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Published on February 28, 2008

The good performance was due to increased revenue from cinemas and advertising and extra gains from the disposal of the Ratchayothin and Rangsit branches to the Major Cineplex Lifestyle Property Fund (MJLF).

Major Cineplex is Thailand's largest cinema operator. The company is engaged in bowling, karaoke and fitness centres.

The company's consolidated 2007 net profit was a 76.5-per-cent jump from Bt695.18 million in 2006, the company said in a report submitted to the Stock Exchange of Thailand yesterday.

Last year's revenue shot up at an annual rate of 25.52 per cent to Bt6.59 billion, from Bt5.25 billion in 2006, the company said.

Branch expansion of The Esplanade Cineplex and an increase in the company's advertising operations contributed to last year's significant increase in revenue.

Moreover, the company's disposal of its Ratchayothin and Rangsit branches to the MJLF also provided a boost.

Major Cineplex also announced an interim dividend of 55 satang a share, payable on May 2.

KGI Securities (Thailand) predicts the company's stunning earnings will continue this year on the back of its branch expansion, rising revenue from the advertising business, extra gains from the divestment of M Pictures to Traffic Corner Holdings and reversal of its expenses into income following the shutdown of its branch in CentralWorld.

The broker recommends "buy" on the stock, with a target price of Bt20.50 a share.

Major Cineplex is expected to book Bt100 million recently paid to CentralWorld after its branch's closure there, the broker said.

The delay in its listing plan of SF Cinema to next year will benefit Major Cineplex as the broker predicted that SF Cinema would not have sufficient capital to expand business until it lists on the Thai stock market.

Globlex Securities echoed KGI Securities' view by saying Major Cineplex's net profit would surge further this year.

The broker estimates Major Cineplex will realise Bt400 million to Bt500 million extra gain in this year's first quarter.

Of that, the broker predicts Bt150 million will be derived from the sale of its stake in M Pictures, between Bt150 million and Bt200 million from leasing fees from its Ratchayothin Avenue project and between Bt80 million and Bt100 million from the reversal of its rental expenses for its branch in CentralWorld.

The Nation