Morgan Stanley issued a report saying that in the face of a wide range of box office declines in the industry, it is expected$IMAX China Holding, Inc. (01970.HK)$Total revenue in the second half of last year will decline by 18% year-on-year, while adjusted net profit will decrease by 22% year-on-year.

However, the bank said that although the group's box office is expected to fall 17% year-on-year in the second half of last year, it is better than the 40% decline in the industry as a whole, while its market share is estimated to have increased to about 5% from 3% to 4% the previous year.

Morgan Stanley raised the target price of IMAX China shares from 9.8 yuan to 10.50 yuan, maintaining the rating "in step with the market." The bank believes that the group's performance in the second half of last year has been fully expected by investors, and the focus has shifted to the recovery this year and next. Due to factors such as the recovery of the industry, the group's performance is expected to rebound strongly this year, with revenue expected to grow by 29% year-on-year, and net profit to rise by 108% year-on-year.