HKD [1] - As of December 28, 2025, the total box office revenue for the New Year film season has surpassed 5 billion RMB, marking the highest figure for the same period in nearly eight years [1] - The total box office revenue for domestic films has exceeded 50 billion RMB, with total audience attendance reaching 1.194 billion [1] Group 2 - According to a report from Zhongyou Securities, there are currently 8 films planned for release during the 2026 Spring Festival, indicating a diverse range of genres and themes [1] - The report anticipates that the box office will continue to reflect the trend of "high-quality content attracting box office revenue," with a focus on the performance of high-quality and well-reviewed works [1] - The positive impact of "Zootopia 2" is noted, along with the upcoming Spring Festival, leading to recommendations for ticketing service companies such as Maoyan Entertainment and Damai Entertainment [1]

Group 1 - The stock of Damai Entertainment (01060) has increased by over 5%, currently trading at 0.94 HKD with a transaction volume of 1.41 billion HKD [1] - As of December 28, 2025, the total box office for the New Year film season has surpassed 5 billion RMB, marking the highest figure for this period in nearly 8 years [1] - The total box office for domestic films has exceeded 50 billion RMB, with total audience attendance reaching 1.194 billion [1] Group 2 - According to a report from Zhongyou Securities, there are currently 8 films planned for release during the 2026 Spring Festival [1] - The distribution of film genres during this period is expected to be diverse, with a continued trend of "high-quality content attracting box office" [1] - Companies such as Maoyan Entertainment and Damai Entertainment are recommended for attention due to the positive impact of "Zootopia 2" and the upcoming Spring Festival [1]

（文章来源：每日经济新闻） 每经AI快讯，港股电影概念股多数上涨，截至发稿，大麦娱乐(01060.HK)涨4.44%，报0.94港元；中国 星集团(00326.HK)涨4.42%，报2.6港元；猫眼娱乐(01896.HK)涨1.93%，报6.86港元。 ...

Group 1 - The core viewpoint of the article highlights the positive performance of movie concept stocks, with notable increases in share prices for companies such as Damai Entertainment, China Star Group, and Maoyan Entertainment [1] - As of December 28, the total box office for the 2025 New Year’s film season has surpassed 5 billion yuan, indicating strong market performance [1] - The animated film "Zootopia 2" is expected to exceed 4 billion yuan in box office revenue, setting multiple historical records for imported films in the Chinese market [1] Group 2 - The film market is exhibiting a "winner takes all" phenomenon, particularly evident in the 2025 season, which is characterized by a pronounced Matthew effect [1] - Over 70 films, both domestic and foreign, are scheduled for release during the 2026 New Year’s film season, showcasing a diverse range of genres including history, suspense, documentary, fantasy, and public welfare [1] - According to China Merchants Securities, the strong box office performance during the New Year’s season, along with the upcoming release of numerous quality films for the Spring Festival, makes the film and cinema sector promising [1]

Core Insights - The Chinese film and television industry in 2025 is heavily focused on Intellectual Property (IP), with significant developments in IP licensing and derivative products driven by successful releases like "Nezha: Birth of the Demon Child" [1][3] - The industry faces challenges in maintaining stable revenue streams, as many companies struggle with consistent growth in income and profits, relying heavily on blockbuster productions [3][4] - The rise of IP is attributed to the dual factors of market growth and structural issues, alongside the increasing popularity of animation and derivative products, which are more suited for IP development [1][4] Group 1: Industry Trends - The 2025 Spring Festival box office hit "Nezha 2" generated a revenue of 15.446 billion yuan, with significant income from IP licensing and derivatives, indicating a shift towards IP as a revenue source [3] - Companies like iQIYI and Light Media are transitioning from content providers to IP creators and operators, with iQIYI planning to open multiple offline theme parks to enhance audience engagement [3][7] - The market is seeing a diversification of revenue streams, with iQIYI's IP derivative business growing by 105.3% year-on-year, highlighting the potential for IP to offset declines in traditional film content [3][8] Group 2: Strategic Developments - Light Media is collaborating with Seven Dimensions Technology to develop AI toys, while Wanda Film is investing in cultural development companies to expand its IP derivative business [8] - The industry is exploring new avenues for IP utilization, including collaborations in the toy, cultural tourism, and gaming sectors, aiming to create a more integrated and expansive IP ecosystem [9] - Analysts note that while domestic companies lag behind in IP licensing maturity compared to North America, they benefit from a large consumer base and supportive policies, providing a fertile ground for IP development [9]

