SINGAPORE (Aug 13): Cityneon’s bet on Hollywood blockbuster-themed exhibitions seems to be paying off, even as analysts cut their earnings forecasts. Investors are cheering the fact that, under executive chairman Ron Tan, the company is winning new deals to build exhibition sets around the world, based on popular movies.

In April, Cityneon made its European debut when it opened Jurassic World: The Exhibition in Paris. The following month, it announced that it had secured the rights to build a second Jurassic World set. At the same time, it announced it had clinched a seven-year licensing deal with Lions Gate Entertainment for The Hunger Games: The Exhibition. Along with The Walt Disney Co’s The Avengers and Transformers, Cityneon now has a total of four such licences.

Cityneon runs a permanent exhibition in Las Vegas and six travelling exhibitions that have toured major cities from China to Australia. Some analysts expect at least one more new exhibit to run this year and another next year. With nine exhibits and a mostly full schedule past 2019, and with the earliest licence to expire only in 2023, the stock is largely favoured for its earnings visibility. It is trading at 14 times earnings, or a 20% discount to global peers, according to analysts.

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