Stock Track | Damai Entertainment Soars 5.04% on Chiikawa Series Growth Potential and Citi Upgrade

Stock Track
Jul 18

Damai Entertainment (01060.HK) saw its stock price soar 5.04% during intraday trading on Friday, as investors reacted positively to a bullish analyst report highlighting the company's growth potential from the popular Japanese manga series Chiikawa.

Citi analysts have upgraded Damai Entertainment's rating to "buy" from "buy/high risk," citing the robust sales potential of the Chiikawa series. The analysts believe that Chiikawa could become one of the top three revenue-contributing IPs for Damai's subsidiary Alifish, which holds the rights to promote, sub-license, and sell Chiikawa merchandise in mainland China.

The upbeat outlook has led Citi to raise its target price for Damai Entertainment to HK$1.40 from HK$0.92, representing significant upside potential from the stock's last traded price of HK$1.19. Citi expects the Chiikawa series to contribute between 100 million yuan to 200 million yuan in revenue for the company in FY 2026, with potential margin improvements beyond that period. This positive growth prospect appears to be the primary driver behind today's stock surge, as investors bet on Damai's expanding presence in the lucrative IP merchandising market.

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