IMAX China Holding (1970) AI Stock Analysis

• Market Cap: HK$2.86B
• Dividend Yield: N/A
• Average Volume (3M): 95.60K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.50
• Revenue Growth: 10.53%
• EPS Growth: 26.74%
• Country: HK
• Employees: 99
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 1.56
• Shares Outstanding: 339,191,220
• 10 Day Avg. Volume: 23,950
• 30 Day Avg. Volume: 95,603
• PEG Ratio: -0.79
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 3.98
• P/FCF Ratio: 16.07
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: HK$8.50 ▲(0.83% Upside)

IMAX China Holding's overall stock score is driven by its strong financial performance and reasonable valuation. The company's solid profitability and efficient cash generation are key strengths. However, technical indicators suggest a neutral to slightly bearish trend, which tempers the overall score.

IMAX China Holding Business Overview & Revenue Model

Company Description

IMAX China Holding, Inc., an investment holding company, provides digital and film-based motion picture technologies in the People's Republic of China, Hong Kong, Macau, and Taiwan. It operates through three groups: IMAX Technology Network, IMAX Technology Sales and Maintenance, and New Business Initiatives and Other. The company engages in the digital re-mastering of Hollywood and Chinese language films into the IMAX format through a proprietary IMAX DMR conversion process and the exhibition of these films on the IMAX theatre network. It also designs, procures, and provides digital theatre systems at its exhibitor partners' movie theatres, as well as offers related project management, maintenance, and aftermarket services. In addition, the company provides technical research and development, consulting, service, training and marketing services for theatre systems and multimedia technology; and photographic equipment, virtual reality display equipment and related software and hardware, as well as engages in the provision of after-sales services, including installation. Further, it is involved in the wholesale, import, leasing, installing, maintenance, and repairing of movie theatre machinery, equipment, systems, photographic equipment, virtual reality display equipment, and related software; and research and development of software and hardware. Additionally, the company offers gift, handicraft, stationery commodity, clothing and apparel, and electronic products; and creative and conference, business consultation, and culture and art exchange and planning services, as well as operates ticket and publishing agency. It also engages in the design and production of advertising. The company was incorporated in 2010 and is headquartered in Shanghai, China. IMAX China Holding, Inc. is a subsidiary of Imax (Barbados) Holdings, Inc.

How the Company Makes Money

IMAX China generates revenue primarily through several key streams: the sale of IMAX theater systems to cinema operators, which includes both the hardware and ongoing software updates; revenue sharing from box office ticket sales for films screened in IMAX format, where the company receives a percentage of ticket sales; and fees for the licensing of its proprietary technology to film studios for the production of IMAX films. Significant partnerships with major Hollywood studios and local Chinese film producers further enhance its earnings, as these collaborations drive the creation and distribution of IMAX films, increasing demand for IMAX showings in theaters.

IMAX China Holding Financial Statement Overview

Summary

IMAX China Holding demonstrates solid financial health with strong profitability margins and a healthy balance sheet with minimal leverage. While revenue has declined over the years, the company maintains efficiency in operations and cash generation, positioning itself well in the entertainment industry.

Income Statement

The company has shown a decline in revenue over the past three years, with the most recent annual revenue at $80.997 million compared to $124.294 million in 2019. However, gross profit margin and net profit margin have remained relatively stable, indicating efficient cost management. The recent net profit margin stands at 27.43%, showcasing profitability despite lower revenues.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.0053, reflecting minimal debt levels. The equity ratio is high at 82.17%, indicating a solid equity base. Return on equity is robust at 8.11%, suggesting effective utilization of equity to generate profits.

Cash Flow

The cash flow statement shows positive free cash flow growth with a recent increase to $20.059 million. The operating cash flow to net income ratio is approximately 1.39, indicating the company's ability to generate cash from its operations efficiently. Free cash flow to net income ratio is 0.90, reflecting a strong cash conversion from profit.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	94.90M	81.00M	86.98M	73.33M	112.80M	52.33M
Gross Profit	59.02M	44.02M	54.53M	39.70M	68.19M	19.35M
EBITDA	62.41M	48.38M	53.84M	31.94M	63.89M	8.73M
Net Income	33.46M	22.22M	27.50M	10.76M	38.22M	-26.74M
Balance Sheet
Total Assets	358.27M	333.57M	318.28M	326.40M	349.76M	334.79M
Cash, Cash Equivalents and Short-Term Investments	94.17M	80.05M	63.04M	74.97M	98.32M	88.47M
Total Debt	1.24M	1.45M	1.75M	14.64M	4.16M	7.64M
Total Liabilities	59.83M	59.47M	63.91M	93.33M	95.88M	103.19M
Stockholders Equity	298.44M	274.10M	254.37M	233.07M	253.88M	231.61M
Cash Flow
Free Cash Flow	19.70M	20.06M	8.42M	1.07M	22.55M	4.50M
Operating Cash Flow	30.46M	30.82M	12.54M	1.16M	30.14M	9.23M
Investing Cash Flow	-10.71M	-10.74M	-3.79M	-13.74M	10.19M	-4.72M
Financing Cash Flow	-2.82M	-2.10M	-19.68M	-5.84M	-33.37M	-9.41M

IMAX China Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1970, the sentiment is Positive. The current price of 8.43 is above the 20-day moving average (MA) of 8.36, above the 50-day MA of 8.06, and above the 200-day MA of 7.96, indicating a bullish trend. The MACD of 0.16 indicates Positive momentum. The RSI at 52.87 is Neutral, neither overbought nor oversold. The STOCH value of 29.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1970.

IMAX China Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1970	67 Neutral	HK$2.86B	11.00	11.86%	―	10.53%	26.74%
1981	61 Neutral	HK$1.72B	9.28	7.57%	5.71%	0.59%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
1060	56 Neutral	HK$26.29B	44.00	3.30%	―	40.31%	212.50%
0391	48 Neutral	HK$592.37M	-16.13	-14.60%	―	-44.93%	30.34%
1003	46 Neutral	HK$1.15B	―	―	―	―	―
1132	45 Neutral	HK$181.98M	-6.19	24.24%	―	-7.90%	93.34%

IMAX China Holding Corporate Events

IMAX Corporation Releases Q3 2025 Financial Results

IMAX China Holding, Inc. announced that its controlling shareholder, IMAX Corporation, released its third quarter 2025 financial results and quarterly report. This announcement is significant for stakeholders as it provides insights into the financial health and operational statistics of the parent company, which could impact IMAX China’s market positioning and investor relations. The financial data, prepared under U.S. GAAP, is not directly comparable to IMAX China’s reports, which adhere to IFRS, highlighting potential differences in financial performance metrics.