[ET Net News Agency, 11 January 2019] Nomura resumed coverage on IMAX China (01970)
with a "buy" rating and a target price of HK$25.
The research house believes the company can continue to expand its network by ~100
screens per annum to reach 847 screens in 2020.
Unlike the screen growth of movie theatre chains, which is largely in lower-tier cities,
IMAX China still has room to grow in tier 1/2 cities as well, and thus Nomura believes it
is under less margin pressure compared to its Chinese downstream peers.
Nomura forecast the earnings of IMAX China will grow faster at a 10% three-year CAGR in
2017-20, thanks to the continuous margin expansions. (KL)
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