IMAX China Holding (1970) AI Stock Analysis

• Market Cap: $2.81B
• Dividend Yield: N/A
• Average Volume (3M): 86.76K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.58
• Revenue Growth: 10.53%
• EPS Growth: 26.74%
• Country: HK
• Employees: 99
• Sector: Communication Services
• Sector Strength: 89
• Industry: Entertainment
• EPS (TTM): 1.57
• Shares Outstanding: 339,191,220
• 10 Day Avg. Volume: 38,120
• 30 Day Avg. Volume: 86,763
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 26.80
• Enterprise Value/Gross Profit: 49.32
• Enterprise Value/Ebitda: 44.88
• 1Y Price Target: $9.50
• Price Target Upside: 14.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: HK$9.50 ▲(14.46% Upside)

IMAX China Holding's strong financial health and positive technical indicators are the primary strengths, positioning the stock favorably. While the valuation is fair, the lack of a dividend and declining revenues slightly temper the outlook.

IMAX China Holding Business Overview & Revenue Model

Company Description

IMAX China Holding (1970) is a leading entertainment technology company focused on the Greater China region, specializing in premium cinematic experiences. It is a subsidiary of IMAX Corporation and operates in the film industry, providing advanced theater systems and immersive film experiences. The company offers IMAX theater systems, digital remastering of films into the IMAX format, and other related services to commercial multiplexes, museums, and educational institutions.

How the Company Makes Money

IMAX China Holding generates revenue primarily through three key streams: sales and installation of IMAX theater systems, ongoing maintenance services, and revenue sharing agreements with theater operators. The company receives significant income from the sale and lease of its proprietary projection and sound systems to cinema operators. Additionally, it earns revenue through film licensing and remastering fees, where movies are converted into the IMAX format. Revenue sharing agreements with theaters allow IMAX China to earn a portion of box office sales from films shown in IMAX theaters. Strategic partnerships with major film studios and theater chains also contribute to its income, enhancing its market presence and expanding its network of premium cinema locations.

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. Despite declining revenues, the company maintains efficiency in operations and cash generation.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	81.00M	86.98M	73.33M	112.80M	52.33M
Gross Profit	44.02M	54.53M	39.70M	68.19M	19.35M
EBITDA	48.38M	53.84M	31.94M	64.67M	8.73M
Net Income	22.22M	27.50M	10.76M	38.22M	-26.74M
Balance Sheet
Total Assets	333.57M	318.28M	326.40M	349.76M	334.79M
Cash, Cash Equivalents and Short-Term Investments	80.05M	63.04M	74.97M	97.74M	88.47M
Total Debt	1.45M	1.75M	13.91M	4.16M	7.64M
Total Liabilities	59.47M	63.91M	93.33M	95.88M	103.19M
Stockholders Equity	274.10M	254.37M	233.07M	253.88M	231.61M
Cash Flow
Free Cash Flow	20.06M	8.42M	1.07M	22.55M	4.50M
Operating Cash Flow	30.82M	12.54M	1.16M	30.14M	9.23M
Investing Cash Flow	-10.74M	-3.79M	-13.74M	10.19M	-4.72M
Financing Cash Flow	-2.10M	-19.68M	-5.84M	-33.37M	-9.41M

IMAX China Holding Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.30
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1970, the sentiment is Neutral. The current price of 8.3 is below the 20-day moving average (MA) of 8.34, below the 50-day MA of 8.38, and above the 200-day MA of 7.87, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 46.58 is Neutral, neither overbought nor oversold. The STOCH value of 6.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	72 Outperform	$2.81B	10.83	11.86%	―	10.53%	26.74%
1981	68 Neutral	HK$3.01B	29.59	4.16%	3.30%	1.09%	―
1060	67 Neutral	HK$34.66B	86.57	2.29%	―	31.62%	3.08%
Sector *	60 Neutral	$44.01B	4.39	-12.81%	4.08%	1.86%	-42.71%
0391	46 Neutral	HK$586.45M	―	-20.32%	―	-6.36%	-166.67%
1132	46 Neutral	HK$207.18M	―	24.24%	―	-7.90%	93.34%
1003	43 Neutral	HK$1.26B	―		―	―	―

IMAX China Holding Corporate Events

IMAX China Reports Strong Interim Financial Growth for 2025

IMAX China Holding, Inc. reported a substantial increase in its interim financial results for the first half of 2025, with revenues rising to $57.8 million from $43.9 million in the same period the previous year. The company’s operating profit nearly doubled to $30.2 million, reflecting strong performance and efficient cost management. The announcement highlights the company’s robust growth trajectory and its strategic positioning in the entertainment technology sector, which is likely to bolster stakeholder confidence.

IMAX China Schedules Board Meeting to Review Interim Results

IMAX China Holding, Inc. has announced a board meeting scheduled for July 24, 2025, to discuss and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the possibility of an interim dividend and address other business matters, indicating a review of the company’s financial performance and potential shareholder returns.

IMAX China Grants RSUs to Directors as Part of Remuneration Package

IMAX China Holding, Inc. announced the grant of 473,400 Restricted Share Units (RSUs) to five directors as part of their remuneration package. This grant represents approximately 0.14% of the company’s issued share capital and is valued at around HK$3,896,082. The RSUs, which are exempt from certain reporting and approval requirements, will vest immediately without performance conditions, and a professional trustee will manage the administration and vesting process.

IMAX China Approves Key Resolutions at Annual General Meeting

IMAX China Holding, Inc. held its Annual General Meeting on June 12, 2025, where all proposed resolutions were passed. Key resolutions included the re-election of directors, authorization for directors to fix remuneration, reappointment of auditors, and mandates for share buybacks and issuance. These decisions reflect a strategic focus on maintaining strong governance and operational flexibility, potentially enhancing shareholder value.

IMAX China Announces 2025 Annual General Meeting Agenda

IMAX China Holding, Inc. has announced its Annual General Meeting scheduled for June 12, 2025, in Shanghai, China. Key agenda items include the re-election of three non-executive directors, the re-appointment of PricewaterhouseCoopers as auditors, and the authorization for the company to buy back shares and issue additional shares. These resolutions aim to strengthen the company’s governance and provide flexibility in capital management, potentially impacting its market positioning and shareholder value.