Damai Entertainment Holdings Limited (1060) AI Stock Analysis

• Market Cap: HK$32.56B
• Dividend Yield: N/A
• Average Volume (3M): 314.32M
• Price to Earnings (P/E): 81.3
• Beta (1Y): 1.29
• Revenue Growth: 31.62%
• EPS Growth: 3.08%
• Country: HK
• Employees: 1,556
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 0.00
• Shares Outstanding: 29,875,865,000
• 10 Day Avg. Volume: 269,508,362
• 30 Day Avg. Volume: 314,319,181
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$1.19
• Price Target Upside: 10.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 56 Neutral
• Price Target: HK$1.00 ▼(-7.41% Downside)

The overall stock score is primarily influenced by strong financial performance, despite operational challenges and negative cash flow. Technical analysis indicates bearish momentum, and high valuation metrics suggest the stock is overvalued, limiting upside potential.

Damai Entertainment Holdings Limited Business Overview & Revenue Model

Company Description

Damai Entertainment Holdings Limited, an investment holding company, operates in the content, technology, and IP merchandising and commercialization businesses in Hong Kong and the People's Republic of China. The company invests, produces, promotes, markets, and distributes entertainment contents comprising film, online drama series, and broadcasting and television programs, as well as short dramas for children; and operates film ticketing and technology platforms under Tao Piao Piao and Yunzhi names, as well as Beacon AI, a data product which provide intelligent promotion and distribution services for the entertainment industry. It also engages in the provision of digital collectibles issuance and factoring services; establishment of platforms; and engages in the life cycle of live performances, such as performances ticketing, on-site event services, ticketing issuance systems, and venue operations to the organization, as well as investment, production, and promotion of the performance contents. In addition, the company provides investment management and consultation services; invests in production and distribution of film and television copyrights; technological consultation, and technology transfer and services; technical promotion services; exchanging and planning services for screen-based, cultural, and art events; performance brokerage; and engages in the design, production, agency sale, and release of advertisements. Further, it offers advertising and sale of entertainment related merchandise and derivative products; computer system services; supplies cinema ticketing and connecting software systems; and provides talent agency, software design and development, IP related products; and sells pop toys and action figures. The company was formerly known as Alibaba Pictures Group Limited. The company was incorporated in 1994 and is headquartered in Beijing, China. Damai Entertainment Holdings Limited operates as a subsidiary of Ali CV Investment Holding Limited.

How the Company Makes Money

Alibaba Pictures generates revenue through multiple streams, including film production and distribution, ticket sales from the films it releases, and ancillary revenues from merchandise and licensing. The company benefits significantly from partnerships with other filmmakers and studios, allowing it to co-produce films and share resources. Additionally, Alibaba Pictures capitalizes on its affiliation with the Alibaba Group, utilizing its vast e-commerce platform for marketing and distributing films, which enhances box office performance and increases viewer engagement. The company's investment in digital content and streaming services also contributes to its earnings, as it expands its reach to online audiences.

Damai Entertainment Holdings Limited Financial Statement Overview

Summary

Alibaba Pictures Group Limited demonstrates strong revenue growth and a solid balance sheet with low leverage and improving return on equity. However, challenges in operational efficiency and negative operating cash flow highlight areas for improvement.

