The leader in film industry software

Vista is to cinema what Windows is to desktop: dominant. It provides software for 40% of large circuit cinema screens and is four times the size of its largest competitor. China added over 8000 screens in 2014, a rate of 22 screens per day and grew box office revenues at 45.5% in 2015. China has plenty of room for growth with cinema attendance at 0.8x per person per year vs US of 3.2x. VGL’s recent joint venture with WePiao (a subsidiary of Tencent) means it's ideally positioned to capitalise on this growth. At 26x PER FY16 VGL doesn’t look undervalued, but this overlooks its high growth businesses in Movio, Veezi and Numero which are only just beginning to hit their inflection points. We value VGL between $7 - $9, or 32% - 70% upside from the current share price. Further details on China, new contracts for Movio and acquisitions are just some of the catalysts which will close the valuation gap. Read our investment thesis on page 7: (VIEW LINK)