{"id":11188,"date":"2022-03-29T07:00:42","date_gmt":"2022-03-28T23:00:42","guid":{"rendered":"https:\/\/www.smallcapasia.com\/?p=11188"},"modified":"2022-04-24T08:45:16","modified_gmt":"2022-04-24T00:45:16","slug":"mm2-asia-a-turning-point-finally-arrives","status":"publish","type":"post","link":"https:\/\/www.smallcapasia.com\/zh-hans\/mm2-asia-a-turning-point-finally-arrives\/","title":{"rendered":"mm2 Asia: A Turning Point Finally Arrives"},"content":{"rendered":"

Excerpts from UOB-KH Report<\/em><\/p>\n

mm2 Asia (MM2 SP)<\/h2>\n

We expect earnings to post a sharp recovery from FY22 onwards, driven by all three segments:<\/p>\n

    \n
  1. Cinema attendance expected to recover as the majority of Singapore\u2019s and Malaysia\u2019s populations are vaccinated,<\/li>\n
  2. Robust pipeline of core production business of S$150m-190m in the next 2-3 years, and<\/li>\n
  3. Resumption of in-person concerts. mm2 plans to launch Metaviva, a NFT marketplace.<\/li>\n<\/ol>\n

    Mm2\u2019s 5x FY24F PE is expected to expand closer to global peers\u2019 average of 21x. Maintain BUY with a higher target price of S$0.115.<\/p>\n

    Cinemas: Better positioned for recovery.<\/h2>\n

    Domestic cinema attendance is poised for recovery as 93% of Singapore\u2019s population is fully vaccinated with 60% having taken the booster shot and close to 80% of Malaysia\u2019s population is fully vaccinated.<\/p>\n

    Cinemas in Singapore and Malaysia have been allowed to reopen since 2H21, albeit at a lower capacity.
    \nSingapore\u2019s authorities have allowed 1,000 pax per cinema hall with a 1-metre safe distancing rule between different groups while Malaysia\u2019s cinemas are allowed to operate at 50% capacity.<\/p>\n

    Furthermore, dining-in and food and beverage consumption in cinemas, a large and vital contributor of revenue, has been permitted in both countries which would help boost cinema revenue.<\/p>\n

    Core production business: Robust pipeline.<\/h2>\n

    Over the next 2-3 years, mm2\u2019s core production pipeline remains sizeable, amounting to S$150-190m. Currently, the group has over 30 projects that are in various stages of development, production and distribution.<\/p>\n

    As production of films\/tv series ramps up in FY22, mm2 is set to produce and distribute highly
    \nanticipated titles in new and existing markets.<\/p>\n

    Some titles include local favourite \u201cAh Girls Go Army\u201d, making S$1m in ticket sales in three days with a second sequel already being confirmed<\/em>.<\/p>\n

    Concerts: Restart of in-person concerts.<\/h2>\n

    After a lengthy hiatus, in-person concerts\/shows have resumed as more countries gradually ease restrictions.<\/p>\n

    In 1HFY22, Unusual Entertainment (Unusual) co-produced 59 in-person shows for circus act \u201cLa Clique\u201d and 29 shows for local act \u201cBoom Boom Room Live!\u201d.<\/p>\n

    Also, Unusual produced two sold-out in-person JJ Lin concerts, indicating pent up demand for concerts. In a recent announcement, Unusual is set to co-produce 54 concerts across 54 Chinese cities for renowned singers Angela Zhang and Kelly Yu.<\/p>\n

    Others: Entering the Metaverse.<\/h2>\n

    mm2 has plans to launch an online NFT marketplace named \u201cMetaviva\u201d for digital assets focusing on popular regional media content.<\/p>\n

    As a comparison, the global OpenSea NFT marketplace currently boasts a valuation of US$13.3b.<\/p>\n

    Peer Comparison<\/h2>\n

    \"mm2<\/a><\/p>\n

    Comparing to global peers, we expect mm2 to follow suit and experience a sharp recovery in earnings. AMC Entertainment, one of the largest US cinema chains, has turned EBITDA positive on the back of easing restrictions since 1Q21.<\/p>\n

    Closer to home, IMAX China recovered strongly as 90% of its theatres have reopened in 1H20, with 2H21 expected to outperform yoy according to the company.<\/p>\n

    Valuation<\/h2>\n

    [UOB-KY] Maintain BUY, with a higher target price of S$0.115<\/strong> (S$0.095) based on a SOTP valuation seen below.<\/p>\n

    \"mm2<\/a><\/p>\n

     <\/p>\n

    You can find the full report here<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

    Excerpts from UOB-KH Report mm2 Asia (MM2 SP) We expect earnings to post a sharp recovery from FY22 onwards, driven by all three segments: Cinema attendance expected to recover as the majority of Singapore\u2019s and Malaysia\u2019s populations are vaccinated, Robust pipeline of core production business of S$150m-190m in the next 2-3 years, and Resumption of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1,58,57],"tags":[1372,1373,177],"class_list":["post-11188","post","type-post","status-publish","format-standard","hentry","category-blog","category-singapore-stocks","category-stocks","tag-mm2-stock","tag-mm2-share-price","tag-mm2-asia"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/posts\/11188","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/comments?post=11188"}],"version-history":[{"count":3,"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/posts\/11188\/revisions"}],"predecessor-version":[{"id":11725,"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/posts\/11188\/revisions\/11725"}],"wp:attachment":[{"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/media?parent=11188"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/categories?post=11188"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/tags?post=11188"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}