mm2: The movie producing company is up ~6.7% today, after announcing that its latest co-production, "Ah Boys to Men 3: Frogmen" is the top grossing movie for three consecutive weeks in Singapore since its 19th Feb release, surpassing the "Ah Boys to Men 1" record of $6.2m.
Movie director, Jack Neo is hopeful that the movie will hit the $7m mark by the end of the week and eventually reach the $8m mark.
Separately, the group recently entered into a term sheet to acquire 51% of a Vividthree, a leading multi-award winning player in Singapore's 3D animation field.
If successful, the acquisition will expand MM2's film production value chain and strengthen its competitive advantage as a movie producer to capture new markets, customers and business opportunities.
Valuations wise, compared to peer Spackman Entertainment, its Korean counterpart also listed on SGX, MM2 appears to be a better play for movie sector exposure.
Both media companies are trading at 3.0-3.6x P/B, but while Spackman is loss-making (FY14: US$8m loss), MM2 is operationally profitable in FY3/14 with net profit of $2.7m.