The Zhitong Finance App learned that Daimo released a research report saying that it maintained the IMAX China (01970) “in sync with the market” rating and raised the 2022-25 net profit forecast by 2% to 4%, reflecting a more positive recovery outlook. The target price rose from HK$10.5 to HK$10.9.

According to the report, the company's total revenue for the second half of last year was US$40.6 million, a year-on-year decrease of 32% and 16% lower than the bank's expectations. As for gross profit, which fell 40% year over year to 21.1 million US dollars, lower than the bank's forecast of 24%; adjusted net profit also fell 28% year over year to 14.7 million US dollars, which was 8% worse than the bank's forecast.

The bank believes that although the performance falls short of expectations, the company's management's guidance that this year's IMAX box office will be close to 2019 levels is an encouraging sign. It is expected that the group will grow strongly, driven by the abundance of Hollywood and mainland movies released this year and suppressed demand.