Major Cineplex Group
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Still screening a feel-good movie OUTPERFORM - Maintained Share price: Bt17.50 Target price: Bt19.00
Major Cineplex Group Plc (MAJOR)
Major’s head of IR has indicated decent 1Q12 results and reaffirmed its strong revenue growth outlook for the year. As Major embarks on its aggressive upcountry screen expansion, the showing of popular Thai films and overall film hire rate cuts should help boost margins. Our FY12-14 estimates and target price (a combination of DCF and PEG) are higher on stronger cinema demand growth. Earnings could surprise on the upside on the back of strong cinema demand and margin expansion from cinema ads and more Thai films. Outperform maintained.
