Following the lifting of the lockdowns, 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 4Q22. However, we see some worrisome behavioral changes among Thai 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-to-small films as they did prior to COVID era. We recommend a wait-and-see stance for now.
Core profit was in line with our estimate
MAJOR reported a Bt21m bottom-line for 3Q22, down 99% YoY and 84% QoQ. Excluding extra items (on the fire insurance for the Sukhumvit branch, sale of investments and losses from revaluation of assets), core profit would be Bt51m, a YoY turnaround but down 58% QoQ. Core profit was in line with our estimate.