Summary of Damai Entertainment Holdings (1060.HK) Conference Call Company and Industry - Company: Damai Entertainment Holdings (1060.HK) - Industry: Licensing and Entertainment, specifically focusing on IP (Intellectual Property) merchandising and ticketing Key Points and Arguments 1. Positive Read-through from Sanrio: Sanrio's strong performance in the China licensing business has positive implications for Damai, with a reported 96% year-over-year growth in royalties revenue from April 2024 to March 2025, driven by enhanced cooperation with Alifish and an increase in licensees [1][11] 2. Growth Projections for Damai: For FY2026E, a 50% year-over-year growth in sub-licensing revenue is assumed, with some investors projecting up to 70% growth. This optimism is supported by strong existing IP momentum and contributions from new characters like Chiikawa [1][11] 3. Sanrio's China Segment Performance: Sanrio reported a 120% year-over-year increase in China revenue to RMB376 million, with royalties revenue up 158% to RMB251 million, significantly exceeding consensus estimates [2][11] 4. Character Popularity: The continued popularity of characters such as Hello Kitty and Kuromi is driving growth in the licensing business, with a broader character lineup contributing to brand visibility and sales [3][11] 5. Revenue Breakdown: While specific breakdowns of IP revenue were not disclosed, it is noted that sub-licensing revenue contributed over 60% of total IP revenue, with Alifish's sub-licensing revenue growing over 90% year-over-year in FY2025 [11][12] 6. Valuation and Target Price: The target price for Damai is set at HK$1.4, based on a sum of the parts valuation, assuming a 40% net margin and a 20x FY26E P/E ratio, reflecting Damai's market leadership [12][11] 7. Risks Identified: Potential risks include market share pressure in movie ticketing, softer-than-expected movie content performance, intensified competition in offline entertainment ticketing, macroeconomic softness affecting entertainment consumption, and content censorship impacting launches [15][11] Other Important but Possibly Overlooked Content - Market Capitalization: Damai's market cap is reported at HK$35,254 million (approximately US$4,491 million) [5][11] - Expected Returns: The expected share price return is 18.6%, with no expected dividend yield [5][11] - Analyst Contact Information: Analysts Vicky Wei and Alicia Yap are available for further inquiries, indicating a structured approach to investor relations [6][11]
大麦娱乐：积极的授权收入，通过阿里实现突破，三丽鸥中国授权收入强劲-Damai Entertainment Holdings (1060.HK)_ Positive Read-through to Alifish_ Strong Sanrio China Licensing Revenue