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Major Cineplex Group PCL: Net loss in line with our model

  • Net loss was in line with our estimate
  • MAJOR reported a Bt120m net loss for 1Q21
  • The top-line totaled Bt853m

MAJOR’s stock price has dived almost 25% from its March peak of Bt23.40 (our target price is Bt23). So there is currently 25% upside from the current market price to our target price. We think now is a good time to buy cinema on dips. Moreover, June has a big line-up of Hollywood blockbusters—F9, (the sequel to The Fate of the Furious, 2017), the ninth iteration in the main series (and the 10 full-length film) of the Fast & Furious franchise, is slated to screen. Our call shifts up (fast & furiously) from HOLD to TRADING BUY (no Tokyo Drift).

Net loss was in line with our estimate

MAJOR reported a Bt120m net loss for 1Q21, shallower by 53% YoY but a QoQ reversal from black ink for 4Q20. Stripping out an extra item—an expected credit loss of Bt9m—the core loss would be Bt111m, shallower by 57% YoY but a QoQ reversal. The net loss was in line with our estimate and the consensus expectation.


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