The Zhitong Finance App learned that Cinda International released a research report saying,I recommend IMAX China (01970), with a target price of HK$9.5.With the mainland's normalization of the prevention and control of the epidemic, economic activity recovers, which is expected to drive a recovery in the offline consumption scenario. Market demand for watching movies and the gradual release of new film supply capacity (domestic+import), movie box office is expected to continue to pick up, driving performance recovery for related companies. The subsequent long holiday box office in the mainland is expected to be a catalyst for stock prices.

According to the report, IMAX China plans to continue to expand its network this year, strengthen cooperation with mainland producers, and push more mainland films to use the company's technology. Since the costs associated with domestic films are lower, it is expected to help increase the gross profit margin as the penetration rate of IMAX domestic films increases. The market expects the company's revenue and adjusted profit for 2022-2024 to compound annual growth of 34% /1.1x. Among them, the adjusted profit for 2023 will rise to nearly 2019 levels. The current price is equivalent to 9 times the predicted price-earnings ratio for 2023, which is more than 1 standard deviation lower than the company's five-year average valuation. As industry sentiment is expected to pick up, the bank believes the valuation is an opportunity to be reassessed.