mm2 Asia: (S$0.675) Proxy to growing demand for local production
A recent unrated note from a local house highlighted that mm2 Asia is poised to ride on the growing demand for local production.
The Asian film and TV producer has a stake over the entire filmmaking process, which comprises financing, production, marketing and distribution. This enables a diversified revenue stream for the group.
To complement its traditional movie production and distribution business, mm2 recently acquired a 3D animation company and five cineplexes in Malaysia, which is expected to provide a source of recurring income stream.
At the current price, mm2 Asia is trading at 21.1x FY3/16 P/E, 19% cheaper than peers average of 26x.
The house has a fair value of $0.84 for mm2, based on a 18x FY17 PER.
No comments:
Post a Comment