On Wednesday at 11:14 AM (Bangkok time), the share price of Major Cineplex Group Public Company Limited (SET: MAJOR) jumped by 4.35% or THB 0.30 to THB 7.20, with a trading value of THB 18.37 million.
Asia Plus Securities wrote that MAJOR’s Board of Directors has approved a share buyback program with a budget not exceeding THB 550 million, or up to 68 million shares, representing 9.97% of the company’s outstanding shares. The buyback will take place from October 1, 2026, to March 31, 2027, reflecting the company’s view that its current share price is significantly below its intrinsic value.
This also underscores the company’s confidence in its strong financial position, with net gearing at only 0.59 times and sufficient liquidity to support the program as of the end of 2Q26, even after conducting three previous buybacks and capital reductions. MAJOR expects that reducing the number of shares in circulation will boost earnings per share and return on equity over the long term, enhancing shareholder returns while maintaining price stability.
The brokerage views this fourth consecutive buyback announcement since 2023 as clear evidence of the management’s capital allocation discipline, focusing on long-term value creation via share reduction rather than increasing dividend payouts in the short term. The company’s proven track record of completing its past buyback plans and retiring all repurchased shares adds to the credibility of the program and supports the potential improvement in future EPS quality.
Earnings recovery in 3Q-4Q26 is expected to be driven by several blockbuster films, including Spider-Man, Odyssey, and local titles. Major releases towards the end of the year—such as “Death Whisperer 3,” “Nakee 3,” “E Riam Sing 2,” and “Avengers: Doomsday”—are also anticipated to boost revenues from admissions, concessions, and advertising.
Expansion of IMAX theaters and cost reduction measures should further improve operating leverage. Box office revenue growth is expected to drive a strong earnings recovery for MAJOR in the latter half of 2026, with additional benefits from the share buyback reflected in higher EPS and ROE, thus clarifying the company’s intrinsic value.
Asia Plus maintains its ‘Buy’ rating on MAJOR, with a target price of THB 10.22 per share. The brokerage believes the market still places greater emphasis on past performance rather than the ongoing recovery. With MAJOR demonstrating strong film programming, improved operational efficiency, and share buybacks that support shareholder returns, there remains significant upside potential in the current share price relative to projected profit growth.
