Summary of Damai Entertainment Holdings Ltd Conference Call Company Overview - **Company**: Damai Entertainment Holdings Ltd - **Ticker**: 1060.HK - **Industry**: Greater China Media - **Market Cap**: US$3.974 billion - **Current Stock Price**: HK$1.04 - **Price Target**: HK$1.20, implying a 15% upside from the current price [6][11] Key Financial Highlights - **Total Revenue for 1HF26**: Rmb4.0 billion, up 33% year-over-year (YoY) and 11% half-over-half (HoH), exceeding Morgan Stanley estimates (MSe) by 4% and consensus by 6% [3][8] - **GAAP Net Profit**: Rmb520 million, a 54% YoY increase, surpassing the alert for a profit greater than Rmb500 million [4][8] - **Segment Performance**: - **IP Merchandising**: Rmb1.2 billion, up 105% YoY and 34% HoH, exceeding MSe by 2% and consensus by 6% [8] - **Live Content and Technology**: Rmb1.3 billion, up 15% YoY and 51% HoH, above MSe by 1% and consensus by 10% [8] - **Film Content and Technology**: Rmb1.1 billion, down 15% YoY and 27% HoH, below MSe by 2% and consensus by 10% [8] - **Drama Series Production**: Rmb0.48 billion, up 693% YoY but below MSe and consensus by 49% and 50% respectively [8] Operational Insights - **Cost of Sales and Services**: Increased to Rmb2.604 billion, a 50% YoY rise [10] - **Operating Profit Margin**: 12.7%, reflecting a 1.7 percentage point decrease from the previous period [10] - **Non-Operating Items**: Significant increase in profit before tax to Rmb632 million, a 45% YoY rise [10] Future Outlook - **Earnings Call Scheduled**: November 14, 2025, at 10:30 AM HKT [4] - **EPS Estimates**: Projected to grow from Rmb0.02 in FY25 to Rmb0.06 in FY28 [6] - **Valuation Methodology**: Sum-of-the-parts (SOTP) valuation suggests a 32x F2026e P/E and 1.0x PEG [11] Risks and Opportunities - **Upside Risks**: - Faster-than-expected revenue growth in the IP business and ticketing sector [13] - Expansion through cooperation with top IPs [13] - **Downside Risks**: - Slower-than-expected revenue growth in the IP business and potential loss of cooperation with key IPs [13] Additional Notes - **Average Daily Trading Value**: US$26 million [6] - **52-Week Price Range**: HK$0.40 - HK$1.37 [6] - **Analyst Rating**: Overweight, indicating expected performance above the industry average [6][62] This summary encapsulates the key points from the conference call, highlighting the financial performance, operational insights, future outlook, and associated risks for Damai Entertainment Holdings Ltd.