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

 


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 by 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