Income Statement

Alibaba Pictures Group Limited has shown strong revenue growth of 119.69% in the latest period, indicating a robust recovery and expansion. The gross profit margin has decreased slightly from 44.12% to 36.97%, suggesting some pressure on cost management. The net profit margin is stable at 5.42%, reflecting consistent profitability. However, the EBIT and EBITDA margins have declined, indicating potential challenges in operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.04, indicating prudent financial leverage. The return on equity has improved to 2.24%, showing better utilization of shareholder funds. The equity ratio remains healthy, suggesting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow performance is mixed, with a significant negative operating cash flow of -1.06 billion, raising concerns about cash generation from operations. However, the free cash flow has improved, showing a growth rate of 103.21%, which is a positive sign. The free cash flow to net income ratio is strong at 1.17, indicating effective conversion of profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.70B	6.70B	5.04B	3.52B	3.65B	2.86B
Gross Profit	2.63B	2.48B	2.22B	1.13B	1.50B	1.39B
EBITDA	799.76M	407.77M	355.03M	-13.01M	239.40M	-18.07M
Net Income	363.58M	363.58M	284.79M	-278.91M	169.85M	-117.19M
Balance Sheet
Total Assets	23.50B	23.50B	21.46B	15.57B	15.58B	15.54B
Cash, Cash Equivalents and Short-Term Investments	4.16B	4.16B	7.42B	3.92B	3.55B	3.90B
Total Debt	661.39M	661.39M	544.30M	145.77M	177.25M	326.47M
Total Liabilities	7.03B	7.03B	5.64B	1.46B	1.53B	1.70B
Stockholders Equity	16.23B	16.23B	15.72B	14.07B	14.02B	13.79B
Cash Flow
Free Cash Flow	-606.35M	-1.23B	810.31M	570.51M	-514.17M	242.49M
Operating Cash Flow	-575.25M	-1.06B	822.19M	580.36M	-497.63M	264.95M
Investing Cash Flow	-2.74B	-1.28B	-298.76M	-232.78M	262.02M	54.37M
Financing Cash Flow	424.07M	429.62M	-93.55M	-48.32M	-80.46M	-387.75M

Damai Entertainment Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.08
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1060, the sentiment is Negative. The current price of 1.08 is below the 20-day moving average (MA) of 1.16, below the 50-day MA of 1.17, and above the 200-day MA of 0.75, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 41.61 is Neutral, neither overbought nor oversold. The STOCH value of 31.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1060.

Damai Entertainment Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2230	78 Outperform	568.07M	10.81	8.51%	5.83%	32.53%	7.06%
1981	59 Neutral	2.65B	14.27	4.15%	3.75%	0.59%	0.00%
1060	56 Neutral	HK$32.56B	81.34	2.29%	―	31.62%	3.08%
0136	56 Neutral	45.92B	33.95	-1.17%	―	-13.62%	-8.47%
1003	43 Neutral	1.33B	―	0.00%	―	0.00%	0.00%
0326	42 Neutral	5.39B	-16.99	-17.14%	―	184.30%	3.58%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Damai Entertainment Holdings Limited Corporate Events

Damai Entertainment Successfully Concludes Postponed AGM with Key Resolutions Passed

Damai Entertainment Holdings Limited, formerly known as Alibaba Pictures Group Limited, announced the successful passing of all resolutions at its postponed Annual General Meeting held on August 15, 2025. Key resolutions included the adoption of financial statements, re-election of directors, re-appointment of auditors, and granting of mandates for share issuance and buy-backs. These decisions are expected to strengthen the company’s governance and operational capabilities, potentially enhancing its market position and shareholder value.

The most recent analyst rating on (HK:1060) stock is a Buy with a HK$0.55 price target. To see the full list of analyst forecasts on Alibaba Pictures Group Limited stock, see the HK:1060 Stock Forecast page.

Damai Entertainment Announces Contingency Plan for AGM Amid Cyclone Threat

Damai Entertainment Holdings Limited, a company incorporated in Bermuda, has announced a contingency plan for its Annual General Meeting (AGM) scheduled for August 14, 2025, due to the potential impact of a tropical cyclone in Hong Kong. If severe weather conditions persist, the AGM will be rescheduled to August 15, 2025, with all resolutions and proxy forms remaining valid for the new date. Shareholders are advised to exercise caution if attending in adverse weather.

The most recent analyst rating on (HK:1060) stock is a Buy with a HK$0.55 price target. To see the full list of analyst forecasts on Alibaba Pictures Group Limited stock, see the HK:1060 Stock Forecast page.

