MAJOR Jumps 2% on an Earnings Rebound in 4Q20, Analyst Rates Outperform with TP at ฿22.2

The share price of Major Cineplex Group Public Company Limited (MAJOR) rose ฿0.40/share or 2.12% to ฿19.30/share with a trading value of 49 million baht as 4Q20 earnings result beat expectations.

 

KGI Securities reiterated a rating of Outperform on MAJOR with a target price of ฿22.20/share, stating a rebound 4Q20 net profit of Bt328mn has beat its forecast and the consensus that expected net losses of Bt33mn and Bt29mn, respectively, due to larger than expected share of profit from subsidiaries. Operating earnings in 4Q20 were still a loss of Bt160mn, improving from a loss of Bt220mn in 3Q20 but down from a profit of Bt244mn in 4Q19. Though the outlook is cloudy in 1Q21 due to the new wave of COVID-19 infections. 

 

KGI maintained its earnings forecast for MAJOR’s 2021F at a net profit of Bt941mn, backed by the anticipated further easing of COVID-19 and stronger movies from Hollywood from 2Q21 onward. 

 

Meanwhile TISCO Securities recommended “HOLD” with a target price of ฿17.00/share, expecting a weakening 1Q21 due to the reimplement of social distancing caused by a resurgence of Covid-19 outbreak, and Hollywood blockbusters delay. TISCO believes the pandemic situation will improve in the second half of this year after Covid-19 vaccine rollout. 

 

Projecting a 2021F net profit to make a turnaround to 733 million baht and full-year revenue will be 7,916 million baht (+186% YoY), driven by American blockbusters like Black Widow, Godzilla VS Kong, Fast & Furious 9, Spider-Man, The Matrix 4 and Venom 2.