Goldman Sachs: Maintains "buy" rating for DAMAI ENT (01060) with first-half earnings exceeding expectations.

Goldman Sachs released a research report stating that DAMAI ENT (01060) is expected to announce better-than-expected profits for the first half of the 2026 fiscal year, with projected net profit attributable to shareholders not less than 500 million RMB, which is 7% higher than Goldman Sachs' expectations. According to the company, the significant increase in net profit is mainly driven by factors including strong year-on-year growth in the Ali Fish business and a narrowing of investment losses. Goldman Sachs maintains a "buy" rating for DAMAI ENT and calculates a 12-month target price of 1.3 HKD based on the sum-of-the-parts valuation method. For the upcoming release of the financial results for the first half of the 2026 fiscal year (April to September period) after the market close on November 13, Goldman Sachs predicts that total revenue will reach 3.7 billion RMB, a 20% year-on-year increase, mainly driven by an 84% year-on-year growth in the IP business segment. In terms of the IP business segment, Goldman Sachs expects continued strong contributions from Sanrio China, while new introduced IPs (including Chiikawa) will double the gross merchandise volume (GMV) of Ali Fish; Goldman Sachs believes that with the contributions of new IPs and the expansion of product sales business, the growth of Ali Fish is expected to surpass that of Sanrio China.