Damai Entertainment Holdings Announces Upcoming AGM and Share Issuance Plans

Damai Entertainment Holdings Limited has announced its upcoming Annual General Meeting scheduled for August 14, 2025, in Hong Kong. The meeting will address key agenda items including the adoption of financial statements, re-election of directors, and re-appointment of auditors. Additionally, the company seeks approval to grant directors the authority to issue additional shares, which could impact its market positioning by potentially increasing its capital base.

The most recent analyst rating on (HK:1060) stock is a Buy with a HK$0.60 price target. To see the full list of analyst forecasts on Alibaba Pictures Group Limited stock, see the HK:1060 Stock Forecast page.

Alibaba Pictures Rebrands as Damai Entertainment Holdings

Damai Entertainment Holdings Limited has officially changed its name from Alibaba Pictures Group Limited, following the issuance of certificates by the Registrar of Companies in Bermuda and Hong Kong. This change, effective from July 2, 2025, includes a new stock short name ‘DAMAI ENT’ while retaining the same stock code ‘1060’. The name change does not affect shareholder rights, business operations, or financial conditions, and existing share certificates remain valid.

The most recent analyst rating on (HK:1060) stock is a Buy with a HK$0.60 price target. To see the full list of analyst forecasts on Alibaba Pictures Group Limited stock, see the HK:1060 Stock Forecast page.

Damai Entertainment Announces Strategic Game Cooperation Agreement

Damai Entertainment Holdings Limited has announced a Game Product Cooperation Framework Agreement between its subsidiary, Shanghai Youwang, and Zhixin Shanghai, a subsidiary of Ant Group. This agreement, involving connected transactions, aims to enhance game product collaborations within the Alibaba Group. The aggregated annual caps for these transactions are set for the upcoming years, indicating significant financial engagements and strategic alignment with Alibaba’s broader business ecosystem.

The most recent analyst rating on (HK:1060) stock is a Buy with a HK$0.60 price target. To see the full list of analyst forecasts on Alibaba Pictures Group Limited stock, see the HK:1060 Stock Forecast page.

Damai Entertainment Grants Shares to Employees Under Award Scheme

Damai Entertainment Holdings Limited announced the grant of 96,412,000 awarded shares to 73 selected employees under its Share Award Scheme. This move, involving both connected and non-connected grantees, aims to incentivize and retain key personnel, potentially impacting the company’s operational dynamics and market positioning positively.

The most recent analyst rating on (HK:1060) stock is a Buy with a HK$0.60 price target. To see the full list of analyst forecasts on Alibaba Pictures Group Limited stock, see the HK:1060 Stock Forecast page.

Damai Entertainment Announces New Cooperation Framework Agreement

Damai Entertainment Holdings Limited has announced a Cooperation Framework Agreement between its subsidiary, Alibaba Pictures (Tianjin), and Beijing Yuyouxiangfa, a consolidated entity of Alibaba Holding. This agreement involves the provision of rental and commissioned services, with aggregated annual caps set for the upcoming financial years. The transactions are considered continuing connected transactions under the Listing Rules, requiring reporting and annual review but are exempt from independent shareholders’ approval due to the applicable percentage ratios.

The most recent analyst rating on (HK:1060) stock is a Buy with a HK$0.60 price target. To see the full list of analyst forecasts on Alibaba Pictures Group Limited stock, see the HK:1060 Stock Forecast page.

Damai Entertainment Announces New Cooperation Framework with Alibaba Subsidiary

Damai Entertainment Holdings Limited has announced a new Game Product and Interactive Product Cooperation Framework Agreement between its subsidiary, Shanghai Youwang, and Hangzhou Xiaoqiao, a subsidiary of Alibaba Holding. This agreement, which involves continuing connected transactions, aims to facilitate collaborations on game and interactive products, potentially impacting the company’s operations and market positioning by strengthening its ties with Alibaba Holding. The transactions are subject to reporting and annual review requirements under the Hong Kong Stock Exchange’s Listing Rules but are exempt from independent shareholders’ approval.

The most recent analyst rating on (HK:1060) stock is a Buy with a HK$0.60 price target. To see the full list of analyst forecasts on Alibaba Pictures Group Limited stock, see the HK:1060 Stock Forecast page.