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Lehua Entertainment rose by 30% yesterday to HK$5.3 in the black market segment, and continued to rise today, exceeding the high of HK$6.3 at one point. It can be said that investors are very optimistic about the company. As for the reason, there should be the following two points:
On the one hand, as far as the concept sector is concerned, the stock has obvious scarcity. As the first domestic artist brokerage company listed on the Hong Kong stock market, Lehua Entertainment’s experience model is asset-light and high-margin, which investors are optimistic about. Moreover, according to Frost & Sullivan’s statistics, in 2021, Lehua Entertainment will rank first among its peers in terms of income from artist management.
On the other hand, after years of operation, Lehua Entertainment has rich experience in artist packaging and management, and has created many popular groups and artists. For example, the company’s Wang Yibo, Huang Minghao, and Meng Meiqi are all top-notch at the moment.
In addition, Lehua Entertainment also took advantage of the timing of listing. China opened up its epidemic control measures in December last year. In order to stimulate economic vitality, the government is now encouraging consumption in a fancy way. There are 2 more days left before the Lunar New Year, and artists can make a good start by showing their faces and attracting money on various David TV.
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