[ET Net News Agency, 18 October 2017] Goldman Sachs raised its target price for IMAX
China Holding (01970) to HK$26.37 from HK$24.2, and maintained its "buy"
rating.
The research house said China's overall industry box office realized stronger growth
during the National Holiday (1-7 October), rising 41% yoy ex-service fees, a pickup in
momentum from 28% yoy growth in September.
Goldman thinks the recovery was primarily driven by improving quality of local language
movies and stabilizing ticket prices.
IMAX Corp will report its 3Q results on 26 October which will include operating results
for IMAX China. IMAX Corp has disclosed 3Q Greater China box office up 0.8% yoy and
Goldman expects 7%/6% decline in 3Q Rev/NP for IMAX China. Yet, the research house
believes 4Q would be much better in terms of growth momentum for IMAX China, and expects
42%/54% yoy rise for Rev/NP respectively, driven by more sales of screens and higher box
office.
Goldman raised its 2018-21 EPS forecasts by up to 12.3% due to better box office outlook
(up 4%-5%) and lower SG&A ratio. (KL)