Group 1 - The Hong Kong stock market saw a collective rise in the film and entertainment sector, with Emperor Culture Industry increasing nearly 9% [1] - Qinghua Holdings rose over 6%, while Gaoya Optical and Digital Kingdom increased by more than 5% and 4% respectively [1] - Other companies such as DaMai Entertainment, Shaw Brothers Holdings, China Star Group, Maoyan Entertainment, Huayi Brothers, and NetEase Cloud Music all experienced gains of over 1% [1]

Group 1 - Zijin Mining (02899) rose nearly 3% after announcing the completion of the main construction and core equipment installation for the second phase of the Xizang Julong Copper Mine, marking a key step before production [1] - Asia Pacific Satellite (01045) increased over 5.4%, with a cumulative rise of nearly 30% over the past five trading days, as it operates multiple satellites under China Satcom [1] - Zhaoyan New Drug (06127) fell over 6% following an announcement that its actual controller plans to reduce holdings by up to 14.98 million shares, representing 20.0466% of his holdings and 1.99873% of the company's total share capital [1] - Zhongwei New Materials (02579) surged nearly 7% after signing a strategic cooperation framework agreement with Xinwanda for solid-state batteries [1] Group 2 - Dongyue Group (00189) rose nearly 5% as the long-term contract prices for refrigerants were confirmed, with R32 priced at 61,200 yuan/ton (+1,000 yuan) and R410A at 55,100 yuan/ton (+1,900 yuan) [2] - MicroPort Scientific Corporation (02252) increased over 1.2%, reporting that its core products' cumulative order volume exceeded 230 units [2] - Oil stocks saw gains, with CNOOC (00883) up 4.17%, PetroChina (00857) up 2.91%, and Sinopec (00386) up 1.31%, driven by a rise in international crude oil prices due to geopolitical tensions [2] - Baidu Group (09888) rose nearly 7% after announcing a partnership with Uber and Lyft to launch a robotaxi pilot project in the UK by 2026 [2] Group 3 - NIO (09866) rose over 2.4% after announcing that it successfully delivered over 40,000 units of its new ES8 model within 100 days of the official delivery start [3] - Damai Entertainment (01060) increased nearly 5%, with the total box office for the 2025 New Year’s season reaching 5.245 billion yuan as of December 28 [3] Group 4 - Copper mining stocks collectively declined, with Hudbay Minerals (HBM.US) down 4.01%, Taseko Mines (TGB.US) down 3.1%, and Ero Copper (ERO.US) down 1.64%, as international copper futures fell over 4% [5] - Some cryptocurrency-related stocks fell, with IREN Ltd (IREN.US) down 2.21% and Circle (CRCL.US) down 0.94% [5] - NIO (NIO.US) rose 4.71% in the US market, echoing its performance in Hong Kong [6] - The Nasdaq Golden Dragon Index fell nearly 1%, with major Chinese concept stocks declining, including Alibaba (BABA.US) down 2.46% and Xpeng Motors (XPEV.US) down 1.35% [6]

Group 1 - The stock price of Emperor Culture Industry (00491.HK) increased by 8.82% [1] - The stock price of DaMai Entertainment (01060.HK) rose by 4.65% [1] - The stock price of Huanxi Media (01003.HK) saw an increase of 1.59% [1]