Following the lifting of the lockdown, MAJOR’s revenue recovery has built up momentum with more blockbusters slated to hit the screen in 2H22. We believe 2022 will be the firm’s turnaround year—it should mark quarterly net earnings for coming quarters, 3Q-4Q22. However, we see some worrisome behavioral changes for movie-goers in the aftermath of COVID-19. For major blockbusters, their gross takings have nearly hit the pre-COVID level, but people no longer go out to watch mid-small films as they did prior to COVID era. Our recommendation has shifted from TRADING BUY to HOLD.
Net profit was better than estimated
MAJOR reported a Bt131m bottom-line for 2Q22, a YoY turnaround and up 443% QoQ. The results were better than our net profit estimate of Bt67m and the consensus projection of Bt87m. Note that other income rose 99% YoY and 161% QoQ, mainly from receiving discounts on rental and service fees and on the fire insurance for the Sukhumvit branch.