[ET Net News Agency, 14 February 2018] CICC Research raised its target price for IMAX
China Holding (01970) by 38.9% to HK$25, and upgraded its rating to "buy" from "hold".
The research house noted three fundamental improvements: First, IMAX China's new
multi-programming strategy refines its film selection and release process; Second, strong
installations and screen signings should encourage faster-than-average penetration of
lower-tier cities. Third, its take rate should rise from 2018 as Chinese films gain weight
in its film mix and discounts end.
CICC revised up its 2017 and 2018 earnings forecasts by a respective 6% and 14% to
US$42.9k and US$51.3k, which imply 17.8% and 19.7% growth and adjusted EPS of HK$0.93 and
HK$1.12. (KL)