As per an analysis by Kiatnakin Phatra Securities (KKPS), Major Cineplex Group Public Company Limited (SET: MAJOR) is gearing up for a potential turnaround in the second half of 2025 after delivering quarterly results that, while better than expected, highlighted a sluggish start to the year.
For the second quarter of 2025, MAJOR reported pre-exceptional profits of THB 135 million. Though this marked a steep 51% year-on-year decline, it outpaced KKPS’ forecast of THB 110 million. Admission revenue slipped by 2% year-on-year, concession sales decreased 3%, and advertising income dropped sharply by 23%.
On the upside, the company’s bowling and rental segments achieved mid-single-digit growth, buoyed by strategic adjustments aligning closer to customer demand. Expense management was a bright spot, with selling, general, and administrative (SG&A) expenses down 9% year-on-year and 8% below analyst estimates.
Despite the quarterly upside, the company’s first-half net profits covered just 32% of KKPS’ full-year 2025 forecast, a notable decline from 41% and 61% for the same period in 2023 and 2024, respectively. This reflects the timing of major film releases, which tend to drive cinema performance for the sector.
Looking ahead, KKPS expects a robust recovery for MAJOR in the second half of the year, underpinned by a compelling pipeline of both international and Thai films. High-profile releases such as “Jurassic World,” “Avatar 3,” “Death Whisperer 3,” and “Anong 2” are set to hit theaters, fueling optimism for a marked rebound. Management identified July as MAJOR’s best-performing month in 2025 to date, with “Jurassic World” alone generating THB 196 million at the box office. Additionally, the anime hit “Demon Slayer,” released in August, brought in THB 40 million for the company on opening day—a record high for the year.
The final quarter of 2025 is also expected to benefit from strong local content, including sequels with proven box office draw. The previous “Anong” film and “Death Whisperer” series delivered robust performances with THB 110 million and as high as THB 550 million in prior installments.
KKPS projects that this positive momentum will extend well into 2026. A stronger slate of Thai films is anticipated in the first half of next year, rebounding from a particularly weak showing in early 2025. Meanwhile, a series of anticipated Hollywood blockbusters—including “Avengers: Doomsday,” “Frozen 3,” and “Toy Story 5″—is set to bolster admissions, with concession and advertising revenues closely following box office trends.
Following these developments, KKPS remains optimistic about MAJOR’s outlook, reiterating a ‘Buy’ rating with a target price of THB 14.40 per share amid promising prospects for both box office and ancillary revenues.
