Equity Analysis /

Major Cineplex Group PCL: Is the box office bouncing back?

  • Weak Jan-Feb top-10 box office takings …

  • …but Godzilla vs. Kong reawakened the cinema in Mar

  • What’s next?

Napon Jaisan
Napon Jaisan

Equity Research Analyst

Bualuang Securities
1 April 2021

The impressive Thailand premiere of Godzilla vs. Kong has eased our concerns that COVID-19 may have permanently altered movie-watching behavior. But we don’t recommend taking positions at MAJOR’s current stock price, which implies a 2021 PER of 23x (2SDs above its mean). Thai cinema will re-enter silent mode in Apr-May. We believe that May is good timing to accumulate the stock, ahead of the F9 big bang in June.

Weak Jan-Feb top-10 box office takings …

Thailand’s top-10 box office takings in Jan-Feb totaled Bt48m, against Bt335m in Jan-Feb 2020. Sales in Jan were Bt26m, down by 87% YoY and 87% MoM. The biggest gross-taker was Monster Hunter at just Bt9m in Jan. Feb receipts totaled Bt22m, down 82% YoY (flattish MoM). The highest-grossing film in Feb was Tom and Jerry at only Bt5m. Thailand’s box office in Jan-Feb was hit by the dual curses of a recent COVID-19 outbreak and a weak movie line-up. Many Hollywood blockbusters and Thai films were postponed.