DB:IMK

Stock Analysis Report

IMAX China Holding

Executive Summary

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, and Taiwan.


Snowflake Analysis

Flawless balance sheet and good value.

Share Price & News

How has IMAX China Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IMK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-13.5%

IMK

2.8%

DE Entertainment

-2.7%

DE Market


1 Year Return

-39.2%

IMK

-12.3%

DE Entertainment

-20.4%

DE Market

Return vs Industry: IMK underperformed the German Entertainment industry which returned -12.3% over the past year.

Return vs Market: IMK underperformed the German Market which returned -20.4% over the past year.


Shareholder returns

IMKIndustryMarket
7 Day-13.5%2.8%-2.7%
30 Day-15.6%-16.9%-18.4%
90 Day-30.4%-29.4%-26.7%
1 Year-38.1%-39.2%-11.2%-12.3%-18.1%-20.4%
3 Year-71.9%-72.9%-5.8%-10.0%-19.1%-25.9%
5 Yearn/a34.1%23.9%-19.5%-30.4%

Price Volatility Vs. Market

How volatile is IMAX China Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is IMAX China Holding undervalued compared to its fair value and its price relative to the market?

25.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IMK (€1.35) is trading below our estimate of fair value (€1.81)

Significantly Below Fair Value: IMK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IMK is good value based on its PE Ratio (12.4x) compared to the Entertainment industry average (28.3x).

PE vs Market: IMK is good value based on its PE Ratio (12.4x) compared to the German market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: IMK is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: IMK is overvalued based on its PB Ratio (2x) compared to the DE Entertainment industry average (1x).


Next Steps

Future Growth

How is IMAX China Holding forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

7.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IMK's forecast earnings growth (7.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: IMK's earnings (7.6% per year) are forecast to grow slower than the German market (14.3% per year).

High Growth Earnings: IMK's earnings are forecast to grow, but not significantly.

Revenue vs Market: IMK's revenue (6.2% per year) is forecast to grow faster than the German market (4% per year).

High Growth Revenue: IMK's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IMK's Return on Equity is forecast to be low in 3 years time (14.6%).


Next Steps

Past Performance

How has IMAX China Holding performed over the past 5 years?

52.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IMK has high quality earnings.

Growing Profit Margin: IMK's current net profit margins (34.5%) are lower than last year (36.4%).


Past Earnings Growth Analysis

Earnings Trend: IMK has become profitable over the past 5 years, growing earnings by 52% per year.

Accelerating Growth: IMK's earnings growth over the past year (0.3%) is below its 5-year average (52% per year).

Earnings vs Industry: IMK earnings growth over the past year (0.3%) exceeded the Entertainment industry -50.4%.


Return on Equity

High ROE: IMK's Return on Equity (16.6%) is considered low.


Next Steps

Financial Health

How is IMAX China Holding's financial position?


Financial Position Analysis

Short Term Liabilities: IMK's short term assets ($153.5M) exceed its short term liabilities ($43.5M).

Long Term Liabilities: IMK's short term assets ($153.5M) exceed its long term liabilities ($25.7M).


Debt to Equity History and Analysis

Debt Level: IMK is debt free.

Reducing Debt: IMK has no debt compared to 5 years ago when its debt to equity ratio was 68.6%.


Balance Sheet

Inventory Level: IMK has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if IMK's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: IMK is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: IMK is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is IMAX China Holding's current dividend yield, its reliability and sustainability?

2.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IMK's dividend (2.65%) is higher than the bottom 25% of dividend payers in the German market (1.65%).

High Dividend: IMK's dividend (2.65%) is low compared to the top 25% of dividend payers in the German market (4.86%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, IMK has been paying a dividend for less than 10 years.

Growing Dividend: IMK has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.8%), IMK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IMK's dividends in 3 years are forecast to be well covered by earnings (34.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average management tenure


CEO

Edwin Tan (50yo)

0.33

Tenure

Mr. Edwin Tan has been Chief Executive Officer of IMAX China Holding, Inc. of IMAX Corporation since December 9, 2019. He served as Chief Executive Officer of the China operations of Messe Muenchen since 2 ...


Leadership Team

NamePositionTenureCompensationOwnership
Jim Athanasopoulos
CFO, COO & Executive Director4.92yrsUS$1.28m0.026% $124.0k
Mei-Hui Chou
Chief Marketing Officer & Executive Director4.92yrsUS$847.00k0.0094% $45.4k
Edwin Tan
Chief Executive Officer0.33yrno datano data
Matthew Gold
Senior Analyst of FP&A and Investor Relationsno datano datano data
Zi Chen
Joint Company Secretary & General Counsel1.92yrsno datano data
Honggen Yuan
Senior Vice President of Theatre Development8.58yrsno datano data
Francisco Navarro-Sertich
Head of Mergers & Acquisitions and Senior Vice President of Business Development3.92yrsno datano data
Wai Ling Chan
Joint Company Secretary4.92yrsno datano data

4.9yrs

Average Tenure

50yo

Average Age

Experienced Management: IMK's management team is considered experienced (4.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jim Athanasopoulos
CFO, COO & Executive Director4.92yrsUS$1.28m0.026% $124.0k
Mei-Hui Chou
Chief Marketing Officer & Executive Director4.92yrsUS$847.00k0.0094% $45.4k
Richard Gelfond
Chairman of the Board4.92yrsno datano data
John Davison
Independent Non-Executive Director4.58yrsUS$198.00k0.036% $173.4k
Megan Colligan
Non-Executive Director1.17yrsno datano data
Dawn Taubin
Independent Non-Executive Director4.58yrsUS$193.00k0.036% $173.4k
Jiande Chen
Vice Chairman0.33yrUS$1.16m0.012% $56.5k
Yue-Sai Kan
Independent Non-Executive Director5.92yrsUS$209.00k0.030% $146.6k
Peter Loehr
Independent Non-Executive Director0.50yrno datano data

4.6yrs

Average Tenure

60yo

Average Age

Experienced Board: IMK's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

IMAX China Holding, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IMAX China Holding, Inc.
  • Ticker: IMK
  • Exchange: DB
  • Founded: 2010
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: HK$4.076b
  • Listing Market Cap: HK$480.736m
  • Shares outstanding: 348.34m
  • Website: https://www.imax.cn

Number of Employees


Location

  • IMAX China Holding, Inc.
  • Verdant Place
  • 7th Floor
  • Shanghai
  • 200003
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1970SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2015
IMKDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2015
IMXC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2015
1970SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2015
1970SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2015

Biography

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, and Taiwan. It operates through three segments: Network Business, Theatre Business, and New Business and Other. The company engages in the digital re-mastering of Hollywood and Chinese language films into the IMAX format through a proprietary 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 provides related project management and maintenance 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 relevant software and hardware, as well as 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 relevant software; and research and development of software and hardware. Additionally, the company offers gift, handicraft, stationery commodity, clothing and apparel, and electronic product; 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) Holding, Inc. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 22:47
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.