Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 0.75 [8][9]. Core Insights - The company's FY25 revenue reached RMB 6.702 billion, a 33% increase year-on-year, exceeding expectations by 8% due to strong performance from the ticketing platform and IP derivatives. However, the net profit attributable to shareholders was RMB 364 million, a 27.7% increase but below the expected RMB 631 million due to an investment impairment of RMB 428 million [1][5]. - The ticketing platform, DaMai, showed significant growth with FY25 revenue of RMB 2.057 billion, a remarkable 236% increase, driven by the overall recovery of the performance market and the integration of the platform [2]. - The film-related segment saw a decline in revenue to RMB 2.712 billion, down 10%, primarily due to underperforming film projects and a weak overall film industry in 2024. The company has a substantial pipeline with 40 films and 20 series in reserve [3]. - The IP derivatives business reported revenue of RMB 1.433 billion, a 73% increase, attributed to a significant rise in retail sales of licensed IP products, with the IP matrix expanding to include several high-profile global IPs [4]. Summary by Sections Financial Performance - FY25 revenue was RMB 6.702 billion, up 33% year-on-year, with a net profit of RMB 364 million, reflecting a 27.7% increase. Adjusted EBITA was RMB 809 million, a 61% increase [1][5]. - Revenue projections for FY26-28 are set at RMB 7.236 billion, RMB 8.307 billion, and RMB 9.342 billion, respectively, with net profits expected to reach RMB 865 million, RMB 1.081 billion, and RMB 1.255 billion [7][19]. Business Segments - DaMai's ticketing revenue for FY25 was RMB 2.057 billion, with a segment performance increase of 339% [2]. - The film-related segment's revenue was RMB 2.712 billion, down 10%, with a significant drop in segment profit to RMB 73 million, down 91% [3]. - The IP derivatives segment generated RMB 1.433 billion in revenue, a 73% increase, with a segment profit of RMB 380 million, up 75% [4]. Valuation and Forecast - The company is valued at a PE ratio of 23X for FY26, with a target price of HKD 0.75, reflecting an increase from the previous target of HKD 0.65 [5][8].

Core Viewpoint - The company's FY2025 performance aligns with market expectations, showing significant growth in revenue and net profit, particularly in its ticketing and IP derivative businesses [1][2][3] Financial Performance - FY2025 revenue reached 6.702 billion yuan, a year-on-year increase of 33.1% - Net profit attributable to shareholders was 364 million yuan, up 27.7% - Non-IFRS EBITA stood at 809 million yuan, reflecting a 60.7% increase - Non-IFRS net profit was 524 million yuan, growing by 9.5% [1] Business Segments - The ticketing platform, 大麦, generated 2.057 billion yuan in revenue, with a substantial year-on-year increase, maintaining a leading position in the live entertainment sector [1] - The IP derivative business reported revenue of 1.433 billion yuan, a 73% increase, with 阿里鱼's revenue growing over 90% [1] - The film business saw a revenue decline to 2.712 billion yuan due to decreased box office performance and viewer numbers [2] - The drama production segment experienced a 16% revenue decline, totaling 500 million yuan [2] Strategic Directions - The company has outlined four strategic directions: content leadership, user growth, enhancing commercial derivative capabilities, and active overseas expansion [3] - The focus on the ticketing business's cash flow stability and the growth potential of 阿里鱼's IP derivative business is emphasized [3] Profit Forecast and Valuation - The FY2026 Non-IFRS net profit forecast has been raised by 13.6% to 1.189 billion yuan, with a new FY2027 forecast of 1.344 billion yuan introduced [3] - The target price has been increased by 32.1% to 0.70 HKD, reflecting an upside potential of 14.8% from the current price [3]