DAMAI ENT (01060) saw its stock price surge by 5.32% in Monday's trading session, reaching HKD 0.99 with a turnover of HKD 49.24 million. The significant uptick comes on the heels of the company's recent profit alert, which has surpassed market expectations and sparked renewed interest from investors.

The company's positive outlook has caught the attention of major financial institutions. Morgan Stanley highlighted DAMAI ENT's IP expansion and new retail initiatives as key drivers for higher growth rates. Meanwhile, Goldman Sachs noted that the company's H1 FY2026 profit forecast, projecting an attributable net profit of no less than RMB 500 million, exceeds their estimates by 7%. This impressive growth is attributed to the strong year-on-year performance of DAMAI ENT's Aliyu business and a reduction in investment losses.

Looking ahead, DAMAI ENT is set to release its H1 FY2026 results on November 13, after market close. Goldman Sachs anticipates total revenue of RMB 3.7 billion, representing a 20% year-on-year increase, primarily driven by an 84% year-on-year surge in the IP business segment. The bank expects continued strong contributions from Sanrio China, while newly introduced IPs, including Chiikawa, are projected to double the gross merchandise volume (GMV) of Aliyu. Analysts believe that Aliyu's growth will outpace that of Sanrio China, given the new IP contributions and expanded product sales, signaling a promising future for DAMAI ENT in the entertainment and IP licensing sectors.