Goldman Sachs lowers DAMAI ENT's target price to 1.17 yuan, maintains "Buy" rating

Goldman Sachs published a report indicating that DAMAI ENT (01060.HK) stock price performed relatively weakly after the earnings announcement. The firm believes the stock price volatility is due to market concerns about the slowdown of DAMAI ENT's domestic ticketing business and increased investment in international operations; DAMAI ENT's high dependence on Japanese IP faces market sentiment shocks under the influence of Sino-Japanese tensions.

However, Goldman Sachs believes that DAMAI ENT's performance in the first half of the 2026 fiscal year is robust. As the company expands its copyright resources from Sanrio to retail and the 2C market, it is believed that strong copyright licensing business will become the core growth engine in the next 6 to 12 months.

Goldman Sachs raised its revenue forecast for DAMAI ENT for the fiscal years 2026 to 2028 by 4% to 10%, reflecting the strong momentum of the IP merchandise business and the better-than-expected performance of live entertainment content revenue within DAMAI ENT's business segments; at the same time, it lowered the adjusted net profit forecast for the fiscal years 2027 to 2028 by 3% to 7%, reflecting additional investments related to DAMAI ENT. The target price was lowered from HKD 1.30 to HKD 1.17, maintaining a "Buy" rating