G Sachs issued a Buy rating for DAMAI ENT despite its FY2026 results missing expectations due to ongoing investments in Damai International and its IP merchandise business, which negatively impacted adjusted EBITA. The firm anticipates continued near-term pressure on profitability but believes these challenges are already reflected in the market price. They expect a business recovery in the second half of FY2027, supported by new retail expansions and the potential of live entertainment content. Revenue forecasts for FY2027 and FY2028 were lowered due to weaker IP merchandise performance, and the target price was reduced from HKD0.92 to HKD0.82.
