On Monday at 11:40 AM (Bangkok time), the share price of Major Cineplex Group Public Company Limited (SET: MAJOR) rose by 5.80% or THB 0.40 to THB 7.30, with a trading value of THB 17.63 million.
Krungsri Securities (KSS) wrote that MAJOR achieved strong year-on-year net profit growth for the first quarter of 2026 due to a low base effect, although profits declined quarter-on-quarter in line with seasonal trends.
MAJOR recorded a net profit of THB 75 million in 1Q26, representing an increase of 126% year-on-year, but a decrease of 78% quarter-on-quarter. The result was 12-13% higher than expectations, primarily due to better-than-expected cost management.
Excluding extraordinary items, normalized profit was THB 79 million, showing a rise of 48% year-on-year and a decrease of 70% quarter-on-quarter. The year-on-year growth was mainly attributed to last year’s low profit base. The figure accounted for 15% of the full-year forecast.
Total revenue for the quarter was THB 1.6 billion, increasing by 14% year-on-year. This positive performance was supported by the high box office revenues from several popular films, such as “The Undertaker 2” and “Avatar,” resulting in robust growth in ticket sales (+21% year-on-year) and food and beverage sales (+22% year-on-year).
Meanwhile, advertising income decreased by 11% year-on-year, reflecting a continued weakness in the media industry. On a quarterly basis, normalized profit declined due to seasonality, with the previous quarter considered the high season. Consequently, total revenue dropped 30% quarter-on-quarter, with ticket and food & beverage sales decreasing by 35% and 31%, respectively.
Looking forward, the profit outlook for the second quarter of 2026 remains uncertain in terms of year-on-year growth. In early 2Q26 (up to early May 2026), there were relatively few blockbuster films released. However, towards the end of the quarter, several highly anticipated movies such as “Supergirl” and “Toy Story” are scheduled for release.
Krungsri maintains its full-year 2026 normalized profit forecast for MAJOR at THB 520 million, which represents a 12% year-on-year decline due to a less compelling film lineup compared to the previous year, both in Thai and Hollywood markets.
The 2026 film lineup, on the other hand, is expected to be stronger in the fourth quarter, with movies like “Avengers,” “Nakee 3,” and “Dune 3” slated for release. Notably, the company’s collaboration with TKN to expand into the snack market has yet to show significant progress.
Following these, Krungsri maintains a ‘Buy’ recommendation with a 2026 target price of THB 9.10 per share. Despite the anticipated 18% year-on-year drop in 2026 net profit owing to a weaker film slate and flat earnings projected for 2027–2028, MAJOR continues to present an attractive valuation.
The stock currently trades at a forward P/E of just 10x—compared to the global cinema average of 10x–20x—and at only 1.0x price-to-book. Furthermore, a share buyback program is expected to boost earnings per share (EPS) by 11% if capital is reduced, and MAJOR is anticipated to maintain a steady dividend yield of about 3% annually. The company is also in the process of developing related businesses to create new growth drivers for the future.
