mm2 Asia

About mm2 Asia

mm2 Asia is a leading producer of films and TV/online content in Asia. As a producer, mm2 provides services over the entire film-making process – from financing and production to marketing and distribution, and thus has diversified revenue streams. mm2 also owns entertainment company, UnUsUaL, and cinemas in Malaysia and Singapore.

2Q2020 Results Announcement

Thursday, 14 November, 3pm

Download FACTSHEET

Recent Developments

14 Aug 19

mm2 Asia reports continued momentum in core and cinema business for 1QFY20
16 Jul 19

Annual Report FY2019
30 May 19

Strong Revenue Growth in All Business Segments for FY2019
21 Mar 19

Refinancing of loan facilities
12 Feb 19

mm2 reports 3Q2019 results

Investment Merits

Integrated Entertainment Content Giant
Asia Content Powerhouse
Re-Inventing The Cinema Business
Proxy To Consumer Experiential Spending (via UnUsual Limited)
Proxy To The Rising Penetration Of Virtual Reality (via VividThree)

Research

mm2 ASIA CONSENSUS

Consensus Rating

4.00
BUY:HOLD:SELL

2:1:0
Consensus TP

0.305

Brokerages	Report	Analysts	Recommendation	TP
CIMB	Download File	Ngoh Yi Sin	ADD	0.370
Maybank Kim Eng	Download File	Luis Hilado	HOLD	0.260
DBS	Download File	Ling Lee Keng	ADD	0.290

Archive

2019	3 Jun 19- Look for organic growth in FY20F 3 Jun 19- Maybank: Road to Redemption 31 May 19- DBS: Upgrade to BUY as value emerges 25 Mar 19- Maybank: Needs to be “More than blue” 20 Feb 19- Maybank: 9MFY19 results 14 Feb 19- Nomura: 9MFY19 results 14 Feb 19- CIMB: 9MFY19 results 13 Feb 19 – DBS: 9MFY19 results	14 Aug 19- DBS: 1QFY20 results; Value emerging
2018	4 Jun 18 – Maybank: FY18 results 4 Jun 18 – CIMB: FY18 results 30 May 18- DBS: FY18 results 8 Feb 18-DBS: Growth intact	19 Nov 18- Maybank: 1H2019 results 19 Nov 18- CGS-CIMB: 1H2019 results 15 Nov 18 – DBS: 1H2019 results 19 Aug 18- Nomura: 1Q19 results 17 Aug 18- Maybank: 1Q19 results 15 Aug 18- CIMB: 1Q19 results 15 Aug 18- DBS: 1Q19 results 13 Sep 18 – Cimb conference
2017	14 Jun 17- DBS: Acquisition of GV cinema chain in Singapore 14 Jun 17 – CIMB: A Gold Class acquisition 26 May 17- DBS: An UnUsUaL boost 24 May 17- DBS: FY17 net earnings beat our expectations b y 13% 13 Apr 17 – DBS: An UnUsUal boost 11 Jan 17 – DBS: New group ceo appointed to boost management team	3 Nov 17- DBS: Next showing: Strong growth 3 Nov 17- CIMB: 1H18 results 2 Nov 17 – DBS: Cathay cinema acquisition 15 Aug 17- CIMB: Upgrade to add 14 Aug 17 – DBS: Growth path on track 24 Jul 17 – CIMB: Downgrade to HOLD 24 Jul 17- DBS: Approval for completion of GV acquisition not obtained 19 Jul 17 – DBS: Setting stage for sustainable growth
2016	12 Jun 16 – CIMB Downgrade to HOLD 9 May 16- CIMB FY16 results 24 Mar 16- DBS: Entry of starhub	15 Nov 16- DBS: Growth intact 9 Nov 16- DBS: Building recurring income 13 Sep 16- DBS: Growing presence in north asia 8 Nov 16- CIMB Upgrade to Add 24 Aug 16 – CIMB Upgrade to Add
Initiation	Nomura – Initiation (2018) Maybank – Initiation (2018) JP Morgan – Non-Rated (2018)	DBS – Initiation (2016) CIMB – Initiation (2016)

Stock Information

Price	0.197
Market Cap (SGDm)	229
YE	03/2020
Earnings Release Date (Est)	14/11/2019
52 wk high/low	0.425/0.186
YTD % change	-37.5%
Free Float %	44%
Insiders Holding	38%

Key financial highlights

Key Highlights	2017	2018	2019
Revenue (SGDm)	96	192	266
Net Profit (SGDm)	18	22	19
P/E	13.1	10.2	12.0
P/B	2.7	1.3	1.1
Return on Equity	21.1	14.2	10.8
Net D/E	-14.6%	-13.1%	76.7%

Source: Bloomberg (Based on price at S$0.197)

Risks

No long-term financing arrangements for productions. The commencement of each production is dependent on mm2’s ability to secure funding.

Unavailability of good scripts. Lack of good scripts for production may lead to less support from stakeholders.

Inability to predict the commercial success of movies produced. The commercial success of its productions is primarily determined by inherently unpredictable audience reactions.

High gearing