Core Viewpoint - The company maintains a "buy" rating for Damai Entertainment (01060) due to high growth in its IP business and steady expansion in its performance business, indicating strong long-term value in the live entertainment sector [1] Performance Summary - For FY26H1 (ending September 30, 2025), the company reported revenue of 4.05 billion, a year-on-year increase of 33%; net profit attributable to shareholders was 520 million, up 54% [2] - Adjusted EBITDA was 550 million, reflecting a 14% year-on-year growth after excluding a 160 million financial asset impairment reversal from FY25H1 [2] IP Business Performance - Revenue from IP derivative business doubled year-on-year, with ToB licensing business showing significant growth and ToC rapidly starting [3] - FY26H1 revenue for IP business reached 1.16 billion, a 105% increase, with segment performance (gross profit minus allocated sales expenses) at 230 million, up 44% [3] - Profit margin decline was influenced by a one-time impact from the closure of Jinli Naku, while core Alibaba Fish business revenue growth exceeded 100% with profits nearly doubling [3] - The company is expanding its team and partnerships in the ToB licensing sector, with notable IPs like Sanrio, Gigi Kawa, and Pokémon [3] - Retail brand operations are being developed with multiple brand flagship stores opened, and plans for more experiential formats like restaurants and indoor parks [3] Performance Business Overview - Core domestic concert categories are steadily increasing, with expansion into international markets and upstream investments [3] - FY26H1 revenue from performances was 1.34 billion, a 14.5% increase, with segment performance at 750 million, up 4.7% [3] - The decline in profit margin may be due to early internationalization efforts and lower margins in performance content investments [3] - Ticketing for core concert categories faced supply constraints, but overall demand remains strong, with a 17% increase in ticket buyers [3] - The company provided services for over 2,500 performances in FY26H1, a 19% year-on-year increase [3] - Revenue from live entertainment content grew by 50%, with participation in major concerts and events [3] - The company is actively pursuing international opportunities, with plans to invite top global artists to perform in Asia [3] Film and Television Content Business - The film segment reported revenue of 1.06 billion in FY26H1, with segment performance at 95 million; the company is adjusting its investment strategy to focus on lower-risk, high-quality films [4] - Revenue from series production was 480 million, with a profit of 40 million [4] Management Efficiency - Management efficiency has improved, with a notable reduction in investment risks from the previous year [5] - Management expense ratio decreased to 16.5% in FY26H1, down 3.1 percentage points year-on-year [5]

Core Viewpoint - The company is optimistic about the strong performance of its IP licensing business, highlighted by the successful collaboration between Alibaba Fish and Sanrio, with steady progress in online and offline activities [1] Group 1: Financial Performance - Sanrio's Q1 FY2026 (April to June 2025) report shows that the China region achieved revenue of 376 million RMB, a year-on-year increase of 120%, with licensing revenue reaching 251 million RMB, up 158% [1] Group 2: Future Projections - The company expects net profit attributable to shareholders for FY2026-2028 to be 964 million, 1.178 billion, and 1.409 billion RMB, representing year-on-year growth of 165.21%, 22.12%, and 19.62% respectively [1] - The closing price on August 11, 2025, corresponds to a PE ratio of 32.98, 27.00, and 22.58 for the respective years [1] Group 3: Strategic Partnerships - The strong performance of Sanrio in China and its emphasis on the significant contribution of China to its growth indicate a solid and positive partnership, which is expected to be based on long-term operations and steady development [1] - Marketing activities planned by Alibaba Fish for Sanrio are anticipated to provide experience for the development and operation of other collaborative IPs in China, potentially leading to more new IP signings [1]

Core Insights - The stock of Damai Entertainment (01060) has increased by over 6%, currently up 7.08% at HKD 1.21, with a trading volume of HKD 232 million [1] Group 1: Financial Performance - Sanrio reported a revenue of RMB 376 million for Q1 of FY2026 in China, representing a year-on-year growth of 120% [1] - The licensing business revenue for Sanrio in China reached RMB 251 million, showing a year-on-year increase of 158% [1] Group 2: Strategic Partnerships - CITIC Securities noted that the collaboration between Alibaba's YU and Sanrio has positively impacted the performance of both parties [1] - The partnership is expected to lead to explosive growth in licensing revenue for both Sanrio and Damai Entertainment in FY2025, with projections indicating that over 50% of YU's revenue will come from Sanrio [1] Group 3: Marketing and Events - The collaboration has seen steady progress in online and offline activities, with successful events like "Hi Fan Festival" and "Super Product Day" being held for the second time [1] - Sanrio's strong performance in China, highlighted in their financial report, indicates a solid and positive partnership, with future collaborations focusing on long-term operations and steady development [1] Group 4: Future Prospects - Marketing activities planned by YU for Sanrio are expected to provide valuable experience for the development and operation of other collaborative IPs such as Chiikawa, Crayon Shin-chan, and Universal Studios in China [1] - This experience is anticipated to serve as a strong foundation for the growth of the company's licensing business and may lead to signing more new IPs in the future [1]