Damai Entertainment Holdings Limited (1060) AI Stock Analysis

• Market Cap: HK$25.69B
• Dividend Yield: N/A
• Average Volume (3M): 195.64M
• Price to Earnings (P/E): 43.0
• Beta (1Y): 1.33
• Revenue Growth: 40.31%
• EPS Growth: 212.50%
• Country: HK
• Employees: 1,556
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 0.02
• Shares Outstanding: 29,875,865,000
• 10 Day Avg. Volume: 187,161,627
• 30 Day Avg. Volume: 195,641,674
• PEG Ratio: -2.10
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 2.17
• P/FCF Ratio: -11.82
• 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$1.22
• Price Target Upside: 41.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: HK$1.00 ▲(16.28% Upside)

The overall stock score is primarily influenced by strong financial performance, particularly revenue growth and a solid balance sheet. However, technical indicators suggest bearish momentum, and the stock's high valuation relative to earnings limits its appeal. The absence of earnings call insights and corporate events further emphasizes the need for improved operational efficiency and cash flow generation.

Positive Factors

Revenue Growth

The significant revenue growth indicates robust market demand and effective business strategies, enhancing long-term competitive positioning.

Balance Sheet Strength

A low debt-to-equity ratio suggests prudent financial management, providing stability and flexibility for future investments and growth.

Free Cash Flow Improvement

Improved free cash flow indicates better cash management and operational efficiency, supporting sustainable growth and investment capacity.

Negative Factors

Negative Operating Cash Flow

Negative operating cash flow raises concerns about the company's ability to generate cash from core operations, potentially impacting liquidity.

Gross Profit Margin Decline

A declining gross profit margin suggests increased cost pressures, which could affect profitability if not managed effectively.

Operational Efficiency Challenges

Declining EBIT and EBITDA margins indicate potential inefficiencies in operations, which could hinder profitability and growth if unresolved.

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

Damai Entertainment Holdings Limited generates revenue primarily through ticket sales for live events and concerts, which constitutes a significant portion of its income. Additionally, the company earns money by providing event management and production services, which may include logistics, marketing, and venue services for various events. Partnerships with artists, promoters, and venues enhance its earning potential by allowing access to wider audiences and creating co-branding opportunities. Other revenue streams may include merchandise sales associated with events and sponsorship deals with brands looking to reach targeted demographics during live performances.

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: 0.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.86 is below the 20-day moving average (MA) of 0.87, below the 50-day MA of 0.90, and below the 200-day MA of 0.91, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.24 is Neutral, neither overbought nor oversold. The STOCH value of 14.44 is Positive, 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	66 Neutral	HK$442.90M	7.93	8.69%	6.04%	25.88%	0.69%
1981	61 Neutral	HK$1.72B	9.28	7.57%	5.71%	0.59%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
1060	56 Neutral	HK$25.69B	43.00	3.30%	―	40.31%	212.50%
0136	51 Neutral	HK$37.47B	27.53	7.01%	―	-13.62%	-8.47%
0326	47 Neutral	HK$8.72B	-26.63	-14.75%	―	184.30%	3.58%
1003	46 Neutral	HK$1.08B	―	―	―	―	―

Damai Entertainment Holdings Limited Corporate Events

Damai Entertainment Revises Annual Cap Amid Growing Demand

Damai Entertainment Holdings Limited has announced a revision of its annual cap for continuing connected transactions under the Commissioned Production Cooperation Framework Agreement. The company plans to increase the cap from RMB100 million to RMB200 million for the financial year ending March 31, 2026, due to higher-than-expected business volume driven by its expansion in drama series production. This adjustment reflects the company’s strategic response to increased demand and its ongoing investment in premium content, which could enhance its market positioning and operational scale.

The most recent analyst rating on (HK:1060) stock is a Buy with a HK$1.17 price target. To see the full list of analyst forecasts on Damai Entertainment Holdings Limited stock, see the HK:1060 Stock Forecast page.

Damai Entertainment Reports Strong Interim Results and Platform Upgrade

Damai Entertainment Holdings Limited reported a significant financial performance for the six months ending September 30, 2025, with a 33% increase in revenue and a 54% rise in net profit compared to the previous year. The company has also upgraded its Damai APP to enhance user experience with AI-driven features, reinforcing its leading position in the global entertainment industry by expanding its service offerings and user base.

The most recent analyst rating on (HK:1060) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Damai Entertainment Holdings Limited stock, see the HK:1060 Stock Forecast page.

Damai Entertainment Projects Significant Profit Growth for 2025

Damai Entertainment Holdings Limited has announced a significant increase in net profit for the six months ending September 30, 2025, expecting it to be no less than RMB500 million, up from RMB337 million in the same period in 2024. This growth is attributed to the strong performance of its Alifish business and a more robust asset structure, which has reduced investment losses. The company is optimistic about sustained growth in its core operations and plans to expand further in the entertainment sector.

The most recent analyst rating on (HK:1060) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Damai Entertainment Holdings Limited stock, see the HK:1060 Stock Forecast page.

Damai Entertainment Holdings Announces Upcoming Board Meeting for Interim Results

Damai Entertainment Holdings Limited has announced that its board of directors will meet on November 13, 2025, to review and approve the unaudited interim results for the six months ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and could impact its market positioning and stakeholder interests.

The most recent analyst rating on (HK:1060) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Damai Entertainment Holdings Limited stock, see the HK:1060 Stock Forecast page.