DAMAI ENT (01060) experienced a significant surge in its stock price during the pre-market session, with shares soaring 5.32% to HKD 0.99. The rally was fueled by a recent profit alert that exceeded market expectations and positive analyst outlooks on the company's growth prospects.

The entertainment company's profit alert for H1 FY2026 forecasts an attributable net profit of no less than RMB 500 million, surpassing Goldman Sachs' estimates by 7%. This impressive performance is attributed to the strong year-on-year growth in DAMAI ENT's Aliyu business and a reduction in investment losses. Morgan Stanley analysts have noted that the company's IP expansion and new retail initiatives are expected to drive higher growth rates in the future.

Looking ahead to the H1 FY2026 results, scheduled for release on November 13, Goldman Sachs projects a total revenue of RMB 3.7 billion, representing a 20% year-on-year increase. This growth is primarily driven by an 84% year-on-year surge in the IP business segment. The bank anticipates continued strong contributions from Sanrio China, while newly introduced IPs, including Chiikawa, are expected 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, further bolstering investor confidence in DAMAI ENT's future performance.