IMAX China Holdings:1H18results first take,earnings missed MQ by 11%on installations

Event

IMAX China reported 1H18results pre-market on 26July. Adj. earnings camein 11% below our estimate and 6% below consensus (only one estimate),mainly driven by lower system installations in 1H18(8sales type vs 12of ourestimate). Although the company retained its target of 105new installations forthis year on a full-year basis, the new signings in 1H18dropped to 34systemsfrom 83in 1H17, echoing our concern regarding softer contributions from newinstallation going forward. We downgraded IMAX China to Neutral on 14June( IMAX China Holdings - Soft momentum after Avengers) .

Impact

IMAX China’s earnings call will be held at 7.30am, HKT, 26July. Dial-in andwebcast: US and Canada: (866) 548-4713. Hong Kong: 800-961-105; otherinternational callers (647) 484-0477. The conference ID for the call is 1956058.