Major Cineplex valuation
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Country Analysis
With confidence on the rise, led by consumers and now being followed up by investors, Thailand is set to look outward, to assert economic role within Asia and the wider world.
Having concluded that economies overly dependent on exports to traditional markets such as North America and Europe are not sustainable, Thai policymakers are now embracing regional integration as a new model. Also, Companies are also revising their strategies and adopting a more regional focus.
For instant, Thailand continues to pursue a dual-track policy of building on local strengths in order to create a more equitable distribution of wealth, while leveraging those strengths to create new market opportunities beyond the country's borders; achieving economies of scales.
How Thailand asserts the role in Asia in activities as diverse as trade, finance, energy and tourism could well hold the key to future growth and prosperity.
Industry Analysis
Growing number of local firms in entertainment sector listed on the Stock Exchange of Thailand clearly indicates the strong performance of this industry during the recent year.
Among them are:
Major Cineplex Group PLC, the country's largest cinema chain
Traffic Corner Holdings PLC, a media entertainment group, listed on the Market for Alternative Investment (MAI)
GMM Media PLC, a subsidiary of GMM Grammy PLC, the country's largest entertainment group
RS Promotion Co, the country's second largest entertainment firm
Entertain Golden Village Co, the operator of the EGV cinema chain
Matching Studio Co, which will be the first production house company to be listed on the MAI
Most media analysts agree that double-digit growth can be expected from total media spending this year as it is attributed by the rising growth to economic recovery, driven by consumer and corporate spending.
Over the next three years, I expect the outlook for the media and entertainment business in Thailand to remain positive and the sector to outperform many other sectors in the stock market.
Porter's 5 Forces Analysis
Bargaining Power of Suppliers (+)
The Entertainment Complex is seen to be limited to only with only few players, which makes the bargaining power quite concentrates to the Major Group such as Major, EGV, SF cinemas. One evidence reflecting the lesser bargaining power of the suppliers is the recent decline in the Film Hire (decline in profit sharing to the movie suppliers)...