mm2 Asia

mm2 Asia: DBSV has an unrated report on the counter, highlighting that the group is poised to ride on growing demand and support for local production; gaining traction overseas. mm2 is poised to ride
on the growing demand for local production. In Asia and the global scene, mm2 will continue to grow its presence in Taiwan, Hong Kong and China, leveraging on the business relationships it has established.

Besides movie production and distribution, mm2 has also acquired a 3D animation company and five cineplexes in Malaysia. This will provide a source of recurring income to the group and cost savings in the longer term, as mm2 usually has to pay about 50% of its gross intake for rental of cinemas.

The house derives a fair value of $0.84 on the counter, based on 18x FY Mar17F EPS, offering potential upside of 27% from current price.