Summary of Damai Entertainment Holdings (1060.HK) Conference Call Company Overview - Company: Damai Entertainment Holdings (1060.HK) - Market Cap: HK$34.7 billion / $4.4 billion - Enterprise Value: HK$31.4 billion / $4.0 billion - Current Price: HK$1.17 - 12-Month Price Target: HK$1.38, implying an upside of 17.9% [1][5][16] Core Business Segments - Live Entertainment: Damai is the largest live show ticketing platform in China, holding an 80% market share in event ticketing. The live concert segment has seen a 6X increase in total addressable market (TAM) over the past five years, driven by younger demographics' demand for experiential consumption [2][22]. - IP Licensing: AliFish, the licensing agent under Damai, is the largest IP agent in China, with a strong portfolio including brands like Sanrio. The IP merchandising market in China is significantly under-penetrated compared to Japan and the US, indicating substantial growth potential [3][22]. Financial Performance and Projections - Revenue Growth: Expected revenue growth of 18% and net profit growth of 58% over the next two years, primarily driven by the growth of Damai and AliFish [4][28]. - Financial Metrics: - Revenue (FY25): Rmb 6,702.3 million - EBITDA (FY25): Rmb 756.2 million - EPS (FY25): Rmb 0.02 - Projected EBITDA growth of 108% in FY26 [4][14]. - Valuation: The company is valued at a forward P/E of 23X for FY27E, with a target price implying a P/E of 27X [16][28]. Growth Drivers - Live Events: Anticipated mid-teen CAGR in the live shows industry, with Damai expected to outpace this growth through expansion into non-concert events and overseas markets [25][41]. - IP Business: AliFish projected to achieve over 35% sales and EBITDA CAGR, driven by an expanding IP portfolio and better monetization strategies [26][28]. - Margin Expansion: Overall EBITA margin expected to increase from 12% in FY25 to 18% in FY28 due to a favorable revenue mix and reduced losses from the movie segment [27][28]. Competitive Advantages - Market Position: Damai's established network effect and strong relationships with top celebrities and agencies provide a competitive moat in the live entertainment sector [23][60]. - Membership Program: The TaoMai VIP program has over 20 million users, enhancing customer loyalty and engagement [61]. Risks and Challenges - Supply Constraints: Potential limitations in the supply of quality venues for live events could impact growth [31]. - IP Contract Adjustments: Risks associated with the renewal of IP licensing contracts, which typically last five years [31]. - Volatility in Movie Business: The company's movie segment has historically been volatile, posing risks for future earnings [31]. Conclusion Damai Entertainment Holdings is well-positioned in the rapidly growing live entertainment and IP licensing markets in China. With strong projected growth rates and a solid market share, the company presents a compelling investment opportunity despite certain risks associated with supply constraints and market volatility.
大麦娱乐 - 提供优质现实娱乐体验；首次给予买入评级-Damai Entertainment Holdings (1060.HK)_ Offering superior real-life entertainment experiences; Initiate at Buy