Rebecca Xu, an analyst from Morgan Stanley, maintained the Buy rating on Damai Entertainment Holdings Limited. The associated price target is HK$1.20.
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Rebecca Xu’s rating is based on Damai Entertainment Holdings Limited’s strong financial performance and strategic positioning in the expanding Chinese sub-licensing market. The company reported impressive revenue growth in the first half of 2026, with a significant increase in IP revenue that surpassed both internal and consensus forecasts. This growth is supported by the sustained momentum of Sanrio’s brand in China, which remains robust despite potential cyclical concerns.
Furthermore, the diversification of Damai’s IP portfolio, particularly through its Alifish platform, reduces reliance on any single brand and enhances its appeal as a partner for global IPs entering China. The under-penetrated sub-licensing market in China presents substantial growth opportunities, with consumer demand broadening across various categories. These factors, combined with Damai’s strategic role as a gateway for international IPs, underpin Xu’s Buy rating and the maintained price target of HK$1.20.
Xu covers the Communication Services sector, focusing on stocks such as Iqiyi, JOYY, and Damai Entertainment Holdings Limited. According to TipRanks, Xu has an average return of -15.9% and a 37.50% success rate on recommended stocks.
In another report released on November 19, Goldman Sachs also maintained a Buy rating on the stock with a HK$1.17 price target.