Alibaba movie unit's pivot, rebrand bring US$2 billion value gain
DAMAI Entertainment Holdings, formerly Alibaba Pictures Group, is shifting its focus from movies production to faster-growing entertainment segments targeting younger consumers – and investors are taking notice.
Since its May 19 earnings report, which highlighted a pivot towards intellectual property (IP) licensing and live events, the company's shares have roughly doubled, making it the top performer on Hong Kong's Hang Seng Composite Index and adding US$2 billion in market valuation. Several analysts have since upgraded their outlooks.
The rebrand to Damai Entertainment, effective this month, reflects this broader focus. While its core film production business shrank, Damai still posted double-digit growth in both sales and profit for the fiscal year ended Mar 31 – driven by its IP merchandising and live entertainment arms.
The Damai name, originally tied to its concert and event unit, now represents the company's alignment with China's 'new consumption' trend. Young consumers are increasingly drawn to tech-driven, emotionally engaging experiences, and Beijing is encouraging more spending to boost the economy.
The name change and strategic shift are a 'turning point', signalling Damai's ambition to become a more well-rounded offline entertainment provider, Citigroup analysts said in a note.
The stock has already surpassed Citi's HKD$0.92 target and China International Capital's revised HKD$0.98 target.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
Still, Damai remains a penny stock with notable risks. Its film and TV segment shrank 9.6 per cent last year, and content investment remains volatile. Citi maintains a 'Buy/High Risk' rating, citing margin uncertainties.
Its valuation has also become high, according to Shen Meng, a director at Beijing-based Chanson & Co. 'Short-term stock price fluctuations increase valuation risks,' he said. The stock is trading at nearly 29 times its forward earnings estimates, far above a ratio of around 10 for the Hang Seng Index, data compiled by Bloomberg showed.
But he believes the pivot towards younger consumers is smart: 'Young people have a longer consumption cycle.'
Pokemon and Sanrio
The move is already playing out. Gen Z's spending on hobby goods and celebrity merch has fuelled stock surges for companies such as Pop Mart International Group and Bloks Group – and now Damai. The IP merchandising unit, including the sub-licensing business AliFish, partners with brands such as Pokemon, Sanrio, and Chiikawa, and sub-licenses them to merchants. The unit's revenue grew 73 per cent last year.
The Citigroup analysts call AliFish 'the nation's largest IP licensing agent' and the 'young people's underlying supplier for IP merchandising'.
Meanwhile, Damai's live entertainment business – concerts, festivals, exhibitions – saw a 236 per cent revenue jump. It also runs a major ticketing platform and expects more growth from international concert sales.
'Entertainment in China has strong, diverse demand,' Shen said. 'If one has liked something since childhood, they will basically always like it.' BLOOMBERG
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
3 hours ago
- Business Times
Four candidates assessed for Fu Yu's board, with no findings against suitability
[SINGAPORE] Four proposed directors for Fu Yu Corporation have been assessed by an independent party, with no findings made against their suitability for the role, said the company on Friday (Jun 20) evening. Fu Yu currently only has one director – chief executive David Seow – after all three of its independent directors resigned on Jun 15. The company has since appointed Asian Corporate Advisors (ACA) to assess four candidates proposed as independent directors: Gilbert L Rodrigues, Ralf Pilarczyk, Yang Zhenrong and Haytham Al Essa. In its bourse filing, Fu Yu said that 'nothing has come to (ACA's) attention that the proposed new independent directors may not be deemed suitable', and that its board 'sees no reason to disagree'. 'To the best of the current board's knowledge, the proposed new (directors) are not involved in matters relating to FYSCS,' the company added, in reference to its unit Fu Yu Supply Chain Solutions, which has been under investigation. The update comes ahead of Fu Yu's annual general meeting (AGM) on Jun 27. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up In an earlier filing on Friday, the company addressed questions from the Securities Investors Association (Singapore), or Sias, as well as shareholders. Fu Yu said that its 'day-to-day operations and decision-making processes remain unaffected' by the resignation of all its previous independent directors – Royston Tan, Christopher Huang and Daniel Poh. It also addressed queries on its ongoing investigations into FYSCS – relating to Fu Yu's acquisition of the unit, purported misuse of the FYSCS' resources and a pre-paid commission. 'Currently, no fraud (in the legal sense) has been uncovered,' said Fu Yu, adding that there was no potential liability arising from the transactions in question, 'as well as FYSCS in general'. Asked by Sias if it would release findings by Rajah & Tann and PwC Risk Services ahead of the AGM, Fu Yu said that it would first conduct a 'full Maxwellisation process' relating to the people mentioned in the report, which could take between four to six weeks. Maxwellisation is a legal procedure in which those subject to potential criticism are given an opportunity to respond. 'The company (will) seek legal advice and will deliberate on its next steps after considering the information obtained through the Maxwellisation process, and will update shareholders thereafter,' said Fu Yu. In June last year, FYSCS also received a letter of demand for US$925,773.57 in compensation from another company, Evertree Hongkong. On Jun 5 this year, an arbitral tribunal ruled in favour of Evertree, with Fu Yu required to pay S$1.67 million. Asked about the matter, Fu Yu said that FYSCS had fulfilled its payment obligations on Jun 9 and is solvent. Fu Yu ended Friday at S$0.09, down 4.3 per cent.
Straits Times
5 hours ago
- Straits Times
Iran rules out nuclear talks under fire, sources say Qatar met energy majors
Iran launched a new barrage of missiles at Israel early on June 20. PHOTO: REUTERS DUBAI/JERUSALEM - Iran said on June 20 it would not discuss the future of its nuclear programme while under attack by Israel, as Europe tried to coax Tehran back into negotiations and the US considers whether to get involved in the conflict. A week into its campaign, Israel said it had struck dozens of military targets overnight, including missile production sites, a research body involved in nuclear weapons development in Tehran and military facilities in western and central Iran. Iran launched a new barrage of missiles at Israel early on June 20, striking near residential apartments, office buildings and industrial facilities in the southern city of Beersheba. After air raid warnings later that day, Israeli media said initial reports pointed to missile impacts in Tel Aviv, the Negev and Haifa. World oil markets are on high alert for any strikes that hit energy facilities in Iran or elsewhere in the Gulf which affect supplies. Qatar held crisis talks this week with energy majors after Israeli strikes on Iran's huge gas field, which it shares with Qatar, an industry source and a diplomat in the region told Reuters. Doha was asking firms to raise US, UK and European governments' awareness of increasing risks to global gas supply, they said. QatarEnergy did not immediately respond to a request for comment. The White House said on June 19 that President Donald Trump would decide on US involvement in the conflict in the next two weeks, citing the possibility of negotiations involving Iran in the near future. Iranian Foreign Minister Abbas Araqchi said there was no room for negotiations with the US 'until Israeli aggression stops'. But he was due to meet European foreign ministers in Geneva for talks at which Europe hopes to establish a path back to diplomacy over Iran's nuclear programme. Two diplomats said before the meeting with France, Britain, Germany and the European Union's foreign policy chief that Mr Araqchi would be told the US is still open to direct talks. Expectations for a breakthrough are low, diplomats say. A senior Iranian official told Reuters that Tehran was ready to discuss limitations on its uranium enrichment and that the European's role was now more prominent because Iran is unwilling to engage with the US while under fire from Israel. But any proposal for zero enrichment - not being able to enrich uranium at all - will be rejected 'especially now under Israel's strikes', the official said. Israel began attacking Iran on June 13, saying its longtime enemy was on the verge of developing nuclear weapons. Iran, which says its nuclear programme is only for peaceful purposes, retaliated with missile and drone strikes on Israel. Israel is widely assumed to possess nuclear weapons. It neither confirms nor denies this. Israeli air attacks have killed 639 people in Iran, according to the Human Rights Activists News Agency, a US-based human rights organisation that tracks Iran. The dead include the military's top echelon and nuclear scientists. In Israel, 24 civilians have been killed in Iranian missile attacks, according to authorities. Both sides say they are attacking military and defence-related targets. An Iranian news website said a drone had struck an apartment in a residential building in central Tehran on June 20, but did not give details. Israel's strikes on Iran's nuclear installations so far pose only limited risks of contamination, experts say. But they warn that any attack on the nuclear power station at Bushehr could cause a nuclear disaster. Israel says it is determined to destroy Iran's nuclear capabilities but that it wants to avoid any nuclear disaster in a region that is inhabited by tens of millions of people and produces much of the world's oil. The meeting in Geneva was due to start on the afternoon of June 20. The Swiss city is where an initial accord was struck in 2013 to curb Iran's nuclear programme in return for sanctions being lifted. A comprehensive deal followed in 2015. Mr Trump pulled the US out of the agreement in 2018. A new series of talks between Iran and the US collapsed when Israel started attacking Iran's nuclear facilities and ballistic capabilities on June 12. Mr Trump has alternated between threatening Tehran and urging it to resume nuclear talks. His special envoy to the region, Steve Witkoff, has spoken to Mr Araqchi several times since last week, sources say. Western and regional officials say Israel is trying to shatter the government of Supreme Leader Ayatollah Ali Khamenei. Katz said he had instructed the military to intensify attacks on 'symbols of the regime' in the Iranian capital Tehran, aiming to destabilise it. Iran has arrested an 'agent' of Israel's foreign spy agency Mossad who was sending information on Iranian air defence installations to Israel using WhatsApp messaging, Iran's state broadcaster said. Iranian opposition groups think their time may be near, but activists involved in previous protests say they are unwilling to unleash mass unrest with their nation under attack, and Iranian authorities have cracked down hard on dissent. Iranian state media reported rallies in several cities, describing them as rallies of 'rage and victory,' and 'solidarity and resistance.' REUTERS Join ST's WhatsApp Channel and get the latest news and must-reads.
Business Times
5 hours ago
- Business Times
Singapore private club 1880's staff in bid to revive club with landlord RB Corp's support
[SINGAPORE] Following the abrupt closure of Singapore private members' club 1880 this week, The Business Times (BT) understands that its staff have banded together in an attempt to revive the business. A source told BT that they have made an offer to buy the club's assets, with support and backing from its landlord, RB Corp – a member of Singapore-based and privately-held property investment and development firm RB Capital Group. The group's flagship development at Robertson Quay includes the InterContinental Singapore Robertson Quay hotel where 1880 is located on the third level. The 22,000 square foot club has a restaurant, bar, spa and co-working space. Speaking to BT on condition of anonymity, a staff member confirmed that the 60-plus strong team that ran 1880 have come together to ask RB Corp for help after they were suddenly left jobless. 'We are 100 per cent ready to move forward together, with the same purpose and ethos that made the club possible,' said the employee. 'Most of us have been working there for a long time, with a handful right from when the club started.' The move came after staff were told by liquidators that they can expect to wait some six to 12 months before wages owed can be paid. 'Many people's livelihoods are on the line,' added the employee. 'Some are foreigners who have signed leases here. They are struggling and have taken personal loans.' The club was founded in 2017 by Canadian entrepreneur Marc Nicholson and has since established itself as a hub for discussions on topics ranging from global conflicts to social justice. A NEWSLETTER FOR YOU Friday, 2 pm Lifestyle Our picks of the latest dining, travel and leisure options to treat yourself. Sign Up Sign Up On Tuesday (Jun 17), Nicholson announced to members and staff via e-mail and WhatsApp messages that the club was closing permanently, and that both its holding company 38 Degrees and operating company 1880 Pte Ltd have been placed into provisional liquidation. BT understands that 1880's local business here was profitable, but that it got into debt after aggressively expanding to Hong Kong and Bali. Its abrupt closure here follows that of its Hong Kong branch on May 30, just seven months after opening in the territory. The club was also building a six-storey beachside hotel in Bali that never opened. A source told BT that the staff's bid to revive 1880 will exclude any involvement from its three co-founders – Nicholson, his wife and club CEO Jean Low, and chairman Luke Jones. A check showed that the trio together own just under 80 per cent of 38 Degrees. The minority shareholders comprise many individuals and entities, including the landlord with a 5 to 6 per cent stake. BT understands that RB Corp is owed rent and has terminated the club's lease. When contacted, a representative from the company told BT: 'As 1880's landlord, we sympathise with the employees who have lost their jobs and the members who made 1880 their second home.' Meanwhile, the staff member said that 1880 was not just any club. 'The culture at 1880 is completely different. We've had events and conversations here that you can't get anywhere else in Singapore.' This was echoed by one of 1880's 2,000-plus members, lawyer Lada Shelkovnikova, who has been an active member since she joined in 2019. 'It was more like a home than an F&B (food and beverage) establishment,' she said. 'I've done an event there myself and had all my client meetings there. Its closure is devastating, and we all feel extremely sorry for the employees because the team is absolutely stellar.' She also had high praise for 1880's programming, which she said was only possible thanks to the staff. 'We've had CEOs, wellness gurus, bestselling authors and C-suites who have come to speak at the club and exchange ideas. No one else can replicate this.'
