Major Cineplex Group

Major Cineplex Group Plc (MAJOR) 
 

9M11 results were disappointing due to higher film hire and SG&A. The floods will also delay some blockbuster premieres to Dec. Despite fewer Hollywood blockbusters in 2012, we see strong demand for Thai films and higher ticket prices from 35mm-to-digital conversion. Major’s 9M11 core profit surged 55.6% yoy but was 67% of our full year forecast. We lower our 2011 estimate to reflect the flood impact in 4Q11. But we raise our target price (DCF and PEG) on higher 2012-13 estimates due to expansion and higher ticket prices; OUTPERFORM.