HK Stock Market Move | DAMAI ENT(01060) rose more than 5% with the potential for May Day box office to achieve growth, institutions optimistic about the company's stable profit margins.

DAMAI ENT (01060) rose more than 5%, as of press time, up 5.36% to HK$0.59, with a trading volume of HK$87.4593 million. On the news front, China Securities Co., Ltd. research report pointed out that with May Day and the summer vacation approaching in 2026, the movie market is expected to gradually recover. Compared to last year's 9 movies and the average level in previous years, there will be a significant increase in the supply of 14 movies during the May Day holiday, second only to 18 movies in 2023. Leading companies such as Maoyan, DAMAI, Light Chaser, and Ruyi will have their movies released, as well as an imported Hollywood film. The bank believes that compared to the movie offseason and low box office base of the May Day holiday in 2025, this year's box office is expected to increase. Goldman Sachs released a research report stating that DAMAI ENT will announce its performance in late May, with market focus on the momentum of its ticketing business, the potential for IP commercialization, and the profit pressure brought by new investments. The bank expects the company's core business (IP and ticketing revenue) and profits to achieve a steady growth of 25% each in the fiscal years 2026 to 2027, while the losses in the movie business will narrow and profit margins will remain stable. The bank believes that the company's leading position in live entertainment is solid, and its concerts and IP commercialization businesses are resilient, with less impact from AI on online entertainment.