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China’s easing of foreign film rules bodes well for IMAX: analyst
Wednesday February 22nd 2012More foreign films in China means more potential for Toronto-based IMAX Corp. to profit.
Last week, the Asian superpower announced it will allow more movies made in other countries to screen inside Chinese theaters. Being able to show an additional 14 IMAX and 3D films in China each year and allowing filmmakers to keep more of the money they make – though the controversial “foreign film quota” remains – has Aravinda Galappatthige excited about the Canadian projection pioneer’s future prospects.
“This represents a substantial boost to IMAX both in terms of having additional flexibility to introduce more Hollywood titles to the Chinese market, but perhaps more importantly, leading to a higher [Digital Media Remastering] royalty for IMAX in China,” the Canaccord Genuity analyst told clients on Tuesday, maintaining a Buy rating and a $32 price target on the company’s stock.
“The Chinese market is particularly important to IMAX as it is the second biggest and the fastest growing.”
At least 85 theaters in China currently have IMAX technology installed, with another 132 planning to upgrade their systems in the near future. The total of 217 remains less than the 300 theaters in the United States with IMAX cinemas, though Mr. Galappatthige believes “over time, China can surpass the U.S.“
Blockbuster IMAX titles such as Avatar and Transformers: Dark of the Moon have enjoyed substantial box office success in China. The Motion Picture Association of America, meanwhile, called last week’s agreement a “landmark” in U.S.-China trade relations.
Investors seem to agree. IMAX stock was trading at about $25.10 per share early Tuesday afternoon on the Toronto Stock Exchange, up more than 6% for the day.
Source: Financial Post
Front Page, Industry News
China’s easing of foreign film rules bodes well for IMAX: analyst
Wednesday February 22nd 2012More foreign films in China means more potential for Toronto-based IMAX Corp. to profit.
Last week, the Asian superpower announced it will allow more movies made in other countries to screen inside Chinese theaters. Being able to show an additional 14 IMAX and 3D films in China each year and allowing filmmakers to keep more of the money they make – though the controversial “foreign film quota” remains – has Aravinda Galappatthige excited about the Canadian projection pioneer’s future prospects.
“This represents a substantial boost to IMAX both in terms of having additional flexibility to introduce more Hollywood titles to the Chinese market, but perhaps more importantly, leading to a higher [Digital Media Remastering] royalty for IMAX in China,” the Canaccord Genuity analyst told clients on Tuesday, maintaining a Buy rating and a $32 price target on the company’s stock.
“The Chinese market is particularly important to IMAX as it is the second biggest and the fastest growing.”
At least 85 theaters in China currently have IMAX technology installed, with another 132 planning to upgrade their systems in the near future. The total of 217 remains less than the 300 theaters in the United States with IMAX cinemas, though Mr. Galappatthige believes “over time, China can surpass the U.S.“
Blockbuster IMAX titles such as Avatar and Transformers: Dark of the Moon have enjoyed substantial box office success in China. The Motion Picture Association of America, meanwhile, called last week’s agreement a “landmark” in U.S.-China trade relations.
Investors seem to agree. IMAX stock was trading at about $25.10 per share early Tuesday afternoon on the Toronto Stock Exchange, up more than 6% for the day.
Source: Financial Post
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Front Page, Industry News
China’s easing of foreign film rules bodes well for IMAX: analyst
Wednesday February 22nd 2012More foreign films in China means more potential for Toronto-based IMAX Corp. to profit.
Last week, the Asian superpower announced it will allow more movies made in other countries to screen inside Chinese theaters. Being able to show an additional 14 IMAX and 3D films in China each year and allowing filmmakers to keep more of the money they make – though the controversial “foreign film quota” remains – has Aravinda Galappatthige excited about the Canadian projection pioneer’s future prospects.
“This represents a substantial boost to IMAX both in terms of having additional flexibility to introduce more Hollywood titles to the Chinese market, but perhaps more importantly, leading to a higher [Digital Media Remastering] royalty for IMAX in China,” the Canaccord Genuity analyst told clients on Tuesday, maintaining a Buy rating and a $32 price target on the company’s stock.
“The Chinese market is particularly important to IMAX as it is the second biggest and the fastest growing.”
At least 85 theaters in China currently have IMAX technology installed, with another 132 planning to upgrade their systems in the near future. The total of 217 remains less than the 300 theaters in the United States with IMAX cinemas, though Mr. Galappatthige believes “over time, China can surpass the U.S.“
Blockbuster IMAX titles such as Avatar and Transformers: Dark of the Moon have enjoyed substantial box office success in China. The Motion Picture Association of America, meanwhile, called last week’s agreement a “landmark” in U.S.-China trade relations.
Investors seem to agree. IMAX stock was trading at about $25.10 per share early Tuesday afternoon on the Toronto Stock Exchange, up more than 6% for the day.
Source: Financial Post
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