CEO Richard Gelfond believes this is IMAX's biggest deal, estimating it will generate $1.8 billion in box office revenue over a 12 year period.
"Not only good for us but also good for Hollywood in general because they're penetrating China and this will be more box office coming back home," Gelfond said on CNBC's "Squawk on the Street."
Despite recent reports calling China's movie theater industry disappointing, Gelfond said recent results only appear lackluster compared to when the industry was growing at a 50% compounded rate.
"Our box office for the first half of this year was more than all of 2014 which was just 18 months ago. So it is a little bit relative," Gelfond noted.
Additionally, Gelfond believes IMAX's success is its different approach compared to other U.S. companies. He began investing in as "an equal partnership" with the Chinese, saying he invested in his clients personally by having spent time "there for 15 years" to "build trust over a period of time."
"If you look at the market as a whole, the U.S. has about 40,000 screens. But China'a pegged to exceed the U.S. in 2017-2018. You could see China someday having double the screens as the U.S.," Gelfond added.
Shares of IMAX are up by 4.66% to $32.76 in early afternoon trading today.
Separately, TheStreet Ratings team rates IMAX as a "buy" with a ratings score of B-.
This is driven by a few notable strengths, which TheStreet Ratings believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks TheStreet Ratings covers. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. TheStreet Ratings feels its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: IMAX