Citi Maintains Buy Rating on DAMAI ENT; IP Business Remains Underexploited
DAMAI ENT's New Entry Point: DAMAI ENT has introduced a ticket purchasing option on Taobao Instant Commerce, leveraging its access to 300 million monthly active users to enhance its ticketing business ahead of the National Day Golden Week holiday.
Future Growth Potential: Citi maintains a Buy rating for DAMAI ENT, highlighting potential new IP collaborations and the opening of a Chiikawa store in Shanghai, while noting that the company benefits from traffic support from Taobao without incurring channel fees, positioning it favorably against competitors like MAOYAN ENT.
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GALAXY ENT Reports 2025 NP at $10.674B, a 21.9% Year-over-Year Increase; Final Dividend Per Share Set at 80 Cents
Financial Performance: Galaxy Entertainment reported a revenue of HKD49.242 billion for the year ended December, marking a 13.4% increase year-on-year, with a net profit of HKD10.674 billion, up 21.9%.
Dividends and Earnings: The company announced an earnings per share (EPS) of HKD2.44 and a final dividend of HKD0.80, an increase from HKD0.50 in the previous year.
Business Growth Focus: Chairman Francis Lui highlighted ongoing growth across all business segments, particularly in the premium mass and super-premium mass segments, with plans for a soft launch of Capella in May 2025.
Future Collaborations: In 2026, Galaxy Entertainment aims to enhance its event offerings through partnerships with global entertainment companies and UFC, alongside a renewed agreement with DAMAI Entertainment for ticketing services.
G Sachs Research: Lunar New Year Consumer Trends Indicate Divergence in Offline Business Formats; Box Office Declines by 40%
Lunar New Year Entertainment Trends: Offline entertainment during the Lunar New Year saw a divergence, with tourism consumption increasing by 19% YoY, while the box office dropped to RMB5.7 billion, a 40% YoY decline, attributed to a lack of quality content.
Stock Market Reactions: Recent stock price corrections in companies like Tencent and Kuaishou are noted, with some nearing the low end of their five-year PE ratio ranges, despite expectations for EPS growth in 2026.
Competitive Landscape: Kuaishou and Bilibili are recognized for their strong business foundations and AI potential, while the music and live streaming sectors face heightened competition.
Goldman Sachs Adjustments: Goldman Sachs lowered its expectations for DAMAI ENT due to potential movie losses but anticipates double-digit growth in IP-related merchandise and overall profit margins improving, maintaining a Buy rating with a revised target price.
G Sachs Updates Ratings and Price Targets for Chinese Gaming and Entertainment Stocks (Table)
Gaming Stocks Overview: Tencent and NetEase are rated as "Buy," with target prices adjusted to HKD752 and USD170, respectively, while other companies like XD Inc. and Perfect World hold a "Neutral" rating.
Entertainment & Media Stocks Overview: Kuaishou and Tencent Music are also rated as "Buy," with target prices set at HKD87 and HKD23, while Bilibili is projected to rise to USD34.2.
Short Selling Activity: Significant short selling is noted for Kuaishou and Tencent Music, with ratios of 12.966% and 10.637%, indicating investor caution.
Market Data Notes: Stock quotes for HK and A Shares are delayed by at least 15 minutes, while US stocks are real-time except for OTC quotes, which are also delayed.
HSI Falls 147 Points at Midday as TRIP.COM-S Plummets Nearly 20%; NEW WORLD DEV Rises 12%
Market Performance: The HSI fell 0.5% to 26,852, with the HSCEI down 0.7% and HSTECH dropping 1.8%, while total half-day turnover reached $163.897 billion.
TRIP.COM-S Decline: TRIP.COM-S shares plummeted 19.6% to $457.6 amid an antitrust investigation, with significant short selling activity reported.
Baidu's Potential Listing Upgrade: BIDU-SW saw a slight increase of 0.3% as rumors circulated about its potential upgrade to a primary listing in Hong Kong.
Positive Outlook for Hong Kong Property: BofA Securities predicts a 5-10% rise in Hong Kong residential property prices this year, with an additional 5% increase expected next year, positively impacting local homebuilders.
BABA-W's Qianwen Surpasses 100M MAUs; Significant Product Update Expected Tomorrow: Report
BABA-W Stock Performance: BABA-W (09988.HK) saw a 5.3% increase, closing at HKD168.3 with a turnover of HKD21.106 billion, while short selling reached $1.95 billion with a ratio of 9.235%.
Qianwen App Growth: The Qianwen app, launched two months ago, surpassed 100 million monthly active users, particularly gaining traction among students and white-collar workers, with a significant product update expected soon.
ALI HEALTH Surge: ALI HEALTH (00241.HK) experienced a notable 15.9% rise, closing at HKD7.58 and achieving a turnover of HKD3.117 billion, with short selling at $702.77 million and a ratio of 22.547%.
DAMAI ENT Performance: DAMAI ENT (01060.HK) increased by 2.1% by midday, with short selling at $19.97 million and a ratio of 18.752%.
Citi Releases Ratings and Target Prices for Chinese Internet Companies (Table)
Stock Ratings and Price Targets: Various companies including Alibaba, Baidu, and JD.com received "Buy" ratings with specific price targets, while others like Meituan and Tencent were rated "Neutral" or faced declines in stock prices.
Short Selling Data: Significant short selling activity was noted for several stocks, with Meituan and Kuaishou showing high short selling ratios of 20.96% and 19.47%, respectively.
Market Movements: The stock prices of companies like Meituan and Tencent experienced declines, while others like Yixin and IGG saw slight increases.
Analyst Insights: Daiwa maintained a "Buy" rating on Meituan, indicating expectations of widening losses for its Keeta service in the upcoming year.
GALAXY ENT Reports 2025 NP at $10.674B, a 21.9% Year-over-Year Increase; Final Dividend Per Share Set at 80 Cents
Financial Performance: Galaxy Entertainment reported a revenue of HKD49.242 billion for the year ended December, marking a 13.4% increase year-on-year, with a net profit of HKD10.674 billion, up 21.9%.
Dividends and Earnings: The company announced an earnings per share (EPS) of HKD2.44 and a final dividend of HKD0.80, an increase from HKD0.50 in the previous year.
Business Growth Focus: Chairman Francis Lui highlighted ongoing growth across all business segments, particularly in the premium mass and super-premium mass segments, with plans for a soft launch of Capella in May 2025.
Future Collaborations: In 2026, Galaxy Entertainment aims to enhance its event offerings through partnerships with global entertainment companies and UFC, alongside a renewed agreement with DAMAI Entertainment for ticketing services.
G Sachs Research: Lunar New Year Consumer Trends Indicate Divergence in Offline Business Formats; Box Office Declines by 40%
Lunar New Year Entertainment Trends: Offline entertainment during the Lunar New Year saw a divergence, with tourism consumption increasing by 19% YoY, while the box office dropped to RMB5.7 billion, a 40% YoY decline, attributed to a lack of quality content.
Stock Market Reactions: Recent stock price corrections in companies like Tencent and Kuaishou are noted, with some nearing the low end of their five-year PE ratio ranges, despite expectations for EPS growth in 2026.
Competitive Landscape: Kuaishou and Bilibili are recognized for their strong business foundations and AI potential, while the music and live streaming sectors face heightened competition.
Goldman Sachs Adjustments: Goldman Sachs lowered its expectations for DAMAI ENT due to potential movie losses but anticipates double-digit growth in IP-related merchandise and overall profit margins improving, maintaining a Buy rating with a revised target price.
G Sachs Updates Ratings and Price Targets for Chinese Gaming and Entertainment Stocks (Table)
Gaming Stocks Overview: Tencent and NetEase are rated as "Buy," with target prices adjusted to HKD752 and USD170, respectively, while other companies like XD Inc. and Perfect World hold a "Neutral" rating.
Entertainment & Media Stocks Overview: Kuaishou and Tencent Music are also rated as "Buy," with target prices set at HKD87 and HKD23, while Bilibili is projected to rise to USD34.2.
Short Selling Activity: Significant short selling is noted for Kuaishou and Tencent Music, with ratios of 12.966% and 10.637%, indicating investor caution.
Market Data Notes: Stock quotes for HK and A Shares are delayed by at least 15 minutes, while US stocks are real-time except for OTC quotes, which are also delayed.
HSI Falls 147 Points at Midday as TRIP.COM-S Plummets Nearly 20%; NEW WORLD DEV Rises 12%
Market Performance: The HSI fell 0.5% to 26,852, with the HSCEI down 0.7% and HSTECH dropping 1.8%, while total half-day turnover reached $163.897 billion.
TRIP.COM-S Decline: TRIP.COM-S shares plummeted 19.6% to $457.6 amid an antitrust investigation, with significant short selling activity reported.
Baidu's Potential Listing Upgrade: BIDU-SW saw a slight increase of 0.3% as rumors circulated about its potential upgrade to a primary listing in Hong Kong.
Positive Outlook for Hong Kong Property: BofA Securities predicts a 5-10% rise in Hong Kong residential property prices this year, with an additional 5% increase expected next year, positively impacting local homebuilders.
BABA-W's Qianwen Surpasses 100M MAUs; Significant Product Update Expected Tomorrow: Report
BABA-W Stock Performance: BABA-W (09988.HK) saw a 5.3% increase, closing at HKD168.3 with a turnover of HKD21.106 billion, while short selling reached $1.95 billion with a ratio of 9.235%.
Qianwen App Growth: The Qianwen app, launched two months ago, surpassed 100 million monthly active users, particularly gaining traction among students and white-collar workers, with a significant product update expected soon.
ALI HEALTH Surge: ALI HEALTH (00241.HK) experienced a notable 15.9% rise, closing at HKD7.58 and achieving a turnover of HKD3.117 billion, with short selling at $702.77 million and a ratio of 22.547%.
DAMAI ENT Performance: DAMAI ENT (01060.HK) increased by 2.1% by midday, with short selling at $19.97 million and a ratio of 18.752%.
Citi Releases Ratings and Target Prices for Chinese Internet Companies (Table)
Stock Ratings and Price Targets: Various companies including Alibaba, Baidu, and JD.com received "Buy" ratings with specific price targets, while others like Meituan and Tencent were rated "Neutral" or faced declines in stock prices.
Short Selling Data: Significant short selling activity was noted for several stocks, with Meituan and Kuaishou showing high short selling ratios of 20.96% and 19.47%, respectively.
Market Movements: The stock prices of companies like Meituan and Tencent experienced declines, while others like Yixin and IGG saw slight increases.
Analyst Insights: Daiwa maintained a "Buy" rating on Meituan, indicating expectations of widening losses for its Keeta service in the upcoming